Does FICA include partnerships in its definition of employer?

FICA, which stands for the Federal Insurance Contributions Act, imposes payroll taxes on both employers and employees to fund Social Security and Medicare. The definition of “employer” under FICA does indeed include partnerships. This means that partnerships are subject to the same obligations regarding payroll taxes as other types of employers, such as corporations and sole proprietorships.

In the case of partnerships, the partnership itself is regarded as an employer when they employ individuals. As a result, they must withhold and pay FICA taxes for their employees, just as any other employer would. This applies regardless of whether the partnership is a general partnership or a limited partnership, thereby encompassing all partnerships under the FICA umbrella.

Understanding this inclusion is crucial for partnerships that have employees, as they must ensure compliance with FICA regulations regarding withholding payroll taxes and reporting. Other options like stating that partnerships are not included, only certain types are included, or only if they have employees would imply limitations that do not accurately represent the broad definition of employer under FICA, misleading parties responsible for tax compliance.