Retiree and FICA

[Newlydivmomto4]

What is the name of your state (only U.S. law)? Kentucky

I have an employee asking about why I am withholding FICA (oasdi and medicare) from his check. He is retired and receiving social security, full retirement age. He does not think he should have the oasdi portion withheld.

I know if an employee is a retiree of a private retirement like KTRS here they don't have to pay oasdi if they work for another employer who participates in the same retirement plan. However, this employee is talking social security.

 

[AdjunctFL]

What is the name of your state (only U.S. law)? Kentucky

I have an employee asking about why I am withholding FICA (oasdi and medicare) from his check. He is retired and receiving social security, full retirement age. He does not think he should have the oasdi portion withheld.

I know if an employee is a retiree of a private retirement like KTRS here they don't have to pay oasdi if they work for another employer who participates in the same retirement plan. However, this employee is talking social security.

I assume you're paying him wages for services, not a pension.

Advise your employee that there is no exemption from FICA if you are retired, over a certain age, collecting social security, etc. If he is being paid wages, you must withhold FICA. (If he thinks he is exempt from FICA have him show you his source. He won't find one.)

 

[Newlydivmomto4]

I assume you're paying him wages for services, not a pension.

Advise your employee that there is no exemption from FICA if you are retired, over a certain age, collecting social security, etc. If he is being paid wages, you must withhold FICA. (If he thinks he is exempt from FICA have him show you his source. He won't find one.)

Thanks. I am thinking his "source" are other teacher retirees in my state who are public sector that have a separate retirement system. My employer is private so we only have social security.

 

[AdjunctFL]

Thanks. I am thinking his "source" are other teacher retirees in my state who are public sector that have a separate retirement system. My employer is private so we only have social security.

Even if a retired teacher worked for you, you would be required to withhold FICA taxes because you're not a public entity exempt from FICA. He may, at best, be thinking of a retired teacher called back to work for the school system.

 

[Newlydivmomto4]

Even if a retired teacher worked for you, you would be required to withhold FICA taxes because you're not a public entity exempt from FICA. He may, at best, be thinking of a retired teacher called back to work for the school system.

Kentucky has an alternative retirement system for public school teachers that includes public universities. We are one of the few states that has this type of program.

 

[FlyingRon]

Kentucky has an alternative retirement system for public school teachers that includes public universities. We are one of the few states that has this type of program.

AdjuctFL is still correct. If he was working for an employer covered by the non-SS retirement, then that employer would not be collecting FICA. If he works for anybody else (even if he was drawing a pension from a non-SS plan), he needs to be paying FICA.