Friday, June 14, 2013

Are contributions made to qualified retirement plans subject to FICA, FUTA and federal income tax withholding?

ABA Tax Accounting | Payroll Service for Small Businesses | St. Paul, MN Accounting Firm
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!
651-621-5777 After Hours: (612)424-1540

No comments:

Post a Comment