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Question about SS - I am statutory employee and my employer withholds 7.5% for Social Securty - sm

Posted By: K on 2007-06-06
In Reply to: Social security is part of Federal taxes - Patti

I have only been a statutory employee for a couple of months (I was an employee with benefits with my prior company). My employer withholds 7.5% or "half" of the Social Security/Medicare 15% and I was told that will need to pay the other 7.5%. How does that work?  Thanks in advance!

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SE as in statutory employee at MQ nm
Statutory employee s/m

was statutory for years until MQ made us all go to regular employee status.  The one thing I loved about this job was freedom and they really took that away when they set us up as regular employees. 

I just took another job as a statutory employee and am working out my notice with MQ.  Love, love, love it.  Statutory is the best of both worlds for me since I don't need bennies.  The PTO was nice, but the freedom is worth so much more. 

means statutory employee...
The link someone gave above has a section on statutory employee (SE) but are still independent contractors
Doh! I thought SE was statutory employee. Sorry! NM
Statutory versus employee
Are there any advantages to being statutory versus an employee?  Anyone out there working statutory who can help?  Thanks!
What are the benefits of working as a statutory employee?
Statutory Employee vs. Independent contractor
I work for company "A" as an IC. I work on Dictaphone ichart platform. I make 9 cents a line. Good accounts. Good managers. I have been offered a job as a statutory employee with company B, still on dictaphone, still 9 cents a line. Is justifiable to make a lateral move to company B just for the sake of being an employee? Tell me pros and cons please! Thank you!
too many variants. are you employee or statutory? what office? what reports?
not my office.  you have to work so many weekend hours per pay period but you can choose the hours.
You an IC, statutory employee or employee?
That designation, and/or forcing the IRS to designate you, can make a diff. Are you a corporation? Partnership? You need WAY more help than we can give you.
Can a statutory employee draw unemployment if terminated from job due to restructuring of company?
I think it has to do with we dont pay the same amount of SS as an employee and employer do. nm
Excuse me but federal taxes are paid as employee by employee
The ONLY difference in IC is you pay the ENTIRE amount of the SS which is the 15.25%, as an employee you only pay 7.75%.  And you can easily make up that difference in deductions.  As an employee you just have someone else manage your withholdings and as an IC you do it yourself.  I have much more usable income being an IC and not an employee and I am strict about putting aside what I need to.  But everyone always says you have to pay your own taxes, well your employer does not PAY them for you -- except 7.75% of SS, they merely withhold it for you.  As an IC you are the employer. 
I know this has been asked before, but could someone please tell me the difference between statutory employee and just employee?  TIA
statutory vs IC SM
Thanks for clearing that up, all this time I'm statutory and thought I was IC. So does that mean I could apply for partial unemployment??
statutory vs. IC sm
 So if companies cannot dictate schedules to an IC, what about statutory employees?  I haven't discussed any of this with my company in 5-7 years!! Now they suddenly need an update, wherein they want to demand a set schedule....
Statutory employees too?
Is the new pay plan for statutory/IC employees too?  Cant you only switch to full time employee status twice a year, I think May and October or November.
statutory employees - MQ
When you have to take off, do you call in sick like you would a regular job?  In the past, I have and they have been quite unreasonable if I needed to take a day off for sick or personal reasons.  What upsets me is when there is no work, Im stuck, no work, oh well, but when I need to take off, I better be there, I better work or they have been quite nasty with me..What has been others response?  What have others done when they needed to take off?  Thanks for your response!
time off statutory
As they are quick to point out, as statutory you are NOT an employee and do not have empolyee benefits; they can't have it both ways, if you are IC and want to take off they really don't have a right to say anything; offices differ, but that's the bottom line.
Statutory status
When I worked statutory, they took out Federal, SS, and Medicare.
Any statutory employees out there?
I'll be starting a new job soon with a service as a statutory employee. I want to get on top of my tax situation now so that come April I won't get hit with a big bill from the tax man.

Any suggestions/guidelines for how much of each of my checks I should be setting aside for taxes? I know that my employer will be paying 1/2 of my Social Security taxes. What about the rest?

Thanks in advance for your help.
statutory status
I sent you an email.
Statutory, I guess
PT, no benefits, no paid vacation/holidays, etc. The only thing they do is withhold my state/fed taxes. I work hours and days specified by them.
Statutory status question....sm

if you are statutory status they take out federal, but not state taxes, is that correct?  What about SS? Thinking of taking a job on statutory status. Thanks.

Statutory MT/Independent contractor

Does anybody know of companies that still hire Statutory or independent contractors?  Since I take the standard deduction on my personal taxes I can no longer deduct my MT expenses and that's a major ouch.  Thanks for any help.



question for statutory workers
What percentage would you recommend setting aside from each check to cover your taxes?  thanks.
Does MQ have STATUTORY EMPLOYEEs anymore under new plan????

It does not mention statutory anything in my letter dated 9/2/05.

I see "newly defined FT employee classification w/flexible...

I see New Part-Time employee classification w/flexible ...

I see Opportunity for PTO for part-time employees and increased PTO of up to ....

but I don't see nuttin about STATUTORY EMPLOYEES.......Statutory is not part-time

I only work part time statutory and
full time with another company, I have a little bit extra withheld from my FT job each paycheck. I try to save 30% of my SE job pay to have on hand when tax time comes, even though I don't need that much, it covers me for everything plus after tax time I still have money in savings. It does depend a lot on your life though, what deductions you have, what tax bracket, etc. I am single with no kids, so I wind up in a higher tax bracket, therefore feel comfortable only when I save more.
Question for you Statutory Employees about retirement?
Any of you who work as an SE, have you ever looked in to an SEP IRA or an individual 401K for funding a retirement plan?  I  was just wondering if this is allowed, since the income is considered self employment income, but I have searched on the Internet and can't find anything to tell how the laws specifically apply to SE's.  I know if I was an IC there would be no question.  I already have a Roth IRA but the limit for that or a regular IRA is $4000 a year and that is not enough IMO for retirement, would love to be able to save some of my SE income tax-deferred.  I'm going to ask my accountant about it but figured out of courtesy I would wait til after the tax filing season winds down.  Just curious if any of you could help out in the meantime??  TIA.
Did you get the email this morning about the new pay plan for statutory employees. What is your
feeling. I know I cant struggle any longer or harder for money anymore. I agree. I am in all these different accounts to make lines, being QA'd on all of them and I just cant do anymore than what I am doing now so I am not sure what step to take next. I guess just wait and see what happens with the new pay plan. I hope that is not why they are hiring so many people because of concerns of a lot of people leaving because of it. Have you heard of more accounts being lost. I wonder where all these accounts are going.
What companies other than MQ hire statutory employees and are they hiring now.
social anxiety
Maybe we're loners.

Social anxiety, yes!!
So good to know I am not alone.  Just last night I was at karate class watching my kids and watching all the other moms interact.  This is how it always is for me.  Watching everyone else chat and laugh and have a good time.  I am very uncomfortable in social situations, and it seems like everyone else is not at all uncomfortable.  Feels like I am the only one in the world with this. I don't really want to rely on a med, but I don't know how to get past this.  All my neighbors are very close knit, I am the only one who never interacts or joins in on the get-togethers.  They must think I'm stuck up.  The truth is, I would rather take a beating than go to a block party!  Any ideas on how to get past this? 
social recluse
Why would anyone become an MT if they needed a lot of socializing? One of the main reasons I became an MT is lack of need for interaction with others.
I was a social recluse before this job.
...which I guess is why I have adapted so well to it.  I could never handle gossip or having to walk around pretending to be a happy "team member" in an office setting.  I watch "The Office" as a reminder as to how pukey that whole workin' in an office situation really is...but it is extremely funny when you aren't a part of that atmosphere anymore though.  I once worked with a female version of Dwight and it was so not funny.  Dwight=funny.
Social graces?
Been there done that. I have a Jewish doctor who mumbles and has a very strong New York accent - - and he has no social graces whatsoever - - burps, sneezes, coughs, sucks snot, eats with his mouth full -- YUK!!! The worst part is you have to listen again because you couldn't understand what he said the first or second time.
As an IC MT do you pay into Social Security? SM

I am an IC MT in California.  Does anyone know if we can pay into SS so that we get compensated for retirement?  As of yet, I have not but would like to in the future, if it is possible.   


Social Security
If I understand it right, assuming you are paying your federal taxes, you are paying Social Security.  It's something like 15.3% of your reported income, half of which you get to deduct if your income is under $102,000.  Gee, think I just barely fall under that tax bracket!  Google "self-employed social security" or something along those lines for a full explanation. 
I need the social interaction too -
I have been applying for jobs in town everywhere, not necessarily in the medical field, but I am also spoiled - I get to thinking about it and wonder whether I really want to work 20 hours a week for 6 dollars when I could make that in 3 hours at home...

So, I decided I was going to go back to college part time and get a degree in something that would pay me what I make in transcription and give me the option of getting out of my house and meeting people and becoming human again.

I loved my job for a long time, but lately it is taking a toll on my health and emotional welfare. I have a degenerative joint problem in which the doctor told me I would be better off as the door greeter at Walmart than sitting in this darn chair all the time... I am becoming withdrawn from the world, I have gained lots of weight, and just feel down and depressed all the time.

It's time for me to "get a life" before I get too old and have these same problems with age discrimination.
Did everyone get that email from Frank L. about the new pay plan coming out for statutory employees
this morning. Does anyone have any idea what this is going to be. I hope I dont lose money after all the years with MQ but we shall see.
On this new MQ rewards plan what exactly is it offering statutory employees and I suppose that that

is going to be the end of our quarterly bonus. My concern still is if there is no work how do you get any incentive if they lower the base rate. Sounds like employees will have a larger window to get their work done which means we all will be scrambling around for work at all hours.

I don't have much of a social life myself, but working on it
But being in my mid 30s I don't know if i'm going to click with anyone.  I just know I cannot do the online dating anymore!  Its so disppointing meeting the person after they've built themselves up AND have used the best picture ever taken of them in their entire lives on their profile.  Some people swear theyve had good luck, its about 50/50.  Its just not for me, very awkward and weird.  Thats why a reality TV show on it will be fabulous!  I'm just hoping its on tonight, supposedly ABC or something. 
There is a balance though, people who are too social
People who tend to spend a lot of time alone seem to be a little sad.  Just mix it up a little and find your balance.  For me, if i'm around people too much, I feel absolutely drained, but if i'm totally isolated, I feel trapped and sad.  So I socialize a couple times a week by taking classes, seeing family members, talking to neighbors, meeting up with a friend, and thats enough.  Just not everyday, maybe not even every two days!
They are. Many of them get social security checks for
mental illness or other issues. Some of them spend their social security checks the day they get them on booze and gambling. Some people CHOOSE to be homeless, if you can believe that. There are programs out there for them if they apply. I got to know the homeless population of our city pretty well at one of my former job. I could tell you some stories about some of those characters. One guy is homeless, but he could have his house and bank account, his military retirement, and his social security. Instead, he pushes a cart around town and sleeps on park benches. One woman runs down the street in nothing but polyester pants pulled up to her armpits in the bitter cold of winter. She has shoes and a coat, plus welfare and social security benefits.
As far as the social situation is concerned, get

him in cub scouts, community sports, etc.  This is really not an educational issue IMO and not the responsibility of the school system. 

The school system in most cases will try to do as little as possible for your child, but if you have a diagnosis, you can write an IEP and they have a legal obligation to follow it, whether they like it or not.   They also have to provide testing, like it or not, but we always had ours done on our own as I didn't feel like I would get an honest evaluation from the school system. 

the self-employment tax IS the 1/2 of your social security...
"On top of the self-employment tax, etc., you don't get the benefit of your company paying 1/2 of your social security so that is where most of your money at tax time goes to. "  please don't post if you don't know what you're talking about.
Anyone have social anxiety disorder?
Social Security will take it from your Schedule C

Social Security will take your earnings from your Schedule C that goes onto your 1040.  Whatever amount you declare and pay your self employment taxes on (15.75%) is the amount that they will use for your yearly earnings. 



My kids are far from being a social recluse...
I have some of the most social kids in the neighborhood.  Every day they are playing with other kids, and they are in karate as well.  My daughter has Tourette's syndrome and she said people at school were making fun of her tics.  I choose to protect her from those kids, but she is not at all socially isolated, only isolated from the kids who ridicule her...
If you are a social recluse, it won't make
you come out of your shell, but if your life has good balance, it should not hamper your social abilities at all. I definitely am a people person and have worked at home since early 90s.
How to get in touch with social security?
Went by the office this morning, unbelievable, just wanted to set up an appt but too many waiting. I tried to find the web site but had no luck therel. I have heard you can set up an appt that way, just need to know where to look. TIA.