DEFINITION of 'Excess Employer Withholding'

When one or more employers withhold more than the aggregate maximum amount of Social Security and/or railroad retirement contributions that should have been withheld from a single taxpayer during a taxation year.

Excess employer withholdings are reported on line 67 of Form 1040, and all Copy Bs of the taxpayer's W-2s must be filed with Form 1040.

BREAKING DOWN 'Excess Employer Withholding'

Excess employer withholdings arise either by human error, when employers make an error in calculating the amount of Social Security or railroad retirement contributions to deduct, or simply from the employee having more than one employer during the year.

If an employee has more than one job during the taxation year, then each employer will calculate Social Security withholdings as if the employee had only one job during the year, which will cause excess withholdings.

RELATED TERMS
  1. IRS Publication 515

    A document published by the Internal Revenue Service that provides ...
  2. W-4 Form

    A form completed by an employee to indicate his or her tax situation ...
  3. Withholding

    The portion of an employee's wages that is not included in his ...
  4. Withholding Tax

    1. Income tax withheld from employees' wages and paid directly ...
  5. Withholding Allowance

    An allowance an individual claims on a W-4 Form. A withholding ...
  6. IRS Publication 15 - Employer's ...

    A document published by the Internal Revenue Service detailing ...
Related Articles
  1. Taxes

    What is Withholding Tax?

    Withholding tax is the income tax federal and state governments require employers to withhold from employee paychecks.
  2. Taxes

    Understanding The U.S. Tax Withholding System

    Understanding the origins of our tax withholding system is crucial to getting the most out of it.
  3. Taxes

    When You Should Change Your Withholding Tax

    When there are major changes in your life, you should adjust your withholding to ensure you aren't paying too much in taxes.
  4. Taxes

    When You Should Change Your Withholding Tax

    Paying attention to your W-4 form, and making adjustments when necessary, is an important way to make sure your tax withholdings are correct.
  5. Taxes

    Tax Withholding: Good For Government, Bad For Taxpayers

    It's important to understand where that money coming out of your paycheck goes and why - after all, you earned it.
  6. Taxes

    Are You Paying Too Much in Taxes?

    Overpaying taxes amounts to an interest-free loan to the government. Here are some ways to avoid that scenario.
  7. Taxes

    The Purpose Of The IRS W-4 Form

    Why do you need to fill out a W-4 form and what does the IRS do with it?
  8. Taxes

    How Does the Withholding Allowance Work?

    A withholding allowance is an exemption employees claim that reduces the income tax withheld from their paychecks.
  9. Taxes

    Have Household Help? Don't Get In Tax Trouble

    Hiring household workers can be a complicated process. Know what the government requires so you can prevent penalties and problems down the road.
  10. Taxes

    Small Business Tax Obligations: Payroll Taxes

    Don't leave it up to your accountant - owners are ultimately responsible for fulfilling tax obligations.
RELATED FAQS
  1. What's the difference between short-term investments and marketable securities?

    Read about withholding taxes, how they work, and why there are both federal and state withholding lines on the typical American's ... Read Answer >>
  2. Where can I find a good withholding tax table on the Internet?

    Learn where to find the most current withholding tax tables and other information about how income tax withholding rates ... Read Answer >>
  3. What is the optimal level of withholding tax to enter on my W-4?

    Learn about the federal governments payroll tax withholding scheme and how it affects your paycheck, including how to determine ... Read Answer >>
  4. How can I calculate my withholding tax rate?

    Find out how to use the IRS website to estimate your proper withholding tax rate, and what you need to do if your information ... Read Answer >>
Hot Definitions
  1. 403(b) Plan

    A retirement plan for certain employees of public schools, tax-exempt organizations and certain ministers. Generally, retirement ...
  2. Master Of Business Administration - MBA

    A graduate degree achieved at a university or college that provides theoretical and practical training to help graduates ...
  3. Liquidity Event

    An event that allows initial investors in a company to cash out some or all of their ownership shares and is considered an ...
  4. Job Market

    A market in which employers search for employees and employees search for jobs. The job market is not a physical place as ...
  5. Yuppie

    Yuppie is a slang term denoting the market segment of young urban professionals. A yuppie is often characterized by youth, ...
  6. SEC Form 13F

    A filing with the Securities and Exchange Commission (SEC), also known as the Information Required of Institutional Investment ...
Trading Center