WC Taxes withheld?

I have never had a company deduct Worker's Comp Taxes from a check...........until now!

Any one have any experience with this?

Robin

Silver certified, I shop in Cities in NM and TX that no one has ever heard of.

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Did they also deduct federal, state and Social Security? BTW, what company was this? And the big question is, how do you know that is what they deducted?

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No, no Fed, state or SS. The company is Spar Inc. I did a couple of jobs for them for the first time last month and just got my first check. It says "Ind. Cont. and WC under taxes.

Robin

Silver certified, I shop in Cities in NM and TX that no one has ever heard of.

I do demos/Merchandising and they do take WC but I am an employee. I don't think as an IC they can take WC deductions so I am guessing you are an employee?

No, I'm not an employee. Been doing some research though, and it looks like they can!

Robin

Silver certified, I shop in Cities in NM and TX that no one has ever heard of.

I didn't know they could pick and choose what to deduct, unless the amount you made dictated the taxes. It sounds like they have you classified as an employee. Did you fill out a W-2 and are they paying you an hourly wage?

If they don't have your SSN or EIN, they can withhold federal taxes of 20%, I think.

No, I am not classified as an employee. I am an independent contractor. It even says that on the check. I did not fill out a W-2, and they are not paying me hourly. Yes, they have my SS#.

As I understand it, it IS legal if they warn you about it, which apparently they did in the ICA (how could I have possibly missed that?)

It says they can deduct 2.9% (so it isn't a lot of money) for WC and "liability insurance" So I guess if I get hurt while on one of their jobs, I'm covered!

Robin

Silver certified, I shop in Cities in NM and TX that no one has ever heard of.

As I understand it, if you asked for a W-9 from an independent contractor but didn't get one, you must withholding a flat 28%. The same holds true if the IRS notifies the payor that the SSN/TIN on the W-9 is invalid.

I don't know about withholding for worker's comp, though. I suspect that's a matter of state law, not the Internal Revenue Code.

I would not argue with an MSC about 2.9%. However, I would ask them, politely, for their legal authority to do so, and I would also want their assurance, in writing, that I would be covered by worker's comp.

Workers' comp is set by states, not by the feds. What state are you in? Call your state department of labor to find out what is allowed or required.

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WC Taxes withheld?

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