Contact UsNo Social Security or Medicare taxes withheld?
I live in NJ and my spouse is my employer. My W2 doesn't have any federal, social security, or medicare tax withheld (boxes 2-6 are all blank). I spoke to someone with the company who manages the fiscal aspects of employment and they said in NJ if you work for your spouse you don't pay in to Social security or medicare. When I file my federal tax return, do I have to do anything about this or do I just file it as I normally do?
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Tax Professional Answers
John Stancil
That simply is not true. You are subject to social security and Medicare withholding. These are Federal laws, and they don't change based on your state of residence. As a spouse, the company is not subject to federal unemployment taxes on your wages. In addition, the company may not be subject to state unemployment taxes on your wages.
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442 weeks ago
Question Owner
I found this on the IRS website "One spouse employed by another. The wages for the services of an individual who works for his or her spouse in a trade or business are subject to income tax withholding and social security and Medicare taxes, but not to FUTA tax. However, the payments for services of one spouse employed by another in other than a trade or business, such as domestic service in a private home, aren't subject to social security, Medicare, and FUTA taxes." What I do is a domestic service in a private home so I think the last line applies to me.
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442 weeks ago
John Stancil
That's a little bit of a grey area. It sounds as if you are working for the company, not your husband. Therefore, it would likely be a trade or business. If he, as an individual, employed you that would be a different matter. If he operates as a sole proprietorship, filing schedule C, you are working for him, but seemingly in a trade or business. If he has a corporation or LLC, you're working for the company.
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441 weeks ago