RONALD MARK SEMARIA,  CFE, DABFE, FACFEI,CSC, CHS-III
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DEDUCTION FOR PAYING EMPLOYEES’ FICA TAXES OK’D

The tax code expressly bars a deduction for an employees’ share of FICA. So when a company agrees to pay it’s employees’ share of FICA during a payroll tax audit, IRS agent asked the National Office if the company could claim deduction.

The National Office says that the no-deduction bars taxpayer’s from deducting their own FICA taxes. However, the rule does not bar a company from deducting taxes owed by its employees as long as there is an appropriate business purpose. The company’s desire to avoid having to ask its employees for the tax is a sufficient reason.

 

 

The following articles are for informational purposes only, and your should always consult with your tax advisor to determine the tax implications for your particular financial situation.

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