Self-employed individuals need to pay monthly advances towards their Social Security payments. Many times their accountant will get the advances reduced or stop them altogether.
While this may seem normal, it may seriously deprive the self-employed individual with regard to compensation from Social Security in case of a work-related accident.
Recently, a self-employed individual sued Social Security for a work-related accident that occurred to him, after Social Security rejected his application for compensation.
the court upheld Social Security’s decision, since the self-employed person didn’t pay advances on his Social Security payments. this despite the fact that he had no outstanding debts to Social Security and he made annual payments !
Although each case needs to be reviewed individually and not all cases are the same, caution should be taken when cancelling monthly advances to Social Security. It is advisable to confer with a CPA or Certified Tax Advisor.
Moshe Egel-Tal, CSPP
Founder and CEO, Israpay "making payroll simple"
Site: http://www.israpay.com
Email: mo***********@***il.com
Skype: motal7
Snail Mail: p.o. box 44429 Jerusalem, Israel 91443
Follow me on social networks: Facebook, xing, twitter, Plaxo, FriendFeed, LinkedIn, Digg, Tagfoot, Myspace Username: Israpay