Maximum Year-to-Date Federal Insurance Contributions Act Wages

If the Adjust for FICA Withholding field is selected on the Basis tab of the Tax Codes Exempt form, and the maximum gross Federal Insurance Contributions Act (FICA) wages is reached and the FICA domestic currency amount withheld for the year reaches the maximum that can be withheld from the maximum gross wages, FICA is no longer considered when calculating the State tax. If the Adjust for FICA Withholding field is cleared, this field is not valid.

The sum of Social Security Tips and the Annual Social Security Wages cannot exceed the amount specified on the Payroll Tax Parameters form (the Maximum YTD FICA Wages field). Prior to printing, the Social Security Tips amount is adjusted to ensure that this upper limit is maintained. This functionality has been implemented on Magnetic Media also, and conforms with Social Security Administration (SSA) guidelines.

Note: The Maximum YTD FICA Wages field has a larger numeric format than the SSA may intend for it in any given year. This allows for growth but places the burden of correct data entry on the user.