In determining whether an employee's accumulated earnings have reached the maximum amount subject to FICA tax deductions, the employer must use the calendar year, even if the business operates on a fiscal year ending June 30.

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According to the IRS, the maximum amount subject to FICA tax deductions is based on the employee's wages paid during the calendar year, regardless of the employer's fiscal year. Therefore, the employer must use the calendar year to determine if the employee's accumulated earnings have reached the maximum amount subject to FICA tax deductions.

In Determining Whether an Employee's Accumulated Earnings Have Reached the Maximum