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The employer portion of FICA is a deductible expense for businesses. The amounts withheld from an employees wages isnt deductible. However, the salary or wages from which you withhold FICA taxes is a deductible business expense.
However, employers cannot claim the credit for taxes on any tips that are used to meet the federal minimum wage rate. To claim the tip credit, you must fill out and file IRS Form 8846 with your business tax returns. Follow the instructions on the form to make sure you qualify and fill it out correctly.
Certain food and beverage establishments can use Form 8846 Credit for Employer Social Security and Medicare Taxes Paid on Certain Employee Tips to claim a credit for social security and Medicare taxes paid on employees tips.
If you end up paying more FICA tax than necessary because of the job change, you may claim the overpayment on Line 69 of your 1040 tax return.
If you paid FICA taxes but believe you should have been exempt from these payments, you may be able to get a refund. First, request a refund from your employer in writing. If your employer cannot refund you, then you can apply for a refund directly with the U.S. governments Internal Revenue Service (IRS).
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Also, you can deduct the employer-equivalent portion of your SE tax in figuring your adjusted gross income. Wage earners cannot deduct Social Security and Medicare taxes.
Your employer portion is deductible on your business tax return. If youre a corporation, you can use Form 1120, which is your corporate income tax return. The payroll taxes paid are deducted on line 17 of form 1120.
An employers share of the Federal Insurance Contributions Act (FICA) tax for Social Security and Medicare ( 2648) is an excise tax, so the employer may deduct it as a business expense if it represents an ordinary and necessary expense paid or incurred during the tax year in the conduct of a trade or business or for

irs 8846