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  1. #1
    Bronze Lounger
    Join Date
    Jan 2001
    La Jolla, CA
    Thanked 77 Times in 72 Posts

    Adjust salary cell to reflect employee absorbing all of the FICA

    I'm drawing a blank on the math I need for this.

    Normally in the U.S., FICA is shared equally between the employee and employer.
    I have a situation where the real compensation is, say, $30,000. However, since it's a commission-based income, and for other reasons, the company does not want to absorb their half of the FICA. So, I need to adjust the reported compensation from $30,000 to something else (WHAT?) so that the FICA percents are totally paid by the employee.

    In this example, the real gross is $30,000. The employee is taking 20% withholding ($6,000). FICA is 7.65% for each but while the employer must pay its share ($2,295), the employer wants to adjust the REPORTED salary so that the employee is absorbing all of the FICA.

    Does that make sense? Even if technically illegal, they think they can pull this off by adjusting the gross compensation. But I can't figure out how to adjust the salary.

    Maybe I just take the original gross (30K) and subtract the original employer contribution?

    I think that's the answer...guess I needed to type it out to have my brain kick in.

    Now, I don't know how to delete this post because it's not worth clogging the forum.
    Last edited by kweaver; 2014-12-15 at 17:52.

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