MONDAY QUIZ: Payroll Withholding for Employees Receiving Social Security Benefits
Take a look at the following quiz and test your knowledge by reviewing the answer listed below. Good Luck!
If you hire a worker who is receiving Social Security benefits, you (do /don’t) withhold Social Security tax from the worker’s pay.
Which is the correct answer?
A. Do
B. Don't
THE ANSWER
The correct answer is A, "Do". The employer is required to follow the withholding requirements for social security and Medicare taxes even if an employee is collecting social security benefits. Per Chapter 9 of Publication 15, Circular E, Employer’s Tax Guide, employee wages are subject to social security and Medicare taxes regardless of the employee’s age or whether he or she is receiving social security benefits.”
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