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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 ...
JTP - Apologise to Monica's user avatar
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 ...
Ben Miller's user avatar
  • 116k
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. ...
Ben Miller's user avatar
  • 116k
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 ...
littleadv's user avatar
  • 176k
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 ...
RonJohn's user avatar
  • 50.7k
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 ...
Hart CO's user avatar
  • 70.5k
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 ...
Pete B.'s user avatar
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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 ...
mhoran_psprep's user avatar
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 ...
GS - Apologise to Monica's user avatar
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 ...
TTT's user avatar
  • 47.2k
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 ...
user662852's user avatar
  • 8,389
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 ...
BobbyScon's user avatar
  • 14k
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 ...
void_ptr's user avatar
  • 3,128
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. ...
quid's user avatar
  • 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. ...
TTT's user avatar
  • 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,...
Hart CO's user avatar
  • 70.5k
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 ...
C8H10N4O2's user avatar
  • 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 ...
mhoran_psprep's user avatar
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 ...
Justin Cave's user avatar
  • 27.3k
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 ...
Joe's user avatar
  • 35.8k
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.
Aganju's user avatar
  • 37.7k
6 votes

Do I have to pay Medicare and Social Security taxes if I just have a work permit and not yet a green card?

You would only be exempt from FICA tax (Social Security tax and Medicare tax) if you were a nonresident alien for tax purposes, and you are working legally in certain specific statuses, including F-1 ...
user102008's user avatar
  • 17.2k
6 votes

What tax scale will my paycheck use?

Since you received the income in 2018 you would declare in on your 2018 tax return. That said... It will be mid-January before new withholding schedules are released that reflect the changes in ...
D Stanley's user avatar
  • 136k
6 votes

State Tax Error

No, ADP is not responsible for paying your state taxes. If there was an error in your withholdings it's your responsibility to catch it (by looking at your paystubs) and correct it in future ...
D Stanley's user avatar
  • 136k
6 votes

Would funding a Fidelity HSA from a bank account instead of direct deposit incur extra taxes?

Would funding my Fidelity HSA by linking a bank account cause me to pay taxes I would otherwise avoid by using direct deposit? Yes. As you mentioned, paying out of a bank account means you've already ...
Stan H's user avatar
  • 7,551
5 votes

Payroll tax on wheat given as wages

It's not a payment "in kind". Payment "in kind" refers to barter transactions where similar kinds of items are exchanged (prepared food for prepared food at a dinner party, for example). Exchanging ...
grovkin's user avatar
  • 161
5 votes

LLC-SCorp to self - actually, does the corp pay payroll taxes?

In fact: does JoeCorp have to pay "payroll taxes" on that?? Yes. Any shareholder of an S-Corp with greater than 2% ownership must take reasonable compensation from the S-Corp as a W-2 employee, and ...
Hart CO's user avatar
  • 70.5k
5 votes
Accepted

What happens when a Roth 401(k) contribution interferes with payroll taxes?

I think you'll simply have to ask your HR department how they would handle this. My guess is that withholding would happen first, and the remainder would be eligible to try to meet your percentage, if ...
TTT's user avatar
  • 47.2k
5 votes
Accepted

With the Presidential "Payroll Tax Holiday" being imposed, should I invest the money in ROTH IRA or Regular Brokerage?

(Note: This answer has been rewritten.) Trump has signed this executive order today, August 8, 2020. As expected, the details are different from what was previously announced and reported. Before I ...
Ben Miller's user avatar
  • 116k

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