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MId-Year Job Switch and Social Security
Take care that a job change doesn't result in overpaying Social Security taxes. No Employee has to pay the 4.2% levy on more than $106,800 in 2011, but employers have to withhold the tax on the first $106,800 they pay. So if you were to make $75,000 in the first half of the year, then switch jobs and make another $80,000 in 2011, the tax will be withheld from all $155,000 - costing you $2,024. Your new employer can't short-circuit withholding of the tax nor refund any excess, but you can claim a credit for it when you file your 2011 tax return.
If you have any questions about these or any tax developments, please contact Fred Schutz at 856-722-5300 ext. 201 or Dave Gill at ext. 210. |
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