Q. We recently ran a fireworks stand for a business in another state. They have stands over about 4 different states and they hire people to manage them for them. This was our first year running the stand. We sold off of commission. We were to receive 20-25% of net sales that we took in. [...]
It’s been in the news a lot lately—how unfit Americans have become. The First Lady is advocating programs to fight childhood obesity while AARP started an online movement to get its members fit over this summer. Everyone is being asked to join in and help. But for employers and especially for payroll helping fight obesity [...]
Q. I have a unique variation of your “Social Security Tax on Everything” post… My wife’s small company decided to change their paycheck provider in July. The provider “reset” all employees yearly total earnings to zero and are therefore collecting the Social security tax from scratch. The provider claims they have to do this by IRS [...]
Q. Can a nonprofit corporation issue tax-deductible receipts while waiting for approval of 501(c)3 status from the IRS? Would the deduction be only for the state in which the nonprofit is located and not for a federal return? A. Non-profits fulfill a great need in our society. Thankfully, the IRS still considers donations to qualified [...]
Q. I have a full-time and a part-time job with different companies. My employers are both taking out Social Security tax. Is this correct? A. Good Question! There are several common misconceptions about Social Security withholding from a paycheck. This is probably one of the biggest. The answer is….a resounding YES!!! Each employer of record [...]
Q. My question is: I work for a school. Sometimes parents gift money or gift cards at holiday time or for an appreciation event. Are these taxable. How about gift cards from a school committee (holiday drawing etc.) Even a child will offer a dollar in a card. If they are I am really upset. [...]
A good question today for discussion: “My husband is self-employed with no other employees. I generate his paychecks. This year, he has been doing a few jobs outside of our county; therefore, the local tax amounts vary from county to county. The payroll program I use is a very basic program so there are not a lot of [...]
There are a lot of fringe benefits making the news these days. But none with as much confusion as cell phones and the taxation thereof. If you follow IRS regulations closely you know there is an entity known as the property list. Items on this list are subject to taxation if used by employees for [...]
Arizona has done it again. Currently, anyone who is being paid in Arizona must select from several percentages on the A-4. Arizona withholding is based on a percentage of federal withholding. The percentage you pick will be multiplied times the federal withholding number on your paycheck to arrive at Arizona withholding. If you selected 24.5%, [...]
Q. A 2% shareholder of an s corporation is also an emploeye. The corporation offers health insurance under a premium only 125 cafeteria plan. Is the shareholder/employee eligible to participate? If so should the corporation’s contribution be reported as wages? A. There are lots of good articles already on the web about 2% shareholders of S corporations. [...]
