Employer charging me for employer FICA.?
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
-59.64 ( Employer paid FICA )
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