More parents may owe “nanny tax” this year, due to COVID-19
In the COVID-19 era, many parents are hiring nannies and babysitters because their daycare centers and summer camps have closed. This may result in federal “nanny tax” obligations. Keep in mind that the nanny tax may apply to all household workers, including housekeepers, babysitters, gardeners or others who are not independent contractors. If you employ […]
Are you withholding enough? Now is a good time to check
Due to the massive changes in the Tax Cuts and Jobs Act, the 2019 filing season resulted in a few surprises. Some filers who have gotten a refund in past years wound up owing money. The IRS reports that the number of refunds paid this year is down from last year — and the average […]
Pay too little in taxes last year? IRS offers relief for underpayment
Many taxpayers saw a bump in their take-home pay last year as a result of the lower tax rates and increased standard deduction thanks to the Tax Cuts and Jobs Act. That’s the good news. On the other hand, some taxpayers may have had too little tax withheld in 2018, exposing them to potential penalties […]
Updated Form W-4 and withholding calculator now available
The new version of Form W-4 and an updated withholding calculator to reflect the recent tax law are now available. The Tax Cuts and Jobs Act, which was signed into law in December, made major tax law changes for individuals, including changing tax rates and tax brackets. The IRS issued in January new withholding tables […]
New withholding tables reflecting tax reform now available
Many Americans can look forward to seeing an increase in their paychecks next month due to the new tax law, but first employers must update withholding information for employees. The IRS released recently the 2018 withholding tables – formally the 2018 Percentage Method Tables for Income Tax Withholding – and employers must begin using them […]
Now is the time to prepare to send W-2s
It’s hard to believe, but 2017 is rapidly coming to a close, which means tax season is approaching. One of the important year-end tasks is preparing to send W-2s in January. As was the case for the 2016 tax year, employers again have an earlier deadline to file W-2s with the Social Security Administration. All forms […]
