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Q. My payroll person told me that the filing status on the W-4 doesn’t necessarily mean the same thing as my marital status. Is that true? What is filing status?
A. Filing status on the W-4 and filing status on your tax return are not necessarily the same thing. The W-4 drives withholding only. The withholding [...]
Hooray!! The annual update to the document every employer is anticipating finally occurred. Okay, maybe not all employers were as excited to see this as I was. Publication 15 should be every employer’s best friend. This document contains instructions on everything from obtaining an Employer Identification Number (EIN) to withholding, to employer taxes.
How does a [...]
Q. We have an employee who is working on an extended assignment (1+ years) in another state. This is not the state of his residence. My company is paying his apartment rent. Is this taxable income to the employee?
A. That is a very good question. In these turbulent economic times, employees are more apt to [...]
An IRS news release today reminds small employers of an alternate form available to reduce the burden of quarterly payroll tax filing. It is called Form 944. If you have less than $1000 of annual employment tax liability, you can file this form. For the rest of employers, Form 941 is required. This is a [...]
Q. I have been asked to find regulations similar to the state withholding reciprocity rules for unemployment. I have a payroll person at one of our business units, who every time an employee is on a temporary assignment in another state she changes their SUI state to that state. This is causing big issues not [...]
Q. I am looking to expand my business into other states. I don’t want to rent full offices in case it doesn’t work out so my sales reps will work from home doing phone sales. What issues am I going to have to pay these guys?
A. Congratulations on your business growth! There is one important [...]
Q. I just started a new job and my employer wants me to do the payroll too. How do I learn some more about it so I don’t mess it up?
A. Thank you for looking for more education. So many people think that payroll is nothing more than taking out taxes. The payroll process has [...]
Q. I’m a new employer and have started withholding taxes from my workers checks. Where do I put the money?
A. Definitely don’t put it under your mattress! Publication 15 from the IRS is what I like to call the Employer’s Tax Bible. Every employer whether new or seasoned should look through that document each year. [...]
Q. Dear Mr. Kerch,
I have read your blog with interest. I will soon start a new business. I will sell advertising to small service-oriented businesses. I expect to recruit agents to sell this service at the local level in small communities. I do not wish to be classified as an employer and thus want to [...]
No questions about this one, but the weather guys are starting to talk about tropical storms forming. When I think of hurricanes or tropical storms, I think of lots of destruction and lots of tax documentation flying away from those who need it. While other bloggers and reporters may talk about preparing food, shelter and [...]
