SSA & Federal Tax Withholding

[murrayjune]

I am employed in Florida part-time by a Professional Association that is not withholding Social Security or federal taxes. What steps do I need to take to be sure that my earnings are reported to the SSA and how can I determine what percentage of my earnings need to be set aside for federal taxes? Thanks for your time.

 

[crager34]

Clarification.....edited

Much to the surprise of most people, most companies are not required to withhold, IF all is done correctly, from no-taxpayers pay. The term "taxpayer" is in regards to this question is found at US Code Title 26, Subtitle F, Chapter 79, (14) Taxpayer The term ''taxpayer'' means any person subject to any internal revenue tax. Again, if you are not liable to pay Income Taxes, you are a Non-Taxpayer.
If your not itemizing, the 1040A should work fine. The section where it asks the amount on the W-2 the company would normally give you, just put zero. It will all work out. If your company gives you a W-2 and has not withheld any Income Taxes, they messed up big time.

Also, wait for loku's response......he knows this stuff pretty well.

[Edited by crager34 on 01-31-2001 at 01:33 PM]

 

[loku]

Withholding

You can determine what percentage of your earnings should be withheld by filling out the appropriate tables in IRS Publication 919, How Do I Adjust MY Income Tax Withholding. Here is the link to the IRS site where you can download the Publication free.

If you claim exemption from withholding, your employer will not withhold federal income tax from your wages. The exemption applies only to income tax, not to social security or Medicare tax, so even if the exemption applies, there may be withholding for social security and Medicare.

You can claim exemption from withholding for 2001 only if both the following situations apply. 1) For 2000 you had a right to a refund of all federal income tax withheld be-cause you had no tax liability. 2) For 2001 you expect a refund of all federal income tax withheld because you expect to have no tax liability.

 

[crager34]

You forgot the link loku.

oops

 

[loku]

Link

Sorry I missed gthe link. Here it is: http://www.irs.ustreas.gov/forms_pubs/index.html

 

[murrayjune]

Thanks for the info. I will order the IRS publication to determine the amount to be set aside, as I am not exempt from federal tax. As to the question of Social Security and Medicare taxes, however, is my employer required by law to report my earnings? I'm still a bit confused on this point. Thanks again for your input.

 

[murrayjune]

Unable to access the link . . .

 

[loku]

Link

Try it again. I just tried the link and it worked. Sometimes the IRS site is slow because of heavy traffic.

 

[loku]

SS and Medicare

Yes, your employer is required by law to report your wages, whether or not they are subject to withholding.