My client has a W2 with wages in box 1 and Federal income tax w/h in box 2. Box 3,4,5,6 and 7 all have zeros in them. When I last did this client's return in 2019, she was paid on a 1099. Why did the employer not withhold these taxes? What do I do next?
Sounds like she either works for an idiot, or someone trying to cheat the system, or both. You might want to have her check with her employer as to what they are doing.
@mcd1231@IRonMaN@Just-Lisa-Now-@sjrcpa I think I may have just found the answer. On a website called dockwalk.com. "foreign flagged vessel employed by foreign entity might not be required to pay social security and Medicare tax." You can go on this website yourself, but I would use smartphone to do it, just in case of any viruses or something like that. But website does look legitimate . Hope this helps. Just my opinion
Thank you for the information. I have read the article. She did indeed work on a yacht with the foreign flag being Grand Caymen. I contacted the Social Security Administration regarding ss and Medicare taxes and they told me to contact the IRS. I am trying to dig deeper because the article in the Dockwalk publication said her wages MIGHT not be subject to ss and Medicare taxes. I have searched IRS.Gov website and cannot find clarification.
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