I received a settlement on overtime due. I requested that taxes would be taken out.
The school will not do that. This means that I would have to pay all SS and Medicare taxes, Mine and the schools.
Is the school required to take out taxes?
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Did the school issue form 1099-MISC or a W-2 form?
The school wants me to turn in a W-9 form.
I was wondering if there is a law that they are
required to take out taxes.
Are you paid on a W-2?
If you are an independent contractor they do not have to withhold taxes.
You will need to fill out a W-9 form if you: Classify yourself as an independent contractor or “freelancer.” Are not a full-time employee of the business. Will be paid more than $600 for work provided to the business.
An employer generally must withhold social security and Medicare taxes from employees' wages and pay the employer share of these taxes.
IRC § 3402(a)(1) provides, generally, that every employer making payment of wages shall deduct and withhold federal income taxes. Even if an employee is no longer employed at the time of the settlement payment, the payment is still deemed to be wages subject to tax withholdings.
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