63
votes
Accepted
Payroll tax on wheat given as wages
The CPA is mostly correct. Her use of "in kind" may be confusing, but it appears that while our gut would call this "bartering" and refer to the rules regarding same, there's a different set of rules ...
27
votes
Why do I have to pay Medicare payroll deductions while I am retired if I am still working?
This is something that many people misunderstand.
Nearly everyone who works in the U.S. is required to pay Social Security and Medicare taxes (sometimes called payroll taxes or FICA). These are not ...
- 115k
27
votes
Accepted
How much do I withhold for an employee receiving $2000 every two weeks?
For the federal tax, start by looking at IRS Publication 15, the Employer’s Tax Guide. The withholding tables that you would use are in IRS Publication 15-T, Federal Income Tax Withholding Methods.
...
- 115k
20
votes
Opting my child out of SS taxes?
The good news is that he probably won't be required to pay SS taxes. The bad news is that the reason will be because he can't get a job without a SSN. You don't get to just opt out of the social ...
- 53k
19
votes
Accepted
How do payroll-deducted taxes get sent to the IRS?
The money gets sent to the IRS through the EFTPS system. Depending on the amounts, the employers are required to deposit it on a monthly/semi-weekly basis, so they don't get to keep the tax money for ...
- 166k
19
votes
Accepted
Incorrect FICA withholding by my employer
The short answer is that yes, you are responsible for making the FICA taxes whole. Note that you're not being charged anything you weren't already owing; you in fact got to have some of the money ...
- 35.7k
19
votes
Do I need to pay medicare/social security as full-time employee but with a business on the side of which I'm the sole owner/employee?
(Your situation is not unique: lots of people have part-time "sole proprietorship" side jobs.)
Any revenue from your mobile app business is... income. Therefore you have to pay tax on it. Even if ...
- 50.6k
18
votes
Opting my child out of SS taxes?
Not getting SSN has nothing to do with his/her liability to pay SS taxes. It just makes the life more complicated and you forgo your own tax benefits that you must have child's SSN to get.
To request ...
- 166k
18
votes
Wage difference in pay period for same weekly hours worked
Your reasoning is sound, and you are correct. What most likely happened is that they withheld as if you earned all that within one pay period. That could be someone on the payroll end not doing the ...
- 69.1k
17
votes
Why might Social Security employee deductions from paycheck vary across pay periods?
Social Security tax only applies to the first $118,500 you earn in a year.
See the Social Security Administration's website for more info.
You should see a 6.2% increase in after tax earnings now.
If ...
- 1,240
15
votes
Accepted
Understand 401k contribution
While you are losing a lot of monthly take home income, you are gaining a tax advantage, increasing your income, and net worth. Every two weeks (two months per year you will get three paychecks in ...
- 76.1k
15
votes
Whose responsibility is it for paying SS and Medicare?
You need to sit down with somebody who can work through the issues with you.
Based on your earlier question: Social Security and Medicare taxes not withheld from 4 years ago you have known about this ...
- 136k
13
votes
Accepted
Why my bi-weekly salary after taxes doesn't sum up my yearly income
In some months there are three biweekly payments.
If you multiply $3846.15 by 26 (the number of biweekly periods in the year) you get $99999.90. I wouldn't worry about the extra ten cents.
- 33.1k
12
votes
With regards to a national insurance refund, what is my Work or Clock number?
First, please make sure that this letter from HMRC is genuine and not some kind of scam. It probably is ok, but make sure that the return address you are sending to is a genuine HMRC address, e.g. by ...
- 27.9k
11
votes
Accepted
This is my pay stub. Am I paying too much?
This doesn't look particularly unreasonable, but a few notes:
He might be somewhat over-withheld for his taxes because he's claiming 0 federal and state allowances. In other words, his employer may ...
- 1,097
11
votes
Payroll tax on wheat given as wages
Conceptually, you should think of it like this: You issue your employee a paycheck, and your employee then turns around and purchases the amount of wheat from you which equals the entire net amount of ...
- 47.2k
10
votes
Does an employee have the right to pay the federal and state taxes themselves instead of having employer doing it?
You can file a revised W-4 with your employer claiming more allowances than you do now. More allowances means less Federal tax and (if applicable and likely with a separate form) less state tax. This ...
- 13.8k
10
votes
Payroll tax on wheat given as wages
Farm income is a separate beast under Schedule F. There may be a basis for the CPA'S assertion in regards to a farm-income concept of "commodity wages" though I don't have the expertise to ...
- 8,348
10
votes
Understand 401k contribution
Using the numbers provided in the question, contributing $260.42 to 401(k) reduces the federal income tax withheld by $57.29.
Thus the marginal tax rate is $57.29 / $260.42 = 22%.
Furthermore, $260.42 ...
- 3,118
9
votes
Accepted
Would I make more if paid weekly instead of monthly?
You seem to be very confused about taxes. The withholdings from your paychecks are just the result of a reasonably educated guess of what your total tax liability will be at the end of the year. ...
- 49k
8
votes
Simple Tax Question Regarding Bonus Payment
Assuming you still have all the extra money they gave you, I think the best solution would be for you to pay them back immediately. I think this makes you look the best in the eyes of your employer. ...
- 47.2k
8
votes
Accepted
Is insurance compensation for lost wages taxable (in the U.S.)?
Yes, wages are taxable, and insurance payouts for lost wages are also taxable.
They aren't required to withhold taxes, but they will give you a 1099 (if under $600 they aren't required to file a 1099,...
- 69.1k
8
votes
How much do I withhold for an employee receiving $2000 every two weeks?
For California it's the EDD (Employment Development Department) which will have the state withholding info, including tables. There are different types of employers, so look up your type and the ...
- 1,406
7
votes
How do I calculate my W-4 deductions when I want to keep $145 more of each paycheck?
Generally the advice is that each allowance on the W-4 represents a personal exemption amount. In 2016 that number is $4,050.
A person that takes the standard deduction and exemptions for ...
- 136k
7
votes
Accepted
Clarification on getting paid from a company which filed for Bankruptcy?
If you are actually an employee and your employer goes bankrupt, you're first in line to recover money from the bankrupt company. Assuming that the company has some assets that can be sold off, you ...
- 26.5k
7
votes
Accepted
How to get a uniform amount of money for each paycheck given the social security threshold?
You could simply calculate the point at which it will occur, and how much you will get back, and then adjust your withholding slightly down early in the year by claiming one additional allowance, and ...
- 35.7k
6
votes
Why my bi-weekly salary after taxes doesn't sum up my yearly income
There are 26 pay periods for you bi-weekies. 3846.15 * 26 = 99999.90.
6
votes
PayStub - What is Employee ID?
Employee ID is the number or code your company uses to identify you uniquely.
Its format is completely up to the employer, and it has no meaning outside of this employer.
- 37.6k
Only top scored, non community-wiki answers of a minimum length are eligible