w2 with zero for SS and Medicare wages

[mcd1231]

My client has a W2 with wages in box 1 and Federal income tax w/h in box 2. Box 3,4,5,6 and 7 all have zeros in them.  When I last did this client's return in 2019, she was paid on a 1099. Why did the employer not withhold these taxes?  What do I do next?

[sjrcpa]

State or local government or university employer?

Prepare the return using the W-2 received.

[Just-Lisa-Now-]

The client may want to check with the employer to make sure its correct, but this isnt uncommon for certain types of employers.

YOU dont need to do anything except enter the W2 as its been issued.

[mcd1231]

No she worked as a yacht steward

[mcd1231]

No she worked on a yacht as a steward

[IRonMaN]

Sounds like she either works for an idiot, or someone trying to cheat the system, or both.  You might want to have her check with her employer as to what they are doing. 

[PATAX]

@mcd1231 @IRonMaN @Just-Lisa-Now- @sjrcpa I think I may have just found the answer. On a website called dockwalk.com. "foreign flagged vessel employed by foreign entity might not be required to pay social security and Medicare tax." You can go on this website yourself, but I would use  smartphone to do it, just in case of any viruses or something like that. But website does look legitimate . Hope this helps. Just my opinion

[qbteachmt]

"she worked on a yacht as a steward"

"I think I may have just found the answer."

It just proves the points that more details always help and details matter. Good mind-reading.

[sjrcpa]

And the next question is - does the client have to pay SS and Medicare tax on these wages?

[sjrcpa]

Once I heard yacht steward I thought that would be the case.

[PATAX]

If it is a foreign yacht "flying the Russian flag" , then it may currently be "impounded"........ Just my opinion.

[rcooley25]

Sounds Like Her Employer might qualify for a position at Intuit.

[IRonMaN]

I think it is flying the Cooley flag and loaded with Fireball whiskey 😁

[rcooley25]

I have been informed by some of my family that for fathers day I will receive a nice huge supply of fireball whiskey.

[mcd1231]

Thank you for the information.  I have read the article.  She did indeed work on a yacht with the foreign flag being Grand Caymen.  I contacted the Social Security Administration regarding ss and Medicare taxes and they told me to contact the IRS.  I am trying to dig deeper because the article in the Dockwalk publication said her wages MIGHT not be subject to ss and Medicare taxes.  I have searched IRS.Gov website and cannot find clarification.  

[PATAX]

You're welcome