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Employers pay an additional tax on payroll. The withholdings they send to IRS is not considered a tax.
by rickreynoldssf 3y ago
Employers pay an additional tax on payroll. The withholdings they send to IRS is not considered a tax.
- deleted 3y ago[deleted]
- ericpauley 3y agoContractors have to pay both halves. If they did this (big if) they’d be owed a refund.
- 300bps 3y agoWhen you're a 1099 contractor you fill out Schedule C and pay as the employee and the employer.
- throwway120385 3y agoThere was a nice tax holiday on this a few years ago.
- PopAlongKid 3y agoThere was a deferral due to Covid for paying self-employed tax, but it still had to be paid eventually.
- prepend 3y agoWhen I did my own withholding, I had to withhold Medicare and social security taxes on my employees behalf and deposit it quarterly. These are certainly taxes and there is withholding for the employer portion as well as for the employee portion withheld on their behalf along with income and any other applicable taxes. Here’s a quote from the IRS [0]: “ An employer generally must withhold social security and Medicare taxes from employees' wages and pay the employer share of these taxes.” [0] https://www.irs.gov/businesses/small-businesses-self-employed/understanding-employment-taxes https://www.irs.gov/businesses/small-businesses-self-employe...
- loeg 3y agoYou are entitled to a refund of any excessive withholding you make beyond your tax liability. The argument is that, as the now employees understood themselves to be contractors, they paid the (higher) contractor tax rate (employee + employer). If the IRS is retconning them as employees and FTX owed the employer's share of the employees' taxes, the employees are entitled to a refund of the amount they overpaid.