more-arw search

Q&A Forum

W2 residual payment for deceased

ERIC Santos's Profile

My uncle did work for an online company back in January for $5000. He is paid in installments of $200/month as W2. Fed/state/medicare deductions are deducted on on it per month. He passed away recently, and notified social security since he is over 65 years old. Since we notified social security, won't the monthly social security deductions get returned to the employer to be marked as deceased and thus stop the payment ? Will there be an automatic flag that will stop it or it will continually send payments until it's paid in full ( or notify the employer to send the remaining payments to the next of kin ) ?

Answers

Topic Expert
Patrick Dunne
Title: Chief Financial Officer
Company: Milk Source
(Chief Financial Officer, Milk Source) |

Confusing question so I may need to re-state the question. If you have notified SS, that is one step. It sounds have there additional monies due from the online company, If that is the case, you should notify the company and provide information on the executor of the estate. Any monies due would be sent to the executor and yes a tax return would be filed on behalf of the estate for any income/expenses.

ERIC Santos
Title: CEO
Company: Benchmark Intelligence
(CEO, Benchmark Intelligence ) |

Hi Pat sorry for the confusion.
Were thinking since it's low residual income and it's going to a joint account to keep it as is. Would notifying the social security automatically notify the employer that the person is deceased down the line ? Is there a backend system that will flag the recipient as deceased ( and stop payment ) besides notifying the employer ?
Would there be any harm doing it this way ?

Topic Expert
Wayne Spivak
Title: President & CFO
Company: SBAConsulting.com
LinkedIn Profile
(President & CFO, SBAConsulting.com) |

My suggestion is you speak with either your tax professional or attorney.

While Pat is being nice, his advice is not given as your tax professional or attorney and no advice given to Financial Professionals in this forum is given from the POV of the tax or legal professional of a given company.

1248 views
Topics

Get Free Membership

By signing up, you will receive emails from Proformative regarding Proformative programs, events, community news and activity. You can withdraw your consent at any time. Contact Us.

Business Exchange

Browse the Business Exchange to find information, resources and peer reviews to help you select the right solution for your business.

Learn more

Contribute to Community

If you’re interested in learning more about contributing to your Proformative community, we have many ways for you to get involved. Please email content@proformative.com to learn more about becoming a speaker or contributing to the blogs/Q&A Forum.