Expected Annual Wage | Income Tax Withholding | Social Security & Medicare Withholding | FUTA |
Less than $600 annually | Exempt | Exempt | Exempt |
At least $600 and less than $2,000 annually | Exempt | Exempt. File Form W-2 for payments of $600 or more even if no social security or Medicare taxes were withheld. | Exempt |
$2,000 or higher annually | Exempt | Taxable if paid $2,000 or more in 2022 (lesser amount if specified by a section 218 social security agreement). See Revenue Ruling 2000-6. | Exempt |
Scenario 1. Less than $600 Annually:For annual wages less than 600, the wage pay code should not have any tax pay codes listed on the Used in Calculation sub tab on the Employee tab. Once created it should be assigned to all election workers.Scenario 2. At least $600 and less than $2,000 annually:
For an employee with annual wages between $600 and $1,999.99 the pay code should have FWT and SWT included on the Used in Calculation sub tab of the Employee tab. Also note that nothing needs to be withheld for these taxes but this pay code along with the FWT and SWT pay codes need to be assigned to the employee so that a W-2 can be issued. When adding the FWT and SWT pay code to the employee they can assign the applicable No Withholding calculation.
Scenario 3. $2,000 or higher annually:
For employees with annual wages of $2,000 and above the pay code should have all tax pay codes listed on the Used in Calculation sub tab on the Employee tab. Also confirm that this pay code is listed on the Used for Calculation sub tab on the Employer tab of Social Security and Medicare pay codes.