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Social Security Taxes & Working for a Nonprofit

Do you work for a nonprofit organization? If so, you may be wondering if your employer is required to pay towards your Social Security taxes. According to the Social Security Administration, employees who work for nonprofit organizations are required to pay Social Security taxes on any earnings that exceed $100.

If you work for a nonprofit, you and your employer are each required to pay 6.2% Social Security tax on your earnings of up to $118,500, plus a 1.45% Medicare tax on your total earnings.

What if I am a self-employed nonprofit worker? In that case, you will be responsible for paying the combined employee/employer amount, which comes to 12.4% Social Security tax on your earnings of up to $118,500 (net income), plus that 2.9% Medicare tax on your total net earnings.

If you are married and your earned income exceeds $200,000 ($250,000 if you’re married and filing jointly), you’re required to pay 0.9% more in Medicare taxes.

What if I work for a religious organization?

Do you work for a religious organization? There are some religious groups who are against participating in the Social Security program. Under the law, religious groups are able to opt out of the Social Security program.

If you work for a religious group that’s decided not to participate in the Social Security program, it is not required to withhold Social Security taxes from your paycheck, nor does it have to pay a portion of your Social Security taxes like regular employers do.

Please be aware that if you’re working for a religious organization that has chosen not to pay into the Social Security program, you’re not off the hook. You will be required to pay Social Security taxes on any income that is more than $100 for the year.

If you’re working for a religious organization that’s not paying towards your Social Security taxes, then the Social Security Administration treats you much like a self-employed individual. Meaning, you will be responsible for paying all of your Social Security taxes.

Currently, the self-employment tax is 15.3%, however, when you file your tax return you can take special tax credits.

To file a Social Security Disability claim, contact a Dallas Social Security Disability attorney from The Zendeh Del Law Firm, PLLC!