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    susane's Avatar
    susane Posts: 1, Reputation: 1
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    #1

    Apr 20, 2011, 10:33 AM
    Vermont
    I am providing private care and I receive my gross amount each week for my income. I awil be responsible for my own dfederal & State taxes to be paid. The client will be paying my SS, so I will not have to pay any SS, Medicare Tax on this income.
    This has never happened to me where someone pays all my SS. Is there a special form I can recive from their accountant to verify all this?
    What amount of the total ta they pay will actually go to my SS fund for retirement?
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
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    #2

    Apr 20, 2011, 11:09 AM
    Quote Originally Posted by susane View Post
    I am providing private care and I receive my gross amount each week for my income. I awil be responsible for my own dfederal & State taxes to be paid. The client will be paying my SS, so I will not have to pay any SS, Medicare Tax on this income.
    This has never happened to me where someone pays all my SS. Is there a special form I can recive from their accountant to verify all this?
    This is not uncommon in the home care industry - my daughter has this same set up for her nanny. Your employer is required to contribute 4.2% for SS and 1.45% for medicare, and if your employer is covering your portion as well then those figures are doubled. Note - the SS rate has been temporarily reduced from the normal 6.2% as part of a tax bill passed in December. There is no special form where you can see this, although you could request your employer to give you a copy of the filing I suppose. Also each year the SS administration mails out a summary of SS wage history to everyone - that will verify it for you.

    Quote Originally Posted by susane View Post
    What amount of the total ta they pay will actually go to my SS fund for retirement?
    There is no such thing as your own "SS Fund" - it's not like an IRA or 401(k) plan where you build up a balance. Instead you are credited with having earned an amount of SS wages, and over time you build up "credits" based on your history of SS wages that ultimately determines your benefits when you retire.

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