client is railroad retiree age 61. He is working and received w2. He says that he doesn't have to pay social security as a railroad annuitant, and he wants the SS refunded. I can't find any info about this. Please help.
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Is the job that he got a W2 from a state or municipal job or private employer? If private employer he is subject to SS withholding. In MA most state and municipal jobs don't withhold SS, only medicare.Taxes after all are the dues that we pay for the privileges of membership in an organized society. - FDR -
If they never paid into Soc. Sec through their government job, why would they be entitled to benefits for that job? Why do you find that so amazing?Originally posted by FEDUKE404
So a career employee with the State of MA, for all intents and purposes, receives ZERO Social Security benefits exclusive of that associated with other non-government jobs? WOW!!!
Ask him where he got that info -- there is no apparent basis anywhere in the code or IRS instructions. If he is working for a railroad employer, as defined in ยง3231, then there would be no OASDI withholding, but you did not indicate that his employer was a railroad employer. The benefits he receives for his previous RRB covered employment has nothing to do with the withholding for his current job with a non-railroad employer. See Pub 15 for the exceptions to OASDI withholding.Originally posted by FRAZZLED
"You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe HowardComment
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I thought it was common knowledge that if you work a career in government jobs, you trade Soc. Sec. for a pension. You're right, if someone takes that MA state job and doesn't understand the trade-off they've made, then they have not done their homework."You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe HowardComment
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The Massachusetts State Employees Retirement System (MSERS) is a defined benefit plan in lieu of Social Security. Membership in MSERS is mandatory for all full time employees with benefits or those working at least half-time with benefits. New employees contribute 9% of gross salary, and 11% on salary over $30,000. These employee contributions are Federal tax-deferred. 1.45% is deducted for the Medicare portion of Social Security. State employees who entered state service before April 2, 2012 are eligible for a pension upon retirement at age 55 with 10 years of creditable service. Those who entered state service after April 2, 2012 are eligible for a pension at age 60 with 10 years of creditable service. State employees are eligible for a pension at any age with 20 years of creditable service.Taxes after all are the dues that we pay for the privileges of membership in an organized society. - FDRComment
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