ITG FAQ #2 Answer-On what portion of an election worker’s payments is FICA required?
For 2011 and 2012, if an election worker earns $1,500 or more in a calendar year, all the worker’s earnings, including the first $1,500 are subject to the FICA taxes. If it is anticipated that an election worker may earn $1,500 or more in a calendar year, a tribal government employer may choose to begin withholding FICA taxes on the first dollar earned. If the worker then earns less than $1,500 in the calendar year, the worker would be entitled to a refund of the erroneously withheld FICA taxes. If the employer chooses not to begin withholding until after the worker earns $1,500, the employer would be liable for the total amount of FICA taxes due. The employer could recover the employee’s share of the FICA from the employee by withholding from future earnings or by other arrangements with the employee. The $1,500 dollar limit is applicable for years 2009-2012 and is subject to change annually.