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New itemized deduction limitation will affect high-income individuals next year
New itemized deduction limitation will affect high-income individuals next year 266 266 Lindsay Yeager

Beginning in 2026, taxpayers in the top federal income tax bracket will see their itemized deductions reduced. If you’re at risk, there are steps you can take before the end of 2025 to help mitigate the negative impact.

The New Limitation Up Close

Before the Tax Cuts and Jobs Act (TCJA), certain itemized deductions of high-income taxpayers were reduced, generally by 3% of the amount by which their adjusted gross income exceeded a specific threshold. For 2018 through 2025, the TCJA eliminated that limitation. The One Big Beautiful Bill Act (OBBBA) makes that elimination permanent, but it puts in place a new limitation for taxpayers in the 37% federal income tax bracket.

Reduced Itemized Deductions for Top Earners

Specifically, for 2026 and beyond, allowable itemized deductions for individuals in the 37% bracket will be reduced by the lesser of: 1) 2/37 times the amount of otherwise allowable itemized deductions or 2) 2/37 times the amount of taxable income (before considering those deductions) in excess of the applicable threshold for the 37% tax bracket.

For 2026, the 37% bracket starts when taxable income exceeds $640,600 for singles and heads of households, $768,700 for married couples filing jointly, and $384,350 for married taxpayers filing separately.

Generally, the limitation will mean that the tax benefit from itemized deductions for taxpayers in the 37% bracket will be as if they were in the 35% bracket.

Some Examples

The reduction calculation is not so easy to understand. Here are some examples to illustrate how it works:

Example 1: You have $37,000 of otherwise allowable itemized deductions in 2026. Before considering those deductions, your taxable income exceeds the threshold for the 37% federal income tax bracket by $37,000.

Your otherwise allowable itemized deductions will be reduced by $2,000 (2/37 × $37,000). So, your allowable itemized deductions will be $35,000 ($37,000 − $2,000). That amount will deliver a tax benefit of $12,950 (37% × $35,000), which is 35% of $37,000.

Example 2: You have $100,000 of otherwise allowable itemized deductions in 2026. Before considering those deductions, your taxable income exceeds the threshold for the 37% bracket by $1 million.

Example Calculation of the Deduction Reduction

Your otherwise allowable itemized deductions will be reduced by $5,405 (2/37 × $100,000). So, your allowable itemized deductions will be $94,595 ($100,000 − $5,405). That amount will deliver a tax benefit of $35,000 (37% × $94,595), which is 35% of $100,000.

Tax Planning Tips

Do you expect to be in the 37% bracket in 2026? Because the new limitation doesn’t apply in 2025, you have a unique opportunity to preserve itemized deductions by accelerating deductible expenses into 2025.

For example, make large charitable contributions this year instead of next. If you aren’t already maxing out your state and local tax (SALT) deduction, you may be able to pay state and local property tax bills in 2025 instead of 2026. And if your medical expenses are already close to or above the 7.5% of adjusted gross income threshold for that deduction, consider bunching additional medical expenses into 2025.

Strategies to Minimize the 2026 Deduction Limitation

In addition, there are steps you can take next year to avoid or minimize the impact of the itemized deduction reduction. These will involve minimizing the 2026 taxable income that falls into the 37% bracket (or even keeping your income below the 37% tax bracket threshold). There are several potential ways to do this. For instance:

  • Recognize capital losses from securities held in taxable brokerage accounts.
  • Make bigger deductible retirement plan contributions.
  • Put off Roth conversions that would add to your taxable income.

Tax Planning for Pass-Through and Sole Proprietorships

If you own an interest in a pass-through business entity (such as a partnership, S corporation or, generally, a limited liability company) or run a sole-proprietorship business, you may be able to take steps to reduce your 2026 taxable income from the business.

Will you be Affected?

If you expect your 2026 income will be high enough that you’ll be affected by the new itemized deduction limitation, contact a Smolin Representative. We’ll work with you to determine strategies to minimize its impact to the extent possible.

Is your accounting software working for your business or against it?
Is your accounting software working for your business or against it? 266 266 Lindsay Yeager

When buying new accounting software or upgrading your existing solution, it’s critical to evaluate your options carefully. The right platform can streamline operations and improve financial reporting accuracy. However, the wrong one can result in reporting delays, compliance risks, security breaches and strategic missteps. Here are some common pitfalls to avoid.

Relying on a generic solution

You might be tempted to choose a familiar, off-the-shelf software product. While this may seem like a practical solution, if the software isn’t tailored to your company and industry, you may be setting yourself up for inefficiencies and frustration later.

For example, construction firms often need job costing, progress billing and retainage tracking features. Not-for-profits need fund accounting and donor reporting features. Retailers may benefit from real-time inventory management and multi-channel sales integrations. Choosing a one-size-fits-all tool may result in a patchwork of manual fixes and workarounds that undermine efficiency and add risk.

Overspending or underspending

Accounting systems vary significantly in their features and costs. It’s easy to overspend on software with flashy dashboards and advanced add-ons — or to settle on a no-frills option that doesn’t meet the organization’s needs. Both extremes carry risk.

The ideal approach lies somewhere in the middle. Start by benchmarking your transaction volume, reporting complexity, staff skill levels and support infrastructure. Then build a prioritized feature “wish list” and set a realistic budget. Avoid paying for functions you’ll never use, but don’t underinvest in critical capabilities, such as automation, scalability or integration. Think strategically about where your business will be a year or two from now — not just today.

Clinging to legacy tools

Upgrading or moving to a new accounting platform is a major undertaking, so it’s easy to put these projects on the back burner. But waiting too long can lead to inefficiencies, data inaccuracies and missed opportunities. Modern platforms offer cloud-based access, AI-driven automation and mobile functionality — features that older systems can’t match. As more businesses shift to hybrid work and remote collaboration, staying current is essential for accuracy and speed.

If your financial closes take too long, if reports don’t reconcile easily or if you can’t view your numbers in real time, it may be time to modernize. Treat accounting software upgrades as part of ongoing business improvement — not an occasional “big project.”

Periodic Testing for Smarter Financial Decisions

Test your system periodically to ensure efficient data flows, accurate reconciliations and useful management reports. This exercise moves you from merely “keeping books” to driving financial insight.

Ignoring integration, mobility and security

In the past, accounting software was a standalone application, and data from across the company had to be manually entered into the system. But integration is the name of the game these days. Your accounting system should integrate with the rest of your tech suite — including customer resource management (CRM), inventory and project management platforms — so data can be shared seamlessly and securely. If you’re manually entering data into multiple systems, you’re wasting valuable resources.

Also consider the availability and functionality of mobile access to your accounting system. Many solutions now include apps that allow users to access real-time data, approve transactions and record expenses from their smartphones or tablets.

Prioritize Security in Your Accounting Systems

Equally important is cybersecurity. With financial information increasingly stored online, prioritize systems with data encryption, secure cloud storage and multi-factor authentication. Protecting your data means protecting your business reputation.

Leaving your CPA out of the loop

Choosing the right accounting software isn’t just an IT project — it’s a strategic investment decision for your business. Our team has helped hundreds of companies select accounting technology tools that fit their needs. Let’s get started on defining your requirements, evaluating software features and rolling out a seamless implementation plan. Contact a Smolin Representative to discuss your pain points, training needs and budget. We can help you find a solution that works for your business.

How the Social Security wage base will affect your payroll taxes in 2026
How the Social Security wage base will affect your payroll taxes in 2026 266 266 Lindsay Yeager

The 2026 Social Security wage base has been released. What’s the tax impact on employees and the self-employed? Let’s take a look.

FICA tax 101

The Federal Insurance Contributions Act (FICA) imposes two payroll taxes on wages and self-employment income — one for Old-Age, Survivors, and Disability Insurance, commonly known as the Social Security tax, and the other for Hospital Insurance, commonly known as the Medicare tax.

The FICA tax rate is 15.3%, which includes 12.4% for Social Security and 2.9% for Medicare. If you’re an employee, FICA tax is split evenly between your employer and you. If you’re self-employed, you pay the full 15.3% — but the “employer” half is deductible.

Above the Threshold? No Social Security Tax Owed

All wages and self-employment income are generally subject to Medicare tax. But the Social Security tax applies to such income only up to the Social Security wage base. The Social Security Administration has announced that the wage base will be $184,500 for 2026 (up from $176,100 for 2025). Wages and self-employment income above this threshold aren’t subject to Social Security tax.

No Employer Share, But Withholding Still Required

Another payroll tax that higher-income taxpayers must be aware of is the additional 0.9% Medicare tax. It applies to FICA wages and self-employment income exceeding $200,000 ($250,000 for joint filers and $125,000 for separate filers). There’s no employer portion for this tax, but employers are required to withhold it once they pay an employee wages for the year exceeding $200,000 — regardless of the employee’s filing status. (You can claim a credit on your income tax return for withholding in excess of your actual additional Medicare tax liability.)

What will you owe in 2026?

For 2026, if you’re an employee, you’ll owe:

  • 6.2% Social Security tax on the first $184,500 of wages, for a maximum tax of $11,439 (6.2% × $184,500), plus
  • 1.45% Medicare tax on wages up to the applicable additional Medicare tax threshold, plus
  • 2.35% Medicare tax (1.45% regular Medicare tax plus 0.9% additional Medicare tax) on all wages in excess of the applicable additional Medicare tax threshold.

Self-Employed in 2026? Know Your Payroll Tax Obligations

For 2026, if you’re self-employed, you’ll owe:

  • 12.4% Social Security tax on the first $184,500 of self-employment income (half of which will be deductible), for a maximum tax of $22,878 (12.4% × $184,500), plus
  • 2.9% Medicare tax on self-employment income up to the applicable additional Medicare tax threshold (half of which will be deductible), plus
  • 3.8% Medicare tax (2.9% regular Medicare tax plus 0.9% additional Medicare tax) on all self-employment income in excess of the applicable additional Medicare tax threshold. (Half of the 2.9% portion will be deductible; none of the 0.9% portion will be deductible.)

The payroll tax deduction for the self-employed can be especially beneficial because it reduces adjusted gross income (AGI) and modified adjusted gross income (MAGI). AGI and MAGI can trigger certain additional taxes and the phaseouts of many tax breaks.

Have questions?

Payroll taxes get more complicated in some situations. For example, what if you have two jobs? Payroll taxes will be withheld by both employers. Can you ask your employers to stop withholding Social Security tax once, on a combined basis, you’ve reached the wage base threshold? No, each employer must continue to withhold Social Security tax until your wages with that employer exceed the wage base. Fortunately, when you file your income tax return, you’ll get a credit for any excess withheld.

If you have more questions about payroll taxes, such as what happens if you have wages from a job and self-employment income, please contact a Smolin Representative. We can help you ensure you’re complying with tax law while not overpaying.

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Szczomak Named to the Forbes 2025 America’s Top 200 CPAs
Szczomak Named to the Forbes 2025 America’s Top 200 CPAs 266 266 Tonni

john szczomakParsippany, NJ – October 17, 2025 – Congratulations to our own John M. Szczomak, CPA and President of the New Jersey Society of CPAs on being named to the Forbes 2025 America’s Top 200 CPAs. This second annual list includes those from assorted specializations throughout the country. The CPAs have distinguished themselves through success at their firms, the advancement of their profession and by giving back to their communities. Learn more about the selection process and view the entire list by visiting forbes.com/lists/top-cpas/.

This honor highlights his leadership, commitment to mentorship, and decades of service to the accounting profession. Szczomak, a Partner at Smolin, Lupin & Co., LLC, continues to advocate for the future of the profession through education and pipeline development.

 

  • Noelle Merwin
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Smolin Celebrates Grand Opening of New Parsippany Office with Ribbon-Cutting Ceremony
Smolin Celebrates Grand Opening of New Parsippany Office with Ribbon-Cutting Ceremony 600 400 Noelle Merwin

Parsippany, NJ – June 11, 2025 – Smolin proudly announces the grand opening of its new office at 10 Waterview Blvd., marked by a ribbon-cutting ceremony held yesterday.

The event was graced by esteemed representatives from Morris County, the Township of Parsippany-Troy Hills, and the Morris County Chamber of Commerce. Special thanks to Commissioners Doug Cabana, Christine Myers, Thomas Mastrangelo, Mayor James Barberio, and Sheriff James Gannon for their warm welcome into the community.

A standout moment of the ceremony was the recognition of John Szczomak, Member of the Firm and the newly elected President of the NJCPA. John was presented with a certificate of honor by Christine Myers in acknowledgment of his exceptional leadership and dedicated service to the community.

“Opening our new office in Parsippany marks an exciting milestone for Smolin,” said Sal Bursese, COO and ribbon cutter. “We’re grateful for the community’s warm welcome—this new space allows us to better serve our clients and continue our commitment to excellence.”

Smolin extends heartfelt thanks to our CEO, Paul Fried and all the valued team members and guests who joined us for this meaningful occasion.

About Smolin 

Since 1947, Smolin has been committed to providing industry-leading professional financial and accounting services uniquely designed to meet the needs of each and every client. Smolin’s attention to the needs of each client has helped them become the successful and respected

Media Coverage 

Patch.com
Top Accounting firm opens business in Parsippany. Read the full coverage on Patch.com

ROI-NJ 
Smolin holds ribbon-cutting for new office in Parsippany. Read the full article on ROI-NJ’s coverage of our ribbon-cutting ceremony.     

Parsippany Focus 
Smolin Celebrates Grand Opening. Coverage of ceremony by Parsippany Focus     

     
Answers to 3 Common Questions After Filing Your Tax Return

Answers to 3 Common Questions After Filing Your Tax Return
Answers to 3 Common Questions After Filing Your Tax Return 850 500 smolinlupinco

The 2023 federal tax filing deadline has come and gone. (Unless, of course, you filed for an extension until October 15.) Whether you’ve already filed or you’re still working on your return, you might have some questions once it’s been filed.

Let’s take a look at three of the most common ones.

1. When can I expect to receive my tax refund?

If you waited until the final hour to file, you may still be waiting for your return. The IRS says nine out of ten taxpayers should see their refunds within 21 days.

If you’re concerned that it’s taking too long, the IRS has an online tool that can help. Just type irs.gov into your browser and click on “Get your refund status.”

Make sure you’re prepared, though. You’ll need: 

  • Your social security number or individual taxpayer identification number 
  • Filing status 
  • Exact refund amount 

2. How do I need to keep tax records?

Typically, the statute of limitations for the IRS to audit your return or assess additional taxes is three years after you file your return. Thus, it’s a good idea to hold onto tax records related to your return for at least this long.

However, the statute of limitations is actually six years for taxpayers who underreport their gross income by more than 25%.

It’s a good rule of thumb to keep your actual tax returns indefinitely. That way, you can prove that you filed a legitimate return if needed. (No statute of limitations applies for an audit if you didn’t file a return or you filed a fraudulent one.) 

Retirement account records should be kept until three or six years after you’ve depleted the account and reported the last withdrawal on your tax return.

Real estate or other investment records should be kept for as long as you own the asset or until three or six years after you sell it and report the sale on your tax return. 

3. What do I do if I fail to report something? 

In most cases, you can file an amended tax return on Form 1040-X and claim your refund. You’ll need to do this within three years after the date you filed your original return or within two years of the date you paid the tax, whichever is later.

For example, if you filed a 2023 tax return on April 15, 2024, you’d be able to file an amended return until April 15, 2027.

There are some circumstances in which you could have longer to file an amended return. For example, the statute of limitations for bad debts is longer than the usual three-year time limit for most items on your tax return. Typically, you can amend a tax return to claim a bad debt for seven years after the due date of the tax return for the year that the debt became worthless. 

Questions? Smolin can help

Questions about filing an amended return, or accessing your refund? We’re here to help—and not just during tax season! Feel free to contact your Smolin accountant for guidance year-round.

2024 Q2 Tax Deadlines for Businesses and Employers

Key 2024 Q2 Tax Deadlines for Businesses and Employers
Key 2024 Q2 Tax Deadlines for Businesses and Employers 850 500 smolinlupinco

The second quarter of 2024 has arrived! If you’re a business owner or other employer, add these tax-related deadlines to your calendar. 

April 15

  • Calendar-year corporations: File a 2023 income tax return (Form 1120) or file for an automatic six-month extension (Form 7004) and pay any tax due.
  • Corporations: Pay the first installment of estimated income taxes for 2024. Complete Form 1120-W (worksheet) and make a copy for your records.
  • Individuals: File a 2023 income tax return (Form 1040 or Form 1040-SR) or file for an automatic six-month extension (Form 4868). Pay any tax due.
  • Individuals: pay the first installment of 2024 estimated taxes (Form 1040-ES), if you don’t pay income tax through withholding.

April 30

  • Employers: Report FICA taxes and income tax withholding for the first quarter of 2024 (Form 941). Pay any tax due.

May 10

  • Employers: Report FICA taxes and income tax withholding for the first quarter of 2024 (Form 941), if they deposited on time, and fully paid all of the associated taxes due.

May 15

  • Employers: Deposit withheld income taxes, Medicare, and Social Security for April if the monthly deposit rule applies.

June 17

  • Corporations: Pay the second installment of 2024 estimated income taxes.

Questions? Smolin can help

This list isn’t all-inclusive, which means there may be additional deadlines that apply to you. Contact your accountant to ensure you’re meeting all applicable tax deadlines and learn more about your filing requirements.

Standard-Business-Mileage-Rate-Increasing-in-2024

Standard Business Mileage Rate Increasing in 2024
Standard Business Mileage Rate Increasing in 2024 850 500 smolinlupinco


The IRS recently announced an increase to the optional standard mileage rate used to calculate the deductible cost of operating an automobile for business. In 2024, the cents-per-mile rate for panel trucks, pickups, vans, and cars will rise from 65.5 cents to 67 cents.

The increase is meant to reflect, in part, changing gasoline prices. According to AAA, the national average price of a gallon of gas rose from $3.10 in December 2022 to $3.12 in December 2023.

Tracking expenses vs. standard rate

Generally, businesses can deduct actual expenses attributable to the business use of vehicles, such as:

  • Vehicle registration fees 
  • Licenses 
  • Insurance
  • Repairs
  • Oil
  • Tires
  • Gas

You may also claim a depreciation allowance for the vehicle. (Of course, it’s worth noting that certain limits may apply.) 

If maintaining detailed records of vehicle-related expenses feels tedious, the cents-per-mile rate may be a helpful alternative. However, you’ll need to keep track of certain information for each trip, including:

  • Destination 
  • Rate
  • Business trip

Businesses use the standard rate when reimbursing employees for the business use of their personal vehicles. This practice aids in attracting and retaining employees who utilize their personal vehicles for business purposes. The rationale behind this is that, according to existing laws, employees cannot deduct unreimbursed business expenses, including business mileage, from their individual income tax returns.

When employing the cents-per-mile rate, it’s important to note that adherence to various rules is necessary. Failure to comply may result in reimbursements to employees being treated as taxable wages for them.

How the rate is calculated

The IRS commissions an annual study about fixed and variable costs of vehicular operation, including depreciation, repairs, maintenance, and gas. The business cents-per-mile rate is adjusted each year based on this study.

Occasionally, the IRS will change the rate midyear if gas prices fluctuate substantially. 

Cases where the cents-per-mile rate is not allowed

The cents-per-mile method isn’t appropriate—or allowed—in every scenario.

  • How you’ve claimed deductions for the same vehicle in the past
  • Whether the vehicle is new to your business 
  • If you plan to take advantage of certain first-year depreciation tax breaks on it

Questions? Smolin can help.

Need assistance determining the best method to deduct business vehicle expenses? We’re here to help. Contact us to learn more about tracking and claiming these expenses on your 2023 tax returns and throughout 2024.

New Per Diem Business Travel Rates Effective October 1st

New Per Diem Business Travel Rates Effective October 1st
New Per Diem Business Travel Rates Effective October 1st 850 500 smolinlupinco

Do traveling employees at your business find documenting expenses tedious? Are you equally frustrated at the energy and time needed to review business travel expenses? If so, relief is on its way. In Notice 2023-68, the IRS set forth special “per diem” rates, which became effective on October 1st.

These rates may be used to substantiate expenses for lodging, incidentals, and meals when traveling away from home. (Note: Employees in the transportation industry can use the transportation industry rate.)

How to use the “high-low” method

Rather than tracking actual business travel expenses, the high-low method provides a simplified alternative through fixed travel per diems. These amounts are provided by the IRS and vary by locality.  

For certain areas with higher costs of living, the IRS establishes an annual flat rate. Any location within the continental United States that the IRS does not list as a “high-cost” area should automatically be considered “low-cost” under the high-low method. 

Areas such as Boston and San Francisco, for example, may be considered high-cost, while less metropolitan areas could be considered low-cost. Some areas, like resort areas, could be considered high-cost only during certain times of the year.

For business travel, this method can be used in lieu of the specific per-diem rates for business destinations.

When employers provide lodging or pay for the hotel directly, employees may only receive a per diem reimbursement for meals and incidental expenses. For employees who don’t incur meal expenses for a calendar day (or partial day) of travel, there is also a $5 incidental-expenses-only rate. 

Recordkeeping simplified

Employees working for companies that use per diem rates don’t need to meet the typical recordkeeping rules required by the IRS. Generally, receipts aren’t required under the high-low per diem method.

However, employees are still responsible for substantiating the business purpose, place, and time of travel. Per diem reimbursements aren’t typically subject to payroll tax withholding or income tax withholding reported on an employee’s Form W-2. 

What to know about the FY2024 rates

For travel occurring after September 30, 2023, FY2024 rates apply. The high-cost area per diem increased by $12, and the low-cost area per diem increased by $10. 

High-cost area per diem in 2024

The 2024 rate for all high-cost areas within the continental United States is $309. This can be broken down as follows.

Lodging: $235
Meals and incidental expenses: $74

Low-cost area per diem in 2024

For all other areas within the continental United States, the per diem rate is $214 for travel occurring after September 30, 2023. This may be broken down as follows:

Lodging: $150
Meals and incidental expenses: $64

Special considerations

The rules and restrictions that apply to reporting business travel expenses are nuanced. 

As an example, companies using the high-low method for an employee must continue using the same method to reimburse expenses for travel within the continental United States throughout the calendar year. However, the company may reimburse the same employee for travel outside of the continental United States using any permissible method during that calendar year.

In the last three months of a calendar year, employers must continue to use the same method (high-low method or per diem) for an employee as they used during the first nine months of the calendar year. 

Also worth noting: per diem rates don’t apply to individuals who own at least 10% of the business. 

Questions? Smolin can help. 

Now is the time to review travel rates and consider switching to the high-low method in 2024. Reduce the time and frustration associated with traditional travel reimbursement benefits managers and traveling employees alike.

For more information, contact your accountant.

Adjustments Social Security Wage Base

Adjustments to Social Security Wage Base Ahead
Adjustments to Social Security Wage Base Ahead 850 500 smolinlupinco

In 2024, the Social Security wage base for employees and self-employed people will increase.

Employees and employers can expect the wage base for computing Social Security tax to rise to $168,600 next year—a significant jump from the wage base of $160,200 in 2023. 

Self-employment income and wages above this amount won’t be subject to Social Security tax.

The basics on the Social Security wage base increase

Employers pay two taxes under the Federal Insurance Contributions Act (FICA): Social Security tax (for Old Age, Survivors, and Disability Insurance) and Medicare tax (for Hospital Insurance).

The amount of compensation subject to the Social Security tax is capped at a maximum, but there is no maximum amount for the Medicare tax. 

In 2024, employers should expect a FICA tax rate of 7.65%. This includes 6.2% for Social Security, with the remaining 1.45% going to Medicare. 

What is changing in 2024

In 2024, employees will pay a total of:

  • 6.2% Social Security tax on the first $168,600 of wages (6.2% x $168,600 makes the maximum tax $10,453.20)
  • 1.45% Medicare tax on the first $200,000 of wages ($250,000 for joint returns, $125,000 for married taxpayers filing separate returns)
  • 2.35% Medicare tax (regular 1.45% Medicare tax plus 0.9% additional Medicare tax) on all wages in excess of $200,000 ($250,000 for joint returns, $125,000 for married taxpayers filing separate returns)

In 2024, self-employed people pay the following rates in self-employment tax:

  • 12.4% Social Security tax on the first $168,600 of self-employment income, for a maximum tax of $20,906.40 (12.4% x $168,600)
  • 2.90% Medicare tax on the first $200,000 of self-employment income ($250,000 of combined self-employment income on a joint return, $125,000 on a return of a married individual filing separately)
  • 3.8% (2.90% regular Medicare tax plus 0.9% additional Medicare tax) on all self-employment income in excess of $200,000 ($250,000 of combined self-employment income on a joint return, $125,000 for married taxpayers filing separate returns)

What to know if you have more than one employer

Many people worked more than one job to make ends meet in 2023. If your employees are among them, you might have questions. 

Employees with a second job will have taxes withheld from two different employers. They may not ask you to stop withholding Social Security tax once they reach the wage base threshold. Even when an individual’s combined withholding exceeds the maximum amount of Social Security taxes that can be imposed for the year, each employer must withhold Social Security taxes. 

For any excess withheld, the employee should see a credit on their tax return.

Questions? Smolin can help.

If you have questions about payroll tax filing or payments, contact the helpful team at Smolin. We’ll help ensure you stay in compliance while achieving the most favorable tax rate possible.

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