AUGUST 20TH, 2008
By CPA SAM
Q. I would like to ask how I can decrease the withholdings from each paycheck…I am married, salaried about 52K yearly; HR explained to me that I needed to increase the number of dependents (?!) I bought a house, I will therefore deduct the mortgage interest and the taxes. I live in Florida. Thanks for your help!
A. I get so many W-4 questions that it’s almost impossible to know where to start. Your HR department Read more »
JULY 16TH, 2008
By CPA SAM
Q. My employer says I have to complete a new W-4 every year. Is this true? How often do I have to do this? It’s always the same.
A. I’m amazed at how many questions come in regarding the Form W-4. This deceivingly simple Read more »
MAY 28TH, 2008
By CPA SAM
Q. My paycheck is never the same because I’m in sales. I’m always adjusting my W-4 to get the withholding right. Now my payroll department is telling me I have to wait a month before my changes are input. Is this legal?
A. As I say all the time in this blog, the W-4 is the employee’s best tax planning tool. If you get the right amount of withholding set, you will have neither a large refund or a large extra payment when you file your taxes. Unfortunately, that is the ideal situation that most people never see.
Per IRS Publication 15, “If an employee gives you a Form W-4 that Read more »
APRIL 17TH, 2008
By CPA SAM
Q. I need to change my withholding for federal and my state. How do I do that?
A. This is one of the great mysteries of life for most employees. How does payroll come up with those tax and deduction numbers on my paystub? When you first started working at your company, your Payroll or Human Resources department gave you several forms for completion. One was the I-9 which proves your right to work in the U.S. Another was the Form W-4 and perhaps another was the state version of this form. The Form W-4 tells the payroll department how to withhold Read more »
