S-CORP how to request refund of employer portion of excess social security tax withholding refund

Forum|Forum|3 years ago
March 11, 2023
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Hi,

I have a temporary W-2 JOB (Primary JOB with different employer). It maxed out to SSA cap $147,000.00 and both employee/employer taxes withheld to max. Now I have my own S-Corp which I work for my self on project based (seasonal job). I pay myself salary. Since I maxed out SSA withholding from my Primary JOB employer, do I still needs to withhold social security tax for my S-corp? I know employee excess social security will be refunded. But How can I get S-corp employer portion excess social security tax? Or should I not withhold Social Security Tax for S-corp?

AliciaP1

Your S-Corp is not eligible for any refund since it did not pay a maxed salary and it is required to continue to withhold and match the social security tax until you reach the capped salary from the S-Corp. The cap applies to one person's salary, so the 2 separate businesses each treat the amount they pay you as a separate person's salary. From the business's perspective, you are one person to your primary job and a completely different person to your S-Corp. From your perspective, you are one person that hit the cap and will get your excess withholding refunded on your personal tax return.

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gousecrisAuthor

Hi Alicia,

Thanks for the info. So whatever my S-corp withholds, I will not get refunded and it is gone(loss for me). And In case of 1099 with two jobs for two employers will be refunded to the independent contractor right. Why the same law not applied here. Since I am the owner as well as employee and Social Security is based on the SSN. And I did not with hold the FICA taxes as I already know I maxed out. Do I get any letter? How Can I avoid double payment of Social Security on Employer portion?

ThomasM125

I'm not sure what you mean regarding a letter. You will get refunded your social security tax withheld by the S Corporation, but not the portion the company pays. Instead of filing as an S Corporation, you could file the business return as an LLC (single member LLC on schedule C or multi member LLC on partnership form 1065) and you would avoid the social security tax altogether on your excess earnings.

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