When an employee's earnings are greater than FICA base limit during the calendar year, no more FICA-OASDI tax is deducted from earnings.

Question

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Once an employee's earnings exceed the FICA (Federal Insurance Contributions Act) base limit for the Social Security portion (OASDI - Old-Age, Survivors, and Disability Insurance) in a given calendar year, no further OASDI tax is deducted from their earnings for the remainder of that year.

When an Employee's Earnings Are Greater Than FICA Base Limit