Even though they have not reached the cap. How does this effect the filling of their tax return? Does it have something to do with working for the gov or a hospital...???
2007-03-01 02:47:35 · 2 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ Other - Taxes
Some employees hired by federal, state, or local governments to respond to an emergency are not subject to social security and Medicare taxes. Long-term or permanent federal, state, or local government employees who perform services in emergency situations, such as municipal firefighters, are not eligible for this exception.
Railroad employees are exempt from Social Security taxes because they have a similar program that is set up for them.
2007-03-01 03:12:58 · answer #1 · answered by R Worth 4 · 2⤊ 0⤋
Some people are exempt from Social Security -- mostly teachers, clergy and some railroad workers. They are covered by other plans that provide similar benefits and have been exempted.
Anyone who is paid as an independent contractor won't have anything withheld from their pay; they must file Schedule SE and pay their full Social Security and Medicare taxes themselves and normally are required to make quarterly estimated tax payments to the IRS and their state if the state has an income tax.
2007-03-01 03:37:44 · answer #2 · answered by Bostonian In MO 7 · 2⤊ 0⤋