Retirement tax questions

Always.... possible complications

 

Well...one thing to be careful of, is that if it is a W-2 job, you can only have income taxes withheld that are only the specific amount you would normally get AFTER  SS and Medicare taxes are first withheld.  So is the $50, before, or after SS and Medicare withholding (and will it always be that $$ amount). 

 

So you might need to select some lower even $$ amount...like maybe $30 or $40...and be resigned to collecting the difference between the $50 gross and the (SS +Medicare + income tax) withholding.  The W-4 only can only specify the income tax withholding part.

 

....also you need to ask the employer if the state requires withholding too.  Sometimes certain states will allow a W-2 provider to not withhold any state income taxes, other states may require a certain % no matter what the level of $$ being payed to a W-2.  (though its true I don't  know of specific states that require a % in all instances )

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*