Lack of Withholding Tax on paycheck for retiree
I am a 67 year old retired health care professional who decided to go back to work as a PRN (as needed employee without benefits). Since the beginning of the year I’ve worked a total of ten days so far this year. When i received my check no withholding tax was taken out. Does not taking out for withholding have anything to do with being retired or on Social security.
Terry Says
It means they have classified you as an “independent employee” and that you must make your own Social Security and income tax payments. This is the time to consult a CPA who will set you up making quarterly estimates of the amount of tax you will owe. It costs the employer less to do this –and it will cost you a bit more in taxes.
