Why was no social security withheld? Is the taxpayer a public employee or teacher who doesn't pay into social security?
"Employees submitted W4 with very low income after deductions for 2015."?????
2015? 2016?
The employees submitted a W4 with a very low projected income after deductions.
When the yearly income is too low, social security and medicare is not withheld. At least that was my understanding. Part time workers often time fit that case.
Well, when I try I've got two pop ups warning me that withholding cannot be $0 and will not accept the entry.
Contact your employer and find out why they didn't withhold social security and medicare and request they issue a corrected W-2 if it should have been withheld.
Not household employees, part time -as needed- employees
Not aware of any exception to withholding except for household employees with income below $2000.
@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.html</a>
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-Employment-Taxes/INF26168.html">https://turbotax.intuit.com/tax-tools/tax-tips/IRS-Tax-Forms/What-Is-Schedule-H--Household-Employment-Taxes/INF26168.html</a>
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.
Don't you have to earn a minimum per year to pay Social Security taxes?
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.