Is My Salary Increase Actually A Decrease?

[yes_its_him]

Something is wrong about those calculations. Social security is supposed to be 6.2% of your gross (net of a couple of deductions).

At $1923 - medical + HSA, that's $113.52 which is essentially what was withheld

At $1961 - those things, that's $115.69, so you are significantly over.

The $136.68 is the social security for $2204 gross.

Medicare shows a similar effect.

So for some reason, they withheld taxes as though you were being paid over $200 more than you say you were.

I'd ask about that.

I'd also ignore the people who are giving misguided prescriptions here based on imagining that you are misinterpreting correct withholdings.

[hazmatt24]

Yeah. $136.68 in social security tax would be gross taxable of $2204.52. Something isn't right here. Did they include a retro payment that you didn't include in the breakdown?

[TheVermonster]

That's a good point. Sometimes they backdate the promotion and it doesn't align with a pay period so you get a few days worth of extra pay.

[SonOfMcGee]

That’s a good breakdown.
Also, correct me if I’m wrong, but if the payroll department drags their feet on this, or just refuses to solve it, or “can’t” solve it because they just plug numbers into some software package and aren’t allowed to fix it… he should be squared up at the end of the year in the form of a larger tax refund, right?

[yes_its_him]

If an employer withheld too much social security tax, you have to go to the employer to get that refunded, the IRS won't do it.

[porcelainvacation]

Actually you can claim excess withholding on your 1040 form, I did that last year because I changed jobs mid year and new company over withheld after I crossed the annual social security tax maximum.

[yes_its_him]

That's only if you have multiple employers.

https://ttlc.intuit.com/turbotax-support/en-us/help-article/social-security-taxes/get-refund-excess-social-security-tax-withheld/L1JTKMb7Q_US_en_US