They take out for FICA. You are responsible for state and fed taxes. nm
Posted By: LTMT on 2008-01-07
In Reply to: As an SE..do they pay any taxes..sm - not OP but interested
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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
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.
Are you responsible for your own taxes?
Do you have benefits? How fast do you type?
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.
Medware and state taxes
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.
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.
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 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
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.
Re subject way down about FICA
I was very interested in the thread below that seemed to state no FICA has to be paid on earnings after retirement. My husband retired at the full age but FICA is taken out of every check. I was hoping the poster was right, but from the following statement made on the social security web site, it does not appear to be the case. Unless I misunderstood the point the poster was making, in which case I apologize.
Q. If I work after I start receiving Social Security retirement benefits, will I still need to pay Social Security and Medicare taxes on my earnings?
A. Yes. Any time you work in a job that is covered by Social Security--even if you are already receiving Social Security benefits--you and your employer must pay the Social Security and Medicare taxes on your earnings. The same is true if you are self-employed. You are still subject to the Social Security and Medicare taxes on your net profit.
Tell me, what check is FICA
being taken out of. You said your husband retired at full retirement age?
As a statutory employee, they take out FICA and match it. sm
Therefore, you do not have to file self-employment tax, like an IC. You are still not an employee per se, in that you set up your own schedule/make your own hours. You tell them how many lines you will do in a day, and every 2 months, you submit a schedule, telling them which days you will work.
You have to have your own PC. You can rent a C-phone from them, and some of the accounts are going to wav files, and I think the company provides the wav pedal for you.
Hope this helps!
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
As an IC you are responsible
for all of your taxes, including the employer match portion to social security. As an SE, taxes are taken out and the employer pays their portion of SS. SE is like being an employee without any benefits.
WE are responsible
Nobody is responsible for how we invest our 401K's but US! If you have a 401K and can't tolerate investment risk, don't put your 401K money in the stock market, put it in a fixed investment. The investment company has nothing to do with how we choose to allocate our 401K investments. If you have a 401K and don't understand how it works, learn! This is vital to your personal financial survival!
I am only responsible for me
If others are so against what the companies are doing, then they need to do something as far as turning them in, etc. I hear a lot of complaining on this board but to tell you the truth, I do not think it is going anywhere with actions.
YOU and YOU alone are responsible for
letting people take advantage of you. Who else is to blame? People sit here talking about not being able to go out of the home, sitting waiting on work. Do you think the MTSOs do not read here. I know they do because 1 day I got an email from 1 replying to a posting I made. As long as you allow someone to make a door mat out of you, it will continue. I know exactly what I am saying. I would make suggestion but it might be construed as being ignorant.
Not sure if company responsible
for this way of counting or not. They don't pay for headers that you have to look up info for which takes time. I would say about a 30% reduction in line count per report disappears. Where it is going? Right back in their pockets I suppose. Im definitely looking elsewhere
Transcend is responsible for this.
That company has some of the worst managers in this business. They do not care about anything but themselves and think if they just slam the accounts with a lot of MLS to keep them current that is called good management. Some of the good managers take the time to balance out the work so everyone has enough but the lazy ones do not care whether or not we can keep our benefits or pay our bills. But you can't do a thing about it, these are the big boss's pets. You can do what I did - find a second company to work for so you do not rely on them for all your income.
Ultimately, doc is responsible.... sm
Ultimately, it comes down to the responsibility of the physician. I used to have physicians that would put things on the reports like, dictated, but not read. and they would think that got them off the hook, but ultimately, it is their responsibility to review the report for accuracy.
MTSO and client responsible here.
As a former transcription manager I can tell you without even thinking about it that ExText does what it is programmed to do. Your MTSO signs a contract with their clients and all of these things are negotiated. Remember that the new ethics takes the consideration out of whether or not the MT can make a living. It is,however, all about cutting the cost of transcription and I would say it is about time MTs made it their business to be informed about how they are paid and then not rushing to work for companies that do not respect their talents. Why validate people who have no respect for what you do to help their business each day.
You are so right, I stand chastised, we are responsible!
nm
reflect how responsible you are in other things.
x
Don't jump to conclusions about Wbx being responsible here - sm
you never know what is true in advertising. I'd be questioning the integrity of the J&J recruiters, rather than Webmedx!
who is made responsible for the mistakes
that slip through into a patient's report?
Do you think that all transcribed or VR reports are 100% error free?
This is no reason to stop the ongoing change to EMR.
Same thing.
I would always hope that a responsible intelligent MT...
typed my medical records. However, why should an MT be the ONLY ONE to take the perpetual pay cuts and the increased reponsibilities that should belong to in-house employees...you know those people who get raises and good benefits...such as researching demographics, CCs, etc.
This business is really different than when I got into it almost 10 years ago. I really, really feel for the people who have been in it for longer and have few options for a career change.
Ideally, yes, every member of the team, from those running MTSOs to those in hospital administration, would have patient care uppermost in their minds...but you know without it being said it is all dollars and cents to them.
MTs are just collateral damage, and professional people should not have to take a pay cut for trying to be more professional than the other people on the TEAM.
I shudder at some of the reports that I see, too, but I cannot lay a guilt trip at the feet of MTs trying to make a living when the deck keeps perpetually getting stacked against them.
The last job I went into was exactly this way...if you have a foot pedal and knew speech recognition, you got the job because speech was new to them. Their tech support was also the human resources person, chief salesperson, and CEO, so when my footpedal did not work, I had to figure it out. My QA trial was 3 reports and then off. The office manager sent me the account specifics - updated in 2007, but I had no supervisor. I could e-mail her with questions, do not call please, and she would try to find an answer and e-mail me back. There is no weekend and evening coverage for anything...call Dictaphone if you absolutely cannot work. Otherwise, five blanks is acceptable to send to the client.
To me, these are the people who should be told to buck up, not the MTs. How can you possibly expect to have a quality MT if that is all the time and information you give them? Inferior MTs are being created by the industry and accepted by hospitals so they can pinch a penny.
To ask MTs to switch professions if they cannot cut it is ridiculous, because they will just be replaced by MTs who know less than they do or more work sent overseas because there truly aren't enough American MTs to do the work.
I agree with the OP ... the MT or editor is responsible.
As an employee, the MTSO is responsible.
It is their responsibility to make sure their employees are performing to standards. As a good MT, you try to do the best you can with each and every report, but the responsibility ultimately rests on the MTSO.
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.
No, just someone who is not an accountant. Responsible for 200+ employees, ICs in several states. No
nm
Lawsuits? YOU are responsible for final product, sm
VR doesn't claim to put out a perfect product and never will.
No, the MTSO is responsible for the final product,
and when they give you a garbage platform and force you to fly through reports to make minimum wage, it's too easy to make mistakes. They know this & don't care, and THEY are responsible for the product they are selling. If your brand new Toyota explodes, you don't sue the assembly guy, you sue Toyota... so bwahaha to the MTSO.
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.
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