Payroll Service For Small Businesses - Generally, no. Employer contributions to a qualified pension, annuity, profit-sharing or stock bonus plan, simplified employee pension (SEP), and §403(b) plans are not subject to FICA, FUTA and federal income tax withholding. However, salary reduction contributions made by an employee to a §401(k) plan, a §403(b) plan, a SIMPLE retirement account, a pick-up plan or a §457(b) plan are included in the definition of wages for purposes of FICA and FUTA taxes. Considering a Tax Professional? For no obligation free consultation contact us today!
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