Teachers and Social Security

[Larmil]

Client is a teacher in a public school system. In the past she was not subject to social security tax. This year she only worked part time so the district started withholding SS tax. I believe the W-2 is wrong but I cannot figure how they got the numbers. The W-2 numbers are:

Box 1 - $26,155

Box 3 - $39,646

Box 5 - $30,127

Box 12 - Code E - $3,972

Box 1, 3, and 12 jive, but where did the figure in Box 3 come from? It makes no difference on the Federal but it does on the state (MO). Client questioned the large amount of Social Sec tax withheld and was told that was the way they had to do it.

[erchess]

My Opinion

If the Social Security reported as withheld was in fact withheld and sent in and is the correct percentage of the figure in Box Three, then there may still be an error but the cost of getting that error corrected is likely to exceed the benefit of doing so. The cost is likely to include legal fees for suing as well as loss of her employment with and a bad reference from the school system.