If two employers over-withhold on FICA… what happens with the employer's portion?

I get that employees get a credit if too much Social Security is withheld when they have multiple jobs, but what about the employers? Do they get any kind of refund, or are they stuck paying their share regardless of how much was overpaid?

As far as I know, the employer still pays their share no matter what.

Koa said:
As far as I know, the employer still pays their share no matter what.

Yep, I’m a CPA and can confirm this is how it works.

Dolph said:

Koa said:
As far as I know, the employer still pays their share no matter what.

Yep, I’m a CPA and can confirm this is how it works.

Thanks! That explains why I couldn’t find anything about how an employer could claim a refund—because they can’t.

Koa said:
As far as I know, the employer still pays their share no matter what.

Correct. Employers only stop paying once their payroll hits the wage cap for Social Security.

If an employee reaches the threshold with one employer, that employer stops withholding both the employee and employer share. But if they hit the limit because of multiple employers, there’s no change for the employer—each one pays their portion up to the limit on their own payroll.

You’re asking about the employer’s share. That part doesn’t go back to the employee, it just stays in the Social Security fund. And honestly, the fund could use every bit of extra money.

Fionn said:
You’re asking about the employer’s share. That part doesn’t go back to the employee, it just stays in the Social Security fund. And honestly, the fund could use every bit of extra money.

I wasn’t thinking of a credit for the employee, more like if the employer would get some sort of benefit. But it sounds like employers are just on the hook for their share no matter what.

Side note: Trying to come up with a way for two employers to share responsibility would be a nightmare anyway.

@Aubrey
Totally. Plus, employers wouldn’t even have the necessary info to file properly in a system like that.

Fionn said:
@Aubrey
Totally. Plus, employers wouldn’t even have the necessary info to file properly in a system like that.

Exactly. I guess it’d take some kind of notice from the IRS or SSA, or maybe a refund check, but it’s not happening.

Everyone’s right that the employer share is paid and not refundable. This is one of the reasons choosing S-Corp status for an LLC isn’t always great if you also work a W-2 job. You can end up paying more than you need to.

If you hit the limit with one employer, they stop withholding. But if you have multiple employers, both will keep withholding until each hits the cap. You get the overpaid amount back when you file your taxes.

@Dez
The question was about the employer portion.

Tristan said:
@Dez
The question was about the employer portion.

Oops, my mistake. I thought it was the usual employee question. But now I’m curious too! Maybe you get a surprise bonus in your Social Security later on. :sweat_smile:

Tristan said:
@Dez
The question was about the employer portion.

Haha, yeah, I thought I made it clear but the employee question gets asked so often that people jump to conclusions. :grin:

If you overpay, the excess is credited back to you on your tax return. It’s treated like extra withholding.

Max said:
If you overpay, the excess is credited back to you on your tax return. It’s treated like extra withholding.

The question was about the employer portion.

I wonder if not giving employees credit for excess FICA would help fix the Social Security funding issue.