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Stat. 415 (1954), currently codified as secs. 3101-3125, imposes
Social Security and Medicare taxes (collectively referred to as
“FICA taxes”) on a portion of the wages paid to an employee.
Under FICA, the employer and the employee each pay a like amount
of FICA taxes based on the employee’s wages as defined in section
3121(a). Secs. 3101, 3111. The employer withholds the
employee’s half of the FICA taxes and remits it, along with the
employer’s half, to the Treasury Department. Sec. 3102. Section
3121(a) defines wages and establishes the annual ceiling which
limits the amount of wages subject to the Social Security portion
of the FICA taxes. The taxable wage base applies separately to
each employer. Veterinary Surgical Consultants, P.C. v.
Commissioner, 117 T.C. 141, 151 (2001), affd. sub nom. Yeagle
Drywall Co. v. Commissioner, 54 Fed. Appx. 100 (3d Cir. 2002).
Thus, if an employee receives wages from more than one employer,
the annual wage limitation does not apply to the aggregate
compensation received. Id.; secs. 31.3121(a)(1)-1(a)(3),
31.3306(b)(1)-1(a)(3), Employment Tax Regs.
Section 3502(a) provides that the FICA taxes imposed on the
employee’s portion of his wages shall not be allowed as a
deduction to the taxpayer in computing taxable income. However,
the employee may be eligible for a credit or refund of the excess
employee portion of the FICA tax that applies with respect to
wages in excess of the applicable wage limitation. Veterinary
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Last modified: May 25, 2011