I have a client that is Mennonite and employees mennonites and the employer claims that as an employer he must pay the employer portion of the social security and medicare on the total wages but his employee is not subject to the social security and medicare being withheld.

I can not find any where in the social security act that this is the case. Does anyone know the rule or can you tell me where to find out how this should be taken care. I would like documantion for my files for future reference.

I need to process the quarter end reposts soon.

I would contact a CPA to help you, that would be fastest. Or, of course, the SS administration.

Apparently, the employer has a misconception regarding how the social security exemption works. In my accounting practice I have many Mennonite clients with Mennonite employees.

First of all, the employer must have filed and received approval for Form 4029 (available on the IRS website). Furthermore, each employee that claims exemption must have also filed and received approval for Form 4029.

If this has taken place, the employer IS NOT LIABLE for the employer portion of the social security/Medicare employment tax, and the tax is not to be withheld from the employee.

Most of the rules regarding this are summarized in the instructions for Form 4029.