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. 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 [...]
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. 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 utilize the withholding calculator on the IRS website to ensure my W-4 amounts are correct. This has gotten me very close to the amounts figured on my 1040 for the past 5-6 years since I’d begun utilizing the calculator. I do a final check with the calculator after the last pay date in [...]
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 [...]
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 [...]
