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Printable Form 1099-H Vallejo California: What You Should Know
See FTF-120-01) FICA The Social Security tax is collected by a program administered by the Social Security Administration as it is now known. The Tax Court in Philadelphia, PA, has ruled that there is no statutory right or obligation by the employer under sections 6012(a) and 6013 to collect these taxes from the employee. The employer may still be liable under various provisions of the Internal Revenue Code, but this liability is generally limited to those years in which the employee is not entitled to the full amount of Social Security retirement benefits. This limitation is based on two factors. First, a period of continuous service for at least 1 year is required to ensure that the employee will receive the full amount of Social Security. Second, the fact that the employee is an employee is a factor in determining the employee's entitlement to the full amount of Social Security benefits and will, therefore, generally constitute “continuous service.” The Supreme Court has ruled that the employee's entitlement to such benefits does not automatically include the employer's obligation to collect the employer's share of FICA on behalf of the employee. This decision has held that if the employer were required to collect such taxes, for example from individuals who receive Social Security benefits, the employer could not be liable for them under section 62 of the Internal Revenue Code. However, it has held that it may still be liable if the employee does not receive retirement benefits, but is receiving unemployment compensation benefits for the full number of years of service as required by section 501(c)(19) of the Internal Revenue Code. The Supreme Court has specifically held that section 601(c)(19) must apply retroactively when a period of service for at least 1 year has expired. Section 6013 and 6014 — Social Security — FICA Section 6013 governs the employer's duty to withhold social security taxes on behalf of the employee. This section prohibits such withholding from tax-exemption social security benefits except for the following two exceptions. First, the employer may withhold social security taxes from the employees' wages if it “reasonably believes” such taxes are not required to be withheld on behalf of any other employee. Second, if the employer must withhold for any other employee, the company may withhold from the employees' wages only the taxes required to be paid directly by the employer as determined by the Social Security Administration.
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