Page 5 of IRS’ instructions for form 941, where employers report income tax withheld and FICA (Social Security and Medicare).
The form instructs employers not to include these employees:
· Household employees
· Employees in nonpay status for the pay period
· Farm employees
· Pensioners
Active members of the Armed Forces.
There’s no definition of “pensioner” in the instructions. It’s a somewhat antiquated term. Is it the same as “retiree”? Who is a “pensioner”? Anybody know? I’ve Googled but can’t find anything.
If you don’t maintain a pension fund, this is very likely not something you have to worry about.
So is the pensioner someone who’s receiving a pension from the employer, in this context?
That’s how I’d read it.
They were probably getting questions like, “hey I have an employee who earned a pension, and now he’s drawing on the pension, am I ‘paying’ that employee?” I’m sure that’s the situation they’re trying to clarify.
That’s how I’d read it too. We have an employee who’s asking why we’re deducting FICA. “Why should I have to pay in to Social Security and Medicare if I’m getting Social Security and Medicare?” Because you just have to, apparently.