Q: A terminating employee is requesting an early W-2. He’s also requesting thatprovide him with written verification that he hit the 2014 Social Security taxable wage base, even though his W-2 clearly shows this in Box 3. He insists that he doesn’t need to restart paying Social Security taxes with his new employer, since he maxed out for 2014. Is he correct?
A: You can give this employee his letter, but it really doesn’t matter if you give him a letter or not. You should explain to him that the information he seeks is available to him in Box 3 of his early W-2. You should also explain that FICA taxes start anew with every new employer, so he’s misinformed. If he overpays his Social Security taxes, he will claim that overwithholding on his 2014 1040 form as part of his income tax refund.