The 2011 Form W-4, Employee’s Withholding Allowance Certificate was released last month. The Spanish equivalent, 2011 Formulario W-4(SP), Certificado de Exención de la Retención del Empleado, is now available. February 16, 2011 Is Filing Deadline Employees claiming...
Question of the Week: Why Did My Federal Income Tax Withholding Go Up in 2011?
This week’s question comes from Gabrielle, an office manager. I noticed that my federal income tax withholding increased for my first check of 2011 as compared to my last check of 2010. Several of my co-workers noticed the same thing. I thought the tax cuts were...
Tip of the Week: IRS Releases 2011 Form W-4
The Internal Revenue Service (IRS) has released the 2011 Form W-4, Employee’s Withholding Allowance Certificate. Form W-4 is used by employers to calculate the amount of federal tax to be withheld from an employee’s paycheck. Employees Claiming Exempt Status Must File...
2010 Form W-2 Tips, Part 3, Box 2 Federal Income Tax Withheld
This is one in a continuing series on the 2010 Form W-2, Wage and Tax Statement, which employers must generally furnish to employees no later than January 31, 2011. Forms mailed on the due date are considered furnished if properly addressed. Employers unable to meet...
Advance Earned Income Credit Is Repealed Starting in 2011
President Barack Obama recently signed the Education Jobs and Medicaid Assistance Act of 2010 (HR 1586) into law. As part of the legislation, the advance earned income credit, claimed by eligible employees by filing 2010 Form W-5, Earned Income Credit Advance Payment...
IRS Releases Information Letter on Making Work Pay Tax Credit
In response to a letter from Senator Amy Klobuchar (D-MN), the Internal Revenue Service (IRS) recently released Information Letter 2010-0144, which includes a response to her constituent about the effect of the Making Work Pay tax credit on his employees’ annual...
Question of the Week: Is the 2010 Spanish W-4 Now Available?
This week’s question comes from Kate, a restaurant manager. We know that the Spanish W-4 doesn’t come out at the same time as the English W-4. Is the 2010 Spanish W-4 now available? Answer: The 2010 Form W-4, Employee’s Withholding Allowance Certificate was released...
Oregon Updates 2010 Withholding Requirements for Measure 66
The Oregon Department of Revenue has completed its analysis of the changes required by the passage of Measure 66. For employees with wages less than $125,000, the Oregon Withholding Tax Tables dated January 1, 2007 remain in effect. For employees with wages of...
Question of the Week: When Will Form W-4 in Spanish Be Available for 2010?
This week’s question comes from Joe, a restaurant owner. We have many employees whose native language is Spanish. They are better able to understand forms in Spanish than they are in English. The regular 2010 Form W-4 is available in English, but we can’t find the...
Tip of the Week: 2010 Form W-4 Due for February 16, 2010 for Employees Claiming Exempt Status
Employees who have provided a Form W-4, Employee’s Withholding Allowance Certificate claiming exemption from federal income tax withholding must file a new 2010 Form W-4 by February 16, 2010 in order to continue their exemption from federal income tax withholding....
2009 Form W-2 Tips, Part 3, Box 2 Federal Income Tax Withheld
This is one in a continuing series on the 2009 Form W-2, Wage and Tax Statement, which employers must generally furnish to employees no later than February 1, 2010. Forms mailed on the due date are considered furnished if properly addressed. Employers unable to meet...
Question of the Week: Do Employees Claiming Exemption from Withholding Need to File a New Form W-4 for 2010?
This week’s question comes from Shawn, an HR director. We have several employees claiming exemption from federal withholding. Do employees claiming exemption from withholding need to file a new Form W-4 for 2010? Answer: Employees who have provided a Form W-4,...
Question of the Week: How Do Students Claim Exemption from Income Tax Withholding?
This week’s question comes from Will, a restaurant owner. We’ve hired several students to work for us this summer. Most of them don’t expect to owe any income tax this year. How do students claim exemption from income tax withholding? Answer: Students or others who...
Question of the Week: How Does an Employee Increase the Amount of Federal Income Tax Withholding?
This week’s question comes from Burt, an office manager. An employee filled out a Form W-4 and now is not having any federal income tax (FIT) withheld from his check. He wants to have $20 withheld each week since he thinks he’ll owe about $1,000 in FIT. How does an...
IRS Releases Withholding Adjustment Procedures for Pension Plans
In IR-2009-050, the Internal Revenue Service (IRS) has announced the release of Notice 1036-P, Additional Withholding for Pensions for 2009, in order to help some pensioners avoid a smaller refund or a balance due when filing their 2009 Form 1040. Although using the...
Unemployment Benefits Not Fully Taxable in 2009
Under the American Recovery and Reinvestment Act of 2009 (ARRA), the first $2,400 of unemployment benefits received by a taxpayer during 2009 are not subject to federal income tax. The Internal Revenue Service (IRS) recently released IR-2009-29, First $2,400 of...
Question of the Week: Do Employees Need to File a Revised Form W-4?
This week’s question comes from Jerri, an HR director. I know federal income tax withholding is supposed to change because of the new tax law. Do employees need to file a new Form W-4? Answer: Employees are not required to file a revised Form W-4, Employee’s...
Tip of the Week: IRS Releases Publication 15-T in Response to American Recovery and Reinvestment Act of 2009
The Internal Revenue Service (IRS) has released Publication 15-T, New Wage Withholding and Advance Earned Income Credit Payment Tables (For Wages Paid Through December 2009). Publication 15-T contains revised withholding tables to implement changes mandated by the...
Tip of the Week: Most Workers to Receive Making Work Pay Credit
As part of the American Recovery and Reinvestment Act of 2009, the Internal Revenue Service (IRS) has released updated withholding tables. Though they won’t be published until new Publication 15-T is made available later this week, the IRS has released Notice 1036,...
Question of the Week: Why Did Federal Income Tax Withholding Start on My Wages?
This week’s question comes from Angela, a part-time employee. I only work a few hours each month to help with school expenses. I claimed exemption from withholding when I started work last year. Yesterday’s check had federal withholding for the first time. Why did...
Question of the Week: Why Did My FIT Withheld Go Down?
This week’s question comes from Greg, a part-time accounts payable clerk. I made almost the same amount of money in 2008 as I did in 2007, but the amount of my federal income tax (FIT) withheld is significantly lower. Why did my FIT withheld go down? There are several...
Tip of the Week: Start Now to Collect 2009 Forms W-4
Employees who have provided a Form W-4, Employee’s Withholding Allowance Certificate claiming exemption from federal income tax withholding must file a new 2009 Form W-4 by February 16, 2009 in order to continue their exemption from federal income tax withholding....
2008 Form W-2 Tips, Part 3, Box 2 Federal Income Tax Withheld
This is one in a continuing series on the 2008 Form W-2, Wage and Tax Statement, which employers must generally furnish to employees no later than February 2, 2009. Forms mailed on the due date are considered furnished if properly addressed. Employers unable to meet...
Question of the Week: Do I Need to Withhold Federal Income Tax from All Employees?
This week’s question comes from Jennifer, an office manager: A new employee gave me a Form W-4 claiming exemption from federal income tax withholding. Can I give him a paycheck without withholding federal income tax? Answer: An employee who gives you a valid Form W-4...
Question of the Week: How Does an Employee Change the Number of Exemptions Claimed?
This week’s question comes from Donna, an office manager. An employee wants to change the number exemptions (withholding allowances) claimed. What should I do? Answer: Have the employee complete and sign Form W-4, Employee’s Withholding Allowance Certificate. Always...
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