[imported_Sua Sponte]

First 82,500 is tax exempt (remember we are talking about contractors not military I beleive military is 100% tax exempt) but also you need to be out of the US 350 ( think thats the magic number) of days of the tax year to get the exemption status.

I just paid it all out every paycheck then let my CPA worry about it at the end of the year.. makes a nice refund.. and its less work on the HR personnel and myself ... Id rather play it safe than have Uncle same on my ass