Are non-profit companies exempt from paying Social Security taxes for their employees?

There are two words that describe this arrangedment and the first one is Bull:

Send Form SS-8 http://www.irs.gov/pub/irs-pdf/fss8pr.pdf to IRS and get a ruling on your status. You should include a statement about how many other employees are treated the same way as you and maybe you can generate an employment tax audit that will reduce the profit that is being generated by by this so-called non-profit by enough to pay what should be paid on your behalf.

You're right. If you're not paying taxes into the system then you're not collecting social security credits or earnings towards retirement. And depending on other factors, this may effect your ability to qualify for Medicare. Also the employer pays into the system as well.

There is no blanket exemption for employees of non-profits. Employees of churches, employees of colleges who are also students, and the Amish should be the only ones not paying FICA taxes. Also contractors don't have the taxes withheld from their paychecks, but pay it with their tax return.

You won't be required to come up with a tens of thousands of dollars check all of a sudden. If they do decide, you'll be given time to pay up. And you'll want that paid in for when you retire.

NO

omg, they certainly don't know what they are doing

the only people who are exempt from the SS system is those who have opted out, like ministers and pastors, and there are some school districts who opt out as well as local, city and county governments but it the non profit doesn't provide another means for retirement they are not exempt(school districts have their retirement plans, the local city, county etc have theirs(called PERS here)

they apparently are paying you as a 1099 and you pay your own as a self employed person on sch C and SE

Employees are to have fica/mc and taxes withheld.

There is an exception is for workers who are classified (legally or not) as contractors.

There is an exception is for students working on campus while they get their degrees.

There is an exception for churches.

Since you are none of theser, you need to ask them what form you will get at the end of the year. If they say 1099-Misc, you need to file an SS-8 with the IRS and see if you have been classified correctly or not.

As for retirement, payment for services gets reported to the SSA by either your W-2 or your schedule C/SE.

As for your concern that you will suddenly owe, gee, didn't you figure that out when you field for 2009?

Nonprofit organizations ARE required to pay (and deduct) all payroll taxes including Social Security. Are you sure about your status as an employee (and not a "1099 worker")? Are they withholding income taxes? If you are an employee, they are violating the law. Report them to Social Security.

They shouldn't be exempt from paying all their taxes, but since most of them are less then moral they usually end up paying none and living off the congregation for free.

This is NOT a non-profit organization!

Even if it was, the salaries are subject to FICA taxes.

If it's a partnership, and it sounds like it might be, the owners pay FICA taxes via Schedule SE on their personal returns. Any non-owner employees' wages are subject to payroll taxes and FICA withholding from the wages.

No, NOT legal. Being a non-profit doesn't exempt them from social security. And since none is being paid in for you, you aren't getting ss credits for those quarters.

Social Security Disability Guide : http://disabilityhelp.siopu.com/?eiU