Medware and state taxes
Posted By: Disgruntled on 2006-05-26
In Reply to: Hopefully this person will file for unemployment in their state and - read
I was told by someone in the IRS that Medware should be taking out state taxes in my paycheck, but nothing has been done about this, and I have to pay my state taxes myself. I don't know how they get away with this.
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Medware & State Taxes
Actually, this is a common practice for many companies and well within the law. They can't take out your state taxes in Florida, (a) because Florida doesn't have state income tax, (b) you don't live in Florida, and (c) it would be quite a headache when tax time rolls around and you have to claim two states that you work in, even though you actually don't. I have paid my own taxes for years.
Plus, Medware states in their email that was sent to me: At this time today, if you are considering employee status we DO NOT hold out (state) income tax. We are a Florida-based company and Florida does not have state income tax. This will need to be filed by you individually depending upon what state you live in and whether or not you have a state income tax.
They must deduct FEDERAL taxes.. NOT STATE taxes.. if they took out state taxes.. it would be FLORID
which would only have to be refunded to you for you to pay YOUR state what you owe them which is nothing but a pain... be glad they weren't handling your state tax.. and I think in this case.. if someone at the IRS told you they have to deduct YOUR states taxes.. it is that person who is uneducated... they only have to deduce federal income tax
If company is in state that has no state taxes
they are not required to take out state taxes. It's enough to keep up with your own state tax law code, could you imagine having to stay abreast of 49 other state tax codes? The cost would be huge and ultimately passed on to us by lower line rates. Regardless of who owes the tax, someone has to pay it. Just a matter of convenience I guess.
state payroll taxes
My previous job was in the payroll department for a fairly large manufacturing company. We had employees in about 18 states other than NC. We had tax tables from any state that we had employees, and we were required to withhold based on those tables. We did have one that did not require us to withhold taxes but it wasn't Florida.
No. You have the taxes taken out for the state that you live in.
If you do not live in the state where the company is located, that state income taxes do not apply to you--only the state where you live applies to you. You do NOT work in the state where the company is headquartered. Ask any CPA and just look at the website of the state. You should not have taxes taken out for a state you do not reside because you do not have to pay taxes for a state where you do not reside. You only pay for a state where you live.
They also do not withhold state taxes and
there is no way that is legal in my state as it is my state law that if you are employed by an employer outside the state, that employer MUST withhold state taxes. My state has been investigating them for awhile but I still don't know what happened with that, but I will ask.
Reminds me of another company who used to withhold money for our insurance premiums. Well guess what...when we needed to use our insurance, found out there was none! They too were reported (this was not MW), but all we got was our money back that we paid for the insurance. Sad huh?
These companies are pathetic and I have no respect for this industry whatsoever.
They should take out state taxes for the state
nm
SE doesn't take out federal and state taxes, only
x
If you are employee and have state taxes, your employer should take out.
I reported a company to my state, who clearly defines on their internet site that if an employee lives in our state yet works for a company in another state that might not have state taxes (for instance, Florida), the company in Florida HAS to comply with taking out state taxes.
From what my state told me, they fined the company heavily for not having deducted state taxes. Check with your state first and see what the law is.
This only applies to employee though.
They refuse to deduct state taxes, if that's
nm
They take out for FICA. You are responsible for state and fed taxes. nm
Does your MTSO take out all federal/state employee taxes? nm
nm
I have never had a problem with an employer withholding state taxes except with one
employer. They say they do not have to but my state says they do. Just the fact that my state sent me back all their late fees because I refused to do the job of the employer tells me I was right in waiting to pay until tax time. That brought it to the attention of my state. I can't wait to see the get the penalty and interest my state will charge them. I know it will take some time for the state to research how many work in my state (and I know at least six minimally), so I will just sit back and wait. My state does not give money back to you readily. LOL High state taxes so when you get your late fees back, you know then the employer being fined is only a matter of time.
I work for a company in Florida too who gladly pays state taxes because
they know it is the law.
I called my state IRS and was told in no uncertain terms Medware had to
nm
Unless something has changed, health insurance rates vary state by state, so we may not have the
info you need. I'm an IC so I don't have benefits.
You are correct. The state that rules is the state the employee lives in.
My state laws has is spelled out in their Code. If another state does not withhold, they are fined heavily and if they don't withhold for years, their fines are pretty bad. I worked for a Florida co that did not withhold income tax for my state even after I brought it to their attention in the state code. They kept saying that they would eventually and never did. After two plus years and when I left, I made it known to my state all the conversations, the state refunded me all late fees they charged me and then said they were going after the company in Florida because they had many employees in our state. They deserved it. They knew better.
The state you live in or the state where the MTSO is located? nm
nm
Not state by state, federal labor law - sm
and you don't have to be asked. If you work it, asked or not, they have to pay time and a half OT rate for hours worked over 40 in a week.
Taken right from U.S. Dept of Labor -
An employer who requires or PERMITS an employee to work overtime is generally required to pay the employee premium pay for such overtime work. Employees covered by the Fair Labor Standards Act (FLSA)MUST receive overtime pay for hours worked in excess of 40 in a workweek of at least one and one-half times their regular rates of pay. The FLSA does not require overtime pay for work on Saturdays, Sundays, holidays, or regular days of rest.
Extra pay for working weekends or nights is a matter of agreement between the employer and the employee (or the employee's representative). The FLSA does not require extra pay for weekend or night work or double time pay.
Different state to state. You would be surprised to find
IC can be defined differently state to state. Even the IRS cannot come up with a definitive set of rules. You would be surprised how many ICs actually get unemployment in some states. If the unemployment claim form asks specifically if you are an independent contractor, do not lie, but if it does not, do not volunteer it. Let the company prove you are a true IC according to the rules of your state. All you lose is a few minutes filling out the claim form. I would only do it as a last resort. If you can find work fast, by all means go for it, but the way things are now with all the VR and off-shoring, it is a backup if you cannot find work. No one should go hungry because they are afraid to file for Unemployment as an IC.
It varies from state to state
nm
Varies from state to state
My own state recognizes partial unemployment, too, when your work gets cut down to half of your regular workload/income.
Taxes
When you work for someone you STILL PAY YOUR TAXES, your employer does NOT except for the 7.5 SS. Look at your pay check, are not taxed withheld??? As an IC you are RESPONSIBLE for withholding your own taxes and sending them in but either as an employee or a IC -- you still PAY them, except for the 7.5 of social security. Sorry but it bugs me when people say as an IC you pay your own taxes as it is incorrect -- you are RESPONSIBLE for paying your own taxes. With your write off's, flexibility and most of the time more pay it does cover the extra SS you have to pay. Been doing it for almost 20 years.
SE and taxes
I'm seriously considering accepting a job as an SE. The employer holds and pays social security but not income tax or other federal tax. My state has no income tax, but I was wondering if I would have to pay Medicare tax as well as withholding tax. Also, is there a way to pay via IRS monthly or bimonthly rather than quarterly. This is new to me and I'm a little spooked. If I would have to pay Medicare, does anyone know what percent that is. I understand I should hold or pay 25% roughly for withholding. Help please. 
Taxes
Absolutely and you do not have to be only an IC for this write off. Even if you are an employee expenses that you incur in order to perform your job which are not reimbursed by your employer are all eligible. I write off my ink cartridges, printer paper, internet service, etc.
Taxes
I really believe a sharp CPA is worth every penny.
Taxes
It is my understanding that if the state your company is located in does not have a sales tax - then they do not handle the state taxes period. Examples would be companies located in Florida and I think Tennessee.
Taxes
The cost is the same to the employee either way, it is just the convenience of not having to deal with it. Whether they deduct it out of your check and pay it or whether they give you the full amount and you deduct it - either way you owe it and have to pay it. Of course it is less convenient to file quarterly taxes. According to my CPA the employer does not have to withhold if their state does not have state income tax. The employee is responsible for paying quarterly in order to avoid any late fines. Maybe each state has their own standards but I can't imagine all these companies in states without state taxes would be getting away with not withholding if that were the case. By the way, having more held out of hubbies return sounds like a good idea to me if you are filing jointly anyway.
Taxes
I wonder then, since this seems to be different state to state, if some of these companies would legally be able to just not employee MTs from states who require the employer, regardless of location, to handle the state taxes. I could see them thinking the paperwork/accounting costs would not be worth it.
SS taxes
just taken out of pay, you have to use bayscribe, but certain programs they can import into bayscribe and yes, they will if asked provide sample reports.
taxes
Yes, they do.
IC Taxes
For some IC is better, I guess it depends on your circumstances. My husband is on disability so our income is very low, we clam the mortgage interest our home and we never have to pay in. I do have to pay 1% local tax each year but that is never more than $100.00 or so. As IC you are able to write off Internet expenses, paper, ink, ref. books ect. For me it is just better. Plus as IC I feel that I have more control, but that is jost my opinion. 
Taxes sm
If you are an IC then you have to pay your own taxes. There is no difference. You would just convert the $$ into US (your bank does this) and keep track of the actual US dollars you made and then claim it on your tax return. Hope this helps.
As an SE..do they pay any taxes..sm
or are you responsible for paying all your taxes yourself?
taxes
Are there are any Radiology jobs that pay part of taxes?
Taxes
The post above is not true. As an employee the employer pays one half of your federal and state (if you have them) taxes. It is not just half of the FICA they pay. It is half of the total federal (Fed, FICA, Medicare.) I was an MTSO for 8 years and looked into making my ICs employees and just couldn't swing it plus try to offer benefits.
taxes
Bravo!!! Obviously, the OP either has grown children or no children. It takes an incredible juggling act to raise kids these days. Most parents in our income range need all the help they can get. Just having custody of a 2-year-old for 6 weeks has taught me that. Daycare alone is taking all I have. You're right - never underestimate the people with authority in nursing homes. My son reminds me of that sometimes - I only hope he is joking! Have a good Monday!!
taxes
I realize that. What I am concerned about is Social Security and how that works and how do I decide how much taxes to hold out of my check to be sure I am covered at tax time? Just looking for some preferences here from people who have done it both ways. Thanks!
After taxes, it's a lot less than $100.....
Skroo that!
IC and taxes
I have just accepted an IC position. I have never worked as an IC before. Do you set aside your tax money and pay it quarterly or at the end of the year. (for next year) Any advice on this would be much appreciated. Thanks!
IC and Taxes
Thanks for the information. I was thinking it would be best to pay quarterly. I have my city taxes set up like that already. Do you know how to set up state and federal taxes to be quarterly?
IC taxes
You don't pay any more taxes as an IC than you do as a regular employee. You pay your taxes differently and pay more up front than you do as an employee, but on the back end when you do your taxes it all evens out.
You have to pay your regular federal withholding. It's the same rate that you would pay based on 0 deductions with a regular job. You can use the tax table http://www.irs.gov/pub/irs-pdf/p15.pdf to figure that out. Then you have to pay the whole FICA tax of 15.3%. Half of that is the employer's portion, which you don't have to pay as an employee. The other half and the federal withholding you already pay as an employee.
When you do your taxes at the end of the year, you enter half of your self employment FICA tax on line 27 (along with a schedule SE) and you deduct it from your gross income.
So you have to pay more up front, but you don't pay more in the long run.
I pay 25% to the feds every time I get paid and I pay 5% to the state every time I get paid. A lot of people like to do it quarterly, but I like to get it over with so I don't think I have the money to spend.
You can make your federal tax payments on line here: https://www.eftps.gov/eftps/ . You have to sign up with them and then they mail you paperwork with online passwords and stuff, so it takes about a week to get actual access, but it's worth it. It's where I pay all of my taxes. Your state probably has an online presence where you can pay your state taxes as well.
I've only ever been an IC so I can't compare working as an IC to working as an employee on production.
rather just under 100,000 a year, after taxes
please. transcribing for a national??
Employees pay taxes too
You are only paying 7.5% more due to SS, and you should be able to find 7.5% worth of deductions to take. If you were an employee you still pay the taxes they just withold it from your check.
withholding taxes? sm
I am fairly new to the IC status. Approximately what percentage should I be putting away for taxes (federal, state and local). I know it varies, but just a baseline amount please if anybody can help me out? I would like to start this with the new year. Where do you put the money, your regular savings account or open a separate account? TIA.
K
Quarterly taxes
I think you just have to make up the difference come tax time. When I called H&R Block, they said the easiest way is to estimate your income and make 25% quarterly payments. So, that is what I will do. Your tax preparer can provide you with a quarterly schedule with dates and amounts, as well as remittance slips and addressed envelopes to make your payments.
HTH - K
Benefits/taxes
You end up paying for these one way or another, if you are an employee you get less per line and do not have the choice of what health insurance, or when to take time off or how to pay your taxes it is all done for you. As an IC you get more per line and you chose which health insurance company to have, when you take time off and how to invest your money so you don't pay as much taxes. Sorry like I have always said even as an employee you pay for the benefits it is just that someone is handling that for you for a price -- lower wages.
If you are an IC NO taxes are taken out. If you are married have
your spouse have extra taken from their check. How much to save you if you need to pay quarterly depends on your income bracket, but around 30%.
The above post made no sense. Having to pay for bennies and working for benefits at another company. Of course you have to work to get bennies, but if a company you work for pays your benefits that results in a higher rate of pay and if you have to work the more you get for working the better.
Speaking of taxes...
when paying self-employment tax, does that include unemployment taxes? I was thinking of filing since it looks like finding another job may take a long time.
Need info on taxes, etc... sm
I had my first IC job in 2005 (did not make very much money though). We do our own taxes, and I would like to know how to find out (in simple terms) what tax forms, etc. I need to include when filing taxes this year. Any help appreciated. Thanks!
ICs are responsible for taxes... sm
and insurance and all withholdings (1099 status). A statutory employee has FICA withheld and usually Social Security (W2 status). Both have to turn in schedules to their companies, but ICs have a little more flexibility. Also, ICs supply their own equipment. Statutories have the option of company supplied (with a rental fee taken from their check, which is waived a lot of times for high production) or use their own equipment. No bennies for either. An IC just usually needs to meet client turnaround times and can stop and start a lot more than a statutory or full employee status person does.
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