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Do you pay SSI and/or Medicare tax on 401a match?


Guest sconleyg
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Guest sconleyg

Question of a small employer in TN:

We pay SSI and Medicare tax on regular income. If we offer an optional 401a with up to a 3% match, do we have to pay empoyee SSI and/or medicare tax on the 3% match?

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No. But are you referring to the employee contributions or the employer contributions, not that it makes any difference.

Why do you ask? The explanation regarding the difference between pre-tax contributions (mandatory or pick-up) and voluntary after tax employee contributions are usually given at enrollment time and covered in the SPD, so I suspect that you have some issue that causes you concern.

George D. Burns

Cost Reduction Strategies

Burns and Associates, Inc

www.costreductionstrategies.com(under construction)

www.employeebenefitsstrategies.com(under construction)

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Guest sconleyg

I'm referring to the employer contributions, the match, given on voluntary pre-tax contributions

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