I have a client who is a green-card holder who is self-employed (contract) with the U.N. As such, she is exempt from social security and Medicare, which means she doesn't have to pay the self-employment tax (because that's SS+MC).
She's not a minister or religious worker. But that's the only thing I see to select "not subject to SE tax." Should I just check that box, or will that screw things up elsewhere? Or is there something somewhere else that I can check that will suspend / cancel the SE tax correctly?
I would not check the box that the individual is exempt from SE tax because he is a minister because that is not a true statement... You may want to ask the client if he wishes to mail the return in via USPS certified mail with return receipt , then you can attach the documentation showing that he is exempt from self-employment tax as a U.N. employee... It may take longer to process but at least you will know that you have done the right thing .... This is just my opinion
Are you sure the SE exemption applies to an independent contractor with the UN?
Are you sure it applies to a green card holder?
I know an employee of the UN with a G-4 visa will not have to pay social security tax. But that's all I know.
Yes, the customer printed out pages from an IRS publication.
Well, okay. It's possible that the IRS pub is wrong. I know it's happened before. But if an IRS pub says it, I'm willing to go along.
Anyway, all this talk about whether or not doesn't answer my question.
How do I do it?!?!?!?
The UN Secretariat has a detailed publication on this subject which does state that certain green card holders are exempt from self-employment tax even if they pay US income tax (which is then reimbursed by the UN). But they must be in the category that can sign a "waiver" -- see the publication. Technically these individuals are not "contractors," the term you use, but employees.