When you are tax exempt what gets taken out?

Question

I know the guidelines about being tax exempt. I claimed it last year and this year. But so far my new job has been shifty about my paycheck. They didnt pay me the agreed wage we settled on and the check was about 10 hours short. So on my first check I have:

Fica-medicare

Fica-social security tax

and MD state tax.

Are these the appropriate taxes to take out when exempt?

I would refer to an old stub but I burned them all.

I know some taxes are taken... .like the MD state tax but what about those FICA's?

Answer 1

Sorry - medicare and social security are not optional.

Answer 2

FICA is Medicare and Social Security Taxes. You cannot be exempt

Answer 3

You are only exempt from withholding if you had $0 Federal tax liability last year and reasonably expect to have $0 Federal tax liability this year.  That equates to only $8,950 in gross income for a Single taxpayer.

Even if you meet the test for being exempt from the withholding of Federal INCOME tax, that has no bearing on State income taxes or Social Security and Medicare taxes.  The States have their own rules on exemption from withholding and EVERYBODY pays the FICA taxes with extremely rare exceptions.

Answer 4

You (and the employer) have to pay FICA taxes.  There is no exemption.

Answer 5

Yes, those are correct.  You can't claim exempt from social security and medicare - the employer is required to withhold those.  States have their own rules that don't always match the federal.

Answer 6

The only taxes you can claim exemption from are federal and state income taxes if you meet all the requirements.

No one is exempt from medicare and SS tax.  The employer is required to deduct those from your pay.

Answer 7

FICA is a mandatory withholding of 6.2% for social security (up to a limit that would only apply if your income is over $80,000) and 1.45% for medicare (no limit).  These are not affected by what you claim on your W-4.  Check whether they did the math correctly.