Social Security Payout for 2006

Anyone here have their social security witholding paid off for the year yet? This year the taxible limit is $94,200.

Taxable fringe benefits?

Almost..........

It'll be early September before I cross over that threshold. Can't wait, it's like a nice raise going into the holiday season.

I would have had it paid out by now if it weren't for taking 18% out each week, trying to max out my 401(k) contribution. I finished paying into that for the year last month and now I'm closing in on the social security. Three more weeks should do it if the available overtime holds out. I usually don't get there this early but they kept waving all this money in my face this year and it was too hard to pass up.

You're right, it's like getting a big pay raise for the rest of the year...then we get to start all over again in January.

Your 401(k) contribution is irrelevant to your social security taxation. The social security should be coming out of the full wage base before 401(k) contributions.

I'm pretty sure that my SS deduction is based on the gross amount for the week AFTER my 401(k) deduction. Had it not been for that $15,000 contribution which is now maxed out I would have reached the SS max withholding several weeks ago.

I could be wrong, it wouldn't be the first time.

EDIT: By golly, you're right. I just looked up my Epay check statements for the last few weeks and the SS tax is around 1.5% since crossing the magic $94,200 threshold if I factor in the 401(k) contribution. Coolness. Thanks.

My question is, what do you people do for a living that have already made $94,200 this year

? (and do any of you want to buy a super-low mileage SVT with your huge disposable income

)

I wonder, if I switched jobs mid-year, how does the second employer know when I have reached my taxable limit? Hmmm...

I wonder, if I switched jobs mid-year, how does the second employer know when I have reached my taxable limit?

I've read that if you have more than one job and your total is more than the SS limit you need to watch your statements very closely so they don't take more out than the total limit. Supposedly you would need to contact some government agency and get a refund for the amount overpaid.

I guess anyone in that situation could do a Google search for the agency who would handle this.

Originally posted by Brian M:
My question is, what do you people do for a living that have already made $94,200 this year?

I dont pay SS, so there

not taking a paycheck is a good thing

Originally posted by Brian M:
My question is, what do you people do for a living that have already made $94,200 this year?

I have to admit all I thought when I saw this thread was, "Hmm, someone's curious if any CEGers make more than him."

Originally posted by RoadiJeff:
I'm pretty sure that my SS deduction is based on the gross amount for the week AFTER my 401(k) deduction. Had it not been for that $15,000 contribution which is now maxed out I would have reached the SS max withholding several weeks ago.

I could be wrong, it wouldn't be the first time.

EDIT: By golly, you're right. I just looked up my Epay check statements for the last few weeks and the SS tax is around 1.5% since crossing the magic $94,200 threshold if I factor in the 401(k) contribution. Coolness. Thanks.

Yeah, your pre-tax deductions don't have any effect on the magic number from an SS withholding perspective.

Originally posted by Brian M:
My question is, what do you people do for a living that have already made $94,200 this year? (and do any of you want to buy a super-low mileage SVT with your huge disposable income )

Senior IT Manager at a top law firm. What can I say, law firms pay well.

I wish I had a lot of disposable income BTW. I had more disposable income when I was in college honestly (I made good money working collections at MBNA back then and had no bills really). Most of my paycheck goes toward our house, home improvements, two cars, insurances, private school tuition, and household/living expenses for a family of five.

I've always maintained, no matter how much you make, it's never enough.

Originally posted by Mr. Hightower FTW:
I wonder, if I switched jobs mid-year, how does the second employer know when I have reached my taxable limit? Hmmm...

They won't know unless you tell them and even then, their payroll system may not be able to handle the adjustment. I had this problem when I switched jobs back in 2002. If you have too much withheld via SS, you'll get it back when you file your tax return for the year in question.

Originally posted by Brian M:
My question is, what do you people do for a living that have already made $94,200 this year?

Believe it or not I have a blue collar job. I had to just about live at work this year to get to this point by early July. At one time I was averaging over 80 hours per week. The long hours are not required by my employer but I wanted to see what I could do one year as I took a break from my usual busy bicycling summer schedule. Maybe I'll take the rest of the year off - now there's a thought.

I still managed to fit in a few vacations. Been to Vegas for a week back in Feb. and going back again in Oct. Except for the jackpot I won when I put a quarter in the only slot machine I've ever played in my life when I was 12 years old I've never gambled a cent there.

Originally posted by cjbaldw:

Originally posted by Mr. Hightower FTW:
I wonder, if I switched jobs mid-year, how does the second employer know when I have reached my taxable limit? Hmmm...

They won't know unless you tell them and even then, their payroll system may not be able to handle the adjustment. I had this problem when I switched jobs back in 2002. If you have too much withheld via SS, you'll get it back when you file your tax return for the year in question.

Exactly. I was in this position last year when I switched jobs mid-year. On form 1040 for 2005 it was Line 67 under the Payments heading where you placed your excess withholdings.

If your lazy and do not do them by hand, Turbo Tax will fill in this box for you as well.

doing it by hand is for suckers and geeks that want to check the accuracy of the software.

e-file ftw!
(I do it by hand first on a worksheet and then use a free e-file company's software)

Originally posted by frenchblueC2:
doing it by hand is for suckers and geeks that want to check the accuracy of the software.
e-file ftw!
(I do it by hand first on a worksheet and then use a free e-file company's software)

Exactly the same here...

Well, it looks like I will be screwed out of a bunch of cash this year. Just going to have to get it back on next year's taxes.

Making this much money sucks!

Originally posted by Mr. Hightower FTW:
Well, it looks like I will be screwed out of a bunch of cash this year. Just going to have to get it back on next year's taxes.

Have you already switched to the second employer?
Have you already reached the wage base limit?

Regardless of the answer to those questions, don't let your employer go over the wage base limit. If you notice it on your next paystub, notify your payroll people so it doesn't continue.
Employers must match the withholdings, so you'll be doing them a favor, as well as yourself by notifying them asap.