Notes on Meeting with Patricia P. – Accounting Consultant
If you have received money you were not due, do not cash the check. See the board office immediately to request the check be voided, and a new check be issued to the appropriate person, or if it was for you for the correct amount. DO NOT PAY another employee with a personal check. Your taxes will be incorrect at the end of the year!
Summer school teachers are paid on a 1099 form, and do not receive a W-2 for summer school work. This means it is not being paid out of the regular salary accounts, but you are being paid as a “consultant”, which is fine. If a summer school teacher needs a sub, they should pay the sub the full amount, then take it off as a deduction. The sub should then claim it as income on their own taxes. The difference here is that you can file a Schedule C (Self-Employment Income) form on your tax return, and claim the following deductions, which we normally cannot claim with our regular pay (Use your SS number as your employer ID#):
· a percentage of what your internet costs are if you are using it at home to prepare your lessons
· a percentage of the cost of your computer, printing expenses, paper
· books & any other materials used for your class
· tolls you incur to/from work
· mileage @55 cents per mile (will check on this exact figure, or check with your accountant)
Also, the current employee share of taxes is 7.65%, and our employer pays the same, totaling 15.3%. On the 1099 for summer school pay, none is taken, so you are responsible for the full share, 15.3%.
Pensionable wages – under 50 - $16,500
over 50 - $21,500
Paycheck deductions:
In general…
Federal taxes – depends on you file – single, married, # of dependents, etc
Social Security – 6.2% - maxes out at $105,000 for 2010
Medicare – 1.45% - never maxes out
Unemployment - .00425% - maxes out at $114.28
Many tax prep chains will charge you based on how many W-2’s you are submitting. Because many of us receive multiple W-2’s, we may contribute more taxes than necessary, as they are taken out on each W-2. Form NJ-2450 can be filed to get overpayments back.
If you have any other questions, please submit them to any GFT officer, and we will forward all questions on to Patricia.