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SS/Medicare Taxes


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Guest benefitsanalyst
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Should SS/Medicare taxes be taken from Section 125 deductions?

Posted

"Pre-tax contributions (salary reductions) made by an employee to a qualified cafeteria plan are excluded from the employee's income. They are not subject to federal income tax withholding or social security, Medicare, and FUTA taxes . . ." The Payroll Source

[if 401(k) contributions are done through a cafeteria plan arrangement, they are subject to social security, Medicare, and FUTA.]

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