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    ptin's Avatar
    ptin Posts: 1, Reputation: 1
    New Member
     
    #1

    Feb 19, 2009, 07:39 AM
    Social Security and Medicare payroll deductions
    I am a federal, state and city tax preparer and work for a small tax firm. I have noticed that there are certain employees who received W-2s and there is no social security nor medicare deductions made. They do, however, have FITW (Federal Income Tax Witholding) deductions. In two cases, they are full time employees of the local police department and work part time at sport venues in the same area. W-2s received from the sports teams show FITW taxes being deducted, but no social security nor Medicare deductions. I have checked with the local Social Security Office through an appointment with them and they have indicated that SS and Medicare deductions SHOULD be made from these W-2 wages. I can't figure out why no deductions are being made. Thanks
    Emland's Avatar
    Emland Posts: 2,468, Reputation: 496
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    #2

    Feb 19, 2009, 07:53 AM

    I use Daceasy Payroll software for our office.

    When I set up a new employee I can exempt them from FICA or SS or Medicare if I check a particular box.

    Perhaps their software is not set up properly or the person using it doesn't know how to use it.
    Wildsporty's Avatar
    Wildsporty Posts: 445, Reputation: 38
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    #3

    Feb 24, 2009, 12:16 PM

    Some employees have private pension plans and do not pay into or draw from the Social security plan. These employees are exempt from paying in social security taxes.

    Some employees have reached the limit needed to pay in social security and if that happens no social security will be withheld.

    There may be other reasons, unless you know the structure of the company and the employees retirement structure than you would not know if it is being done correctly or incorrectly.

    Shirley
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
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    #4

    Feb 24, 2009, 12:54 PM

    Some police, ministers and others as noted have separate retirement plans.

    Also dot hey have two W2's one for their regular police work, and a 2nd from the spots venue.
    I know when I worked "OFF DUTY" that was normally actually paid as a 1099 but perhaps they pay them on a W2

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