Although Social Security taxes keep on going up, there are many payments that are not subject to Social Security taxes. Among them:
- Payments that are not compensation for services such as rents, dividends, interest, inheritances, and gifts.
- Company fringe benefit payments such as premiums for health and accident insurance and certain qualified educational benefits
- Wages paid to your under-age-18 children if you are self employed. (Wages paid by a corporation are subject to Social Security taxes.)
- The cash value of meals and lodging which is made by an employer for the employer’s convenience.
- Company loans to a stockholder or an employee when the loan is fully documented to show that it is a legitimate loan which will be repaid.