Employers

• Why pay social
  security taxes?
• What taxes are due?
• When are taxes due?
• Partnerships
• Corporations
• Employer Audits

Partnerships

Partners may or may not be employees of a partnership. Only report a partner if a bona fide employer-employee relationship exists between the partner and the partnership. Official documents of a partnership must be provided to FSMSSA upon applying for the employer identification number.

Tax assessment for partnerships:

1. No Employees – The SS tax will only be assessed on each partner who has an employee-employer relationship and deemed to receive wages based on 5% of the gross revenue of the business for the previous year, as applicable to a sole proprietorship with no employees, and as long as the business the previous year had gross revenue in excess of $10,000;
2. With Employees – The SS tax will only be assessed on each partner who has an employee-employer relationship based on twice as much as the highest paid employee or as applicable to Sole-Proprietorship with employees;
3. If all Partners claim no working relationship with the business organization, the SS tax will be assessed on all of the partners based on the “Self-Employed with employees” or Self-Employed with No Employees” calculation.