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Q. My husband works for a large company, and I receive disability and do not work. We just had our taxes done this week and got quite a shock! We had a federal income tax refund of over $4000, but owed state tax of $1000 and local taxes of $600. We are in PA. How [...]
Q. I just started as a temp through an agency. I work full-time and just received my first paycheck. I want to ask about the OASDI and the NY 2010-NYCNY withholdings. I was taxed heavily for the OASDI. What is the NYCNY withholding? Most importantly, I wanted to ask you is there any way to [...]
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. I borrowed $15,000 from my 401(k) in Feb, 09. In May, 09, I was laid off from my job. My only options for the loan were to pay it in full (not going to happen) or default. They would NOT allow me to continue making payments and would not transfer the loan to my [...]
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 just got a bonus from my company and noticed the taxes were way higher than my normal tax bracket. What is going on? I live in California.
A. I have good news and bad news for you. The bad news is, the calculation is probably correct. You did not supply any numbers with your [...]
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 work for a large company that maintains a few different business units under the parent company. The company uses different tax ID’s for each business unit. This year I changed jobs internally, moving from one business unit to another. In July I noticed that my year-to-date FICA contributions had reset as a result [...]
