W-2 with no SS or medicare deducted

[JoshinNC]

Client is just getting around to filing 2006 return. Brings me several W-2's, including one from a state run institution of higher learning where he was employed. They deducted federal and state income tax, but no SS or Medicare. Is this some type of special situation that allows for this? I'm very cornfused.

Why do they always wait until right before the busy season?!!

[JoshinNC]

Just found the answer!

TTB pg 5-18

[erchess]

TY for the Post Josh

Would the reference be to the 06 book which I have or the 07 book which I do not yet have?

[JoshinNC]

2006

Would the reference be to the 06 book which I have or the 07 book which I do not yet have?

sorry. haven't gotten my 2007 book yet, but it's on its way.

[Chief]

No SS or Medicare Tax on W-2

When I worked at a church owned unirversity a few years ago there were several of the faculty who were ordained ministers who elected to be treated as self employed. This sounds like a situation like that.

[Lion]

Teacher

My husband's a public school teacher in CT. His W-2 does not have any Social Security nor Medicare withheld, only income tax withholding. The teachers hired more recently have Medicare withheld but not SS.

[newbie]

My husband's a public school teacher in CT. His W-2 does not have any Social Security nor Medicare withheld, only income tax withholding. The teachers hired more recently have Medicare withheld but not SS.

Why is that?

[Snaggletoof]

Several Scenarios

Zero withholding under SS and Medicare can occur under several different scenarios. Church is one of them. Another is certain grant/research at a college or university. Another would be a child of a proprietor under age 18. This can happen any time the wages are not subject to SS/Medicare. See TTB for a chart to show what kind of compensation is subject to which kind of payroll tax. Don't have it closeby, so can't tell the page #.

[abby]

Ohio

Many years ago taught for one quarter at Ohio University -filling in for my graduate school teacher that was on sabbatical - and they did not withhold due to a state pension plan that essentially replaced SS withholding. When I finished my term I took my pension money (paid the 10% penalty, too - I was not yet savy in the way of tax law)

[Lion]

No SS nor Medicare

My hubby will not get any SS nor Medicare due to his teacher's salary, because CT has replaced those with a CT pension plan. (He does get SS and Medicare due to his years as a church music director, though.)

[joanmcq]

I have clients that work for a local community college district. Medicare w/h, but no SS. Same deal; the employees union elected a pension plan in lieu of SS.

[taxea]

W-2 with no SS or medicare deducted

Many government and state agencies are not subject to SS or medicare tax therefore the employees' W-2 will not show any SS paid. taxea