By Reg Jones
OASDI and taxes
January 31st, 2013 | Uncategorized
Q. I recently started working part time. I requested taxes be deducted from my payroll. I note that I am being taxed old age, survivors and disability insurance. Is it a mandatory tax if I’m already retired?
A. Yes. Anyone who has earnings from wages or self-employment is required to pay that tax, even if he or she is already receiving a Social Security benefit.
Tags: OASDI deduction, part-time, RETIREMENT, SOCIAL SECURITY, taxes
Payroll tax
January 20th, 2011 | Uncategorized
Q: I just received my Dec. 29 payroll statement. My first payment in 2011 shows the same Old Age, Survivors, and Disability Insurance (OASDI) deduction I had in 2010. Is this because my employer did not have the chance yet to use the new 4.2 percent rate? Will I get the difference back retroactively?
A: Pay statements tell you what you earned and what was deducted during the previous two weeks. Therefore, you haven’t received a payment in 2011. If you are like most employees, you won’t receive a pay statement that will reflect the new rate until the first pay period in 2011 ends on Jan. 15.