Turbo Tax won't let me file a w2 with SS retention = $0

[opallottap]

Not household employees, part time -as needed- employees

[Texas Roger]

Not aware of any exception to withholding except for household employees with income below $2000.

[SweetieJean]

Household employees = $1900 for 2016.

[Texas Roger]

@SweetieJean These IRS instructions and also an SSA publication say $2000 for 2016. Am I reading it wrong? <a rel="nofollow" target="_blank" href="https://www.irs.gov/instructions/i1040sh/ar01.html">https://www.irs.gov/instructions/i1040sh/ar01.ht...>

[SweetieJean]

It says $1900 here:
<a rel="nofollow" target="_blank" href="https://turbotax.intuit.com/tax-tools/tax-tips/IRS-Tax-Forms/What-Is-Schedule-H--Household-Employmen...>

[Texas Roger]

Here's the SSA pub: <a rel="nofollow" target="_blank" href="https://www.ssa.gov/pubs/EN-05-10021.pdf">https://www.ssa.gov/pubs/EN-05-10021.pdf</a>  Maybe TurboTax has not updated that tax topic.

[opallottap]

Don't you have to earn a minimum per year to pay Social Security taxes?

[Texas Roger]

I'm no expert on this but I don't find anything in IRS publications that excludes low income employees (other than household workers) from social security and medicare withholding. See p. 23 of this publication for employers: <a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-pdf/p15.pdf">https://www.irs.gov/pub/irs-pdf/p15.pdf</a>

If you are self employed, you are not required to pay self employment taxes on income of less than $400.

[opallottap]

Thank you

[SweetieJean · Accepted solution]

I'm still not following you.

The number of exemptions the employee claimed on his/her W-4 does not affect the Soc Security or Medicare withholding, just FIT and State income tax.