I have client with about 5K differance between box 1 & box 3 income(box 1 is 5K bigger than box 3), not due to paying up his SS tax. He is a installer of some sort and his employer doesn't tax his commissions. My question is am I suppose to include in his return somewhere an amount for unpaid SS tax i.e. SE tax? I have not come accross this before. I guess this the balance for another one I got this year where a guy doen't SS tax at all, he work for a government agency. Thank you for any help.
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In the second instance some govt employees are exempt from ss tax ,however they do pay medicare tax.
As far as the current w2 there seems to be a problem. SS tax is supposed to be withheld from commissions. What is the amt in box 5Everybody should pay his income tax with a smile. I tried it, but they wanted cash -
Box 5
Amount in Box 5 is the same as Box 3. This is a small company and perhaps there was an error on the W-2'sComment
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Most likely that is the problem. Send him to get a corrected w2Everybody should pay his income tax with a smile. I tried it, but they wanted cashComment
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Silly question...
Did client reach the cap for Soc Security wages?
BillComment
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Silly Question
Bill
He is a long way from capping out SS income. I think I will do as Brian says and have him get a corrected W-2. Thanks for the input.Last edited by LawrenceGR; 03-07-2006, 03:27 PM.Comment
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New Info
I talked to the owner of the business she told me her software printed up the w-2's that way. She said she has always done it that way. I am just going to send it through that way, I have given her almost a week to get back with me and she hasn't. Anyone have any other ideas?Comment
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Ask the client for his last pay stub. That may have todate figures for comparison.Originally posted by LawrenceGREverybody should pay his income tax with a smile. I tried it, but they wanted cashComment
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