- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Coaching Changes
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
FICA withholding - 1099 contractor converted to w-2 employee
Posted on 9/17/24 at 1:39 pm
Posted on 9/17/24 at 1:39 pm
If a 1099 consultant is converted to a full time w-2 employee during the same year, do the employer's FICA contributions toward social security count toward the annual cap before any burden to the earlier portion of the year served as a 1099 contractor? Meaning if I max out SS contributions as a w-2 employee in the second half of the year, I make zero social security contributions for the first half of the year as a contractor?
2
Posted on 9/17/24 at 1:53 pm to sneakytiger
Could you write this in a more confusing way, I almost understood it? 
The cap is the cap whether or not you have 10 jobs and some are contract jobs. Looks like you lucked out having someone else pay your social security portion. Sweet deal.
I am not a CPA...
The cap is the cap whether or not you have 10 jobs and some are contract jobs. Looks like you lucked out having someone else pay your social security portion. Sweet deal.
I am not a CPA...
Posted on 9/17/24 at 2:06 pm to UpstairsComputer
I understand the cap from an employee standpoint, but my question is more from the employer and self employed perspective. In my mind I've already paid up to the cap for my 1099 earnings through estimated payments, but from what I've read, my estimated payments aren't earmarked as FICA contributions until I file my annual return.
Posted on 9/17/24 at 2:16 pm to sneakytiger
Sounds like you're not filing a 941 or doing a payroll for yourself and just running it through a Schedule C. If this is the case, you've likely waaaay overpaid your taxes (I suppose this is relative to your income) and should receive a refund later.
Might be worth a CPA for the year if you're doing it on your own. I bet it'll work out, but for a few hundred bucks, it may be worth ignoring some guy on the internet.
Might be worth a CPA for the year if you're doing it on your own. I bet it'll work out, but for a few hundred bucks, it may be worth ignoring some guy on the internet.
Posted on 9/18/24 at 2:40 pm to UpstairsComputer
quote:
Might be worth a CPA for the year if you're doing it on your own. I bet it'll work out, but for a few hundred bucks, it may be worth ignoring some guy on the internet.
Id assume a CPA will be more than just a few $100 fwiw. Given that, depending on the OP's original 1099 contract amount its still probably worth having a CPA do.
The other option as mentioned is just overpay now, use turbotax and see if you will get a significant refund or credit, and go from there.
Posted on 9/18/24 at 7:13 pm to sneakytiger
When you file your tax return the social security tax calculated on your self employment income will only be up to the max overall social security limit. The social security wages from your W2 will be taken into account in this calculation so you won't pay over the max social security. Make sense?
Posted on 9/18/24 at 9:58 pm to SiriusBraveFan
quote:
The social security wages from your W2 will be taken into account in this calculation so you won't pay over the max social security. Make sense?
Do the W2 contributions apply to the cap first even though my SE earnings were earlier in the year? I want my W2 wages to apply first, since my employer is paying half vs me paying all as self employed
Posted on 9/18/24 at 10:56 pm to sneakytiger
quote:
Do the W2 contributions apply to the cap first even though my SE earnings were earlier in the year? I want my W2 wages to apply first, since my employer is paying half vs me paying all as self employed
Neither really apply first or second. But in the calculation of SE taxes (aka FICA) they subtract any wages that have already been withheld on.
Looking at Form SE will probably be the easiest way to understand it. Look at lines 7,8,9.
LINK
Page 1 of 1
Popular
Back to top
Follow TigerDroppings for LSU Football News