180.160 – FICA DEDUCTIONS (Social Security & Medicare)

Updated: May 2019

POLICY
Maine Media Workshops + College shall make payroll deductions for FICA (Social Security-OASDI and Medicare-MED), and make appropriate FICA contributions, for eligible employees, following governing regulations. FICA and Medicare are federally mandated taxes withheld from employees’ paychecks and a tax paid by the employer. Programs include funds for old age, survivors’, disability, and medical insurance.

PROCEDURE
Determining Eligibility
All Maine Media employees participate in the Federal Social Security Program except nonresident alien individuals who qualify for exemption from the social security tax under section 3121(b)(19).

The business office is responsible for determining the status of each of its employees and for initiating the necessary staff forms to establish individual employee participation status.

Deductions
FICA (OASDI & MED) taxes are deducted from eligible employee weekly pay not to exceed the taxable wage base. Employees who join Maine Media will have taxes withheld at federally mandated rates without regard to the amount withheld in the calendar year by previous employers. Medicare taxes do not have a maximum, taxable wage base. An employee may claim a refund of excess deductions on his/her income tax return for that year.

Additional Information
As required by law, Maine Media furnishes each employee with a Form W-2, which shows the amount of Social Security tax withheld, and the amount of earnings subject to the Social Security tax.

Information regarding Social Security benefits and other aspects of the Social Security Program is available through the employee’s local Social Security Administration Office.