Exemption from Taxes

mhaney

We have someone who we have been paying contract labor to do some courier work on a temp basis... we are keeping him on now so we need to convert him to an employee so he will be covered under our Worker's Comp coverage...since he is at full retirement age he says he doesn't have to pay ANY taxes. I know there is an option to claim exempt on the W-4 for withholding but as far as I know there is not an exemption from paying Social Security & Medicare wages....am I missing anything?

NaeNae55

You are correct. My husband is retired and when he takes a job he has to pay social security taxes. Tell the employee they can file for a return at the end of the year if they choose to, but you are required by law to withhold.

mhaney

Thanks for the reply!

Dutch2

Yep... what NN55 said.
We have a few employees over retirement age and they still have to pay social security taxes.
Good luck,
Dutch2