I noticed back in April that my pay was much lower than normal and then I noticed I started paying Medicare and OSRA (or something like that) then. Now this is strange because I'm a part-time worker and full time student...what's the deal??? Is this a mistake?? I'm not knowledgeable of taxes or anything so please help! thanks
2007-06-08 01:31:39 · 6 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
If your pay was suddenly a lot lower, I would go to the employer with my pay stub and ask about it.
It is possible that before April, you were paid from college workstudy funds. Students paid this way do not pay Social Security or Medicare taxes. When the workstudy funds ran out, maybe you were switched to regular payroll.
The Social Security is a 6.2% deduction out of your pay. Medicare is 1.45%. So take a look and find those deductions.
If federal income taxes are being withheld which are going to be more than you owe, submit (or resubmit) Form W-4 so that less income taxes are taken out.
Any other deductions you do not understand should be explained to you by your payroll department.
2007-06-08 05:42:00 · answer #1 · answered by ninasgramma 7 · 2⤊ 0⤋
FICA and Medicare are automatically deducted from every paycheck, and are not refundable to the payor. With very few exceptions, this applies to every worker within the United States. Postal Service workers are exempt, as are a few others, since they pay a similar deduction into a different 'retirement program'.
2007-06-08 09:27:05 · answer #2 · answered by acermill 7 · 0⤊ 0⤋
With very few exceptions everybody pays FICA/MEDICARE on earnings. Total is 15.3%; you put in half and the employer matches it; so you are contributing .0765% out of every dollar you earn. There is a ceiling at the 100,000 dollar level where the FICA phases out; but I doubt you or I will have to worry about it. Come the day you retire and start drawing social security the total amount you pay in is used to compute your monthly check.
2007-06-08 10:50:42 · answer #3 · answered by acmeraven 7 · 0⤊ 0⤋
Everybody (except for college work study) pays FICA from day 1 when they start a job.
I have been paying it for almost 25 years.
2007-06-08 08:50:28 · answer #4 · answered by Wayne Z 7 · 0⤊ 0⤋
Please note -- the government comes after the regular people first.
1) 7.65% comes out of your check so long as you BREATHE!
2) Your employer matches that 7.65% as well.
3) The fact that you are a student has nothing to do with the fact that you STILL gonna pay that "social security and medicare tax" to fund someone else's retirement in the short-term and to fund your retirement in the long-term.
4) WELCOME TO THE REAL WORLD!
2007-06-10 07:34:08 · answer #5 · answered by DaMan 5 · 0⤊ 0⤋
Everybody pays FICA. It's always been withheld from your pay, you just weren't paying attention.
2007-06-08 10:43:37 · answer #6 · answered by Bostonian In MO 7 · 0⤊ 0⤋