Employer charging me for employer FICA.?

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I’m a mortgage broker in SLC Utah I think my employer is doing something illegal but i’m not sure. I get paid by commission and my contract stats that I get 50% of my origination fee minus any related costs to the loan not charged to the borrower. ( Credit checks, appraisals and Franchisee fee) The employer is charging me their half of the FICA tax before my gross income. As an example I recently charged $ 2500.00 origination on a loan then and was paid $ 793.22 on it. Here is how it was broken down. ( i am a w2 employee)

$ 2500 – origination fee (BTW lender paid this with a rebate not the borrower)
-595 Franchisee fee
= $ 1905
/2
= 952.5
-40(credit report)
-59.64 ( Employer paid FICA )
= 852.86

852.86 is the gross amount the shows on my paycheck
then taxes are removed = another 59.64
Leaving me 793.22

Is this illegal? Does anyone know where in the tax code that it shows employer must pay half of the 15.3% FICA ?
Yes i forgot to put the SS in, but that’s not the point. if you really want you can minus another $ 8 for SS

5 Comments
  1. Reply
    the kid
    April 29, 2011 at 11:05 pm

    If the employer FICA is 59.64, then they take another 59.64, you have 2 issues:

    1. They are double charging FICA, maybe.
    2. They are not taking any other taxes, and you are going to owe a lot. Including your SS tax, which apparently is not being taken…

  2. Reply
    funkadelicia
    April 29, 2011 at 11:58 pm

    your employer matches the fica tax you pay. it IS in the internal revenue code.

  3. Reply
    hrblockerrolquinn
    April 30, 2011 at 12:12 am

    Mark: It should be 6.2% for Soc Sec and 1.45% for Medicare = total FICA with held.

    If it is more contact your HR dept and ask why and consider filing a complaint to your state and the IRS.

    This advice was prepared based on our understanding of the tax law in effect at the time it was written as it applies to the facts that you provided. Click on my profile to read more. Errol Quinn Enrolled Agent

  4. Reply
    the tax lady
    April 30, 2011 at 12:54 am

    Think of this from the employer’s point of view.

    They are splitting the commission with you and they want the full 50% to go into their pocket. The only way they can do this is if they construct the math to move the employer share of fica/mc to you.

    They can construct this formula any way they want.

    The real issue, is they can’t add the 2nd fica/mc to your gross wages.

  5. Reply
    tro
    April 30, 2011 at 1:18 am

    no, the employer cannot deduct his half of FICA from your paycheck
    your break down sounds more like self employment than a wage earner

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