Posting for my septuagenarian dad, who recently retired from his full-employment position in early July, has received his first pension payment, and will soon receive his first social security payment. He has also made his first medicare premium payment. He does not need the money from the proposed work, but wants to have a transition of sorts from full-employment (in other words, wants to keep his mind sharp).
His former employer (a state university) would like to hire him back on a part-time basis (presumably as a consultant, though I'm not exactly sure). I've done some reading on this, and it seems that my dad's consulting income will not be subject to SS clawback provisions, as he is over 70. However, there are other areas with which he and I are less familiar, and he has asked me to help him get a better grasp of various concerns (mainly taxes).
First, would his consulting income be subject to any payroll taxes (that is to say 6.2% * 2 for SS + 1.45% *2 for medicare)? I've done a search on this topic here, but it wasn't clear if previous forumites who posed similar questions have already surpassed full retirement age.
Next, given his age, does it matter how my dad's hired back (part-time employee, consultant, contractor)? We are under the impression that there will be no benefits provided, but perhaps it won't hurt to ask?
Lastly, what other issues should consider?
Many thanks in advance.
His former employer (a state university) would like to hire him back on a part-time basis (presumably as a consultant, though I'm not exactly sure). I've done some reading on this, and it seems that my dad's consulting income will not be subject to SS clawback provisions, as he is over 70. However, there are other areas with which he and I are less familiar, and he has asked me to help him get a better grasp of various concerns (mainly taxes).
First, would his consulting income be subject to any payroll taxes (that is to say 6.2% * 2 for SS + 1.45% *2 for medicare)? I've done a search on this topic here, but it wasn't clear if previous forumites who posed similar questions have already surpassed full retirement age.
Next, given his age, does it matter how my dad's hired back (part-time employee, consultant, contractor)? We are under the impression that there will be no benefits provided, but perhaps it won't hurt to ask?
Lastly, what other issues should consider?
Many thanks in advance.
Statistics: Posted by InvisibleAerobar — Sun Aug 04, 2024 6:23 pm — Replies 0 — Views 255