The Tax Preparation Blog

Posts Tagged ‘payroll’

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Question: How can I compensate my employees (without paying taxes) for a project that was cancelled?

No work was actually performed and the employees were new hires. I want to compensate them because they agreed to work on the project for a specified period of time (some quit their existing jobs) and I was able to convince my client to compensate me for a portion of the cancelled project. I would like to provide my employees compensation without paying them a salary or bonus because all these have tax consequences (for me and them). For example, I have to pay workers comp and payroll taxes on their salary. ALso, my general liability and worker’s comp are based on total payroll. I called the California Employment Development Dept (responsible for payroll taxes etc) and they suggested giving a gift. But apparently this is not considered an expense. Any advice would be appreciated!

Answer: Any gift would be taxable as compensaton unless it is a token gift (usually worth less than $25). If you give them cash it is compensation. If you throw a big ole party and invite EVERYONE in the organization it can be 100% deductible. Depending on how much you wanted to spend you could just take the to a local restaurant and give em and open bar or you could fly them all to Vegas and have a heck of a good time.

Tax credit for small-business hiring barely tapped

A $400-million program set up in 2009 to encourage California small businesses to take on new employees has disbursed only $39.7 million. More than $360 million in small-business tax credits meant to spur hiring in California has been left on the table, raising concerns that the program wasn’t working and that the appropriation will be grabbed back by the cash-strapped state.

Carly Fiorina 7 Deadly Lies – Day 1: Payroll Tax Holiday

Question: IRS Tax deductions questions?

What is the table used by HR to figure your withholding federal tax on dependents.
Ex: If you make $31k and claim 4, you have less taken out then if you claim 0 or zero or even, 1.

Is there a table so I can figure out on my own what each dependent claim witholdings would be based on standard deductions in Texas, on your W-4?

Answer: Employers use IRS Pub 15, also known as Circular E for calculating the actual withholding from your pay.

You can get a quick and pretty accurate estimate at http://www.paycheckcity.com

This is a Special Report On United Nations

Published on September 21, 2010 by Kim R. Holmes, Ph.D. Special Report #85 Abstract : Multilateralism is not an end in itself. It is one of many foreign policy tools, admittedly a very important one, in the diplomatic kit.

Ron Paul’s Texas Straight Talk 2/22/10: Government Stimulus, One Year Later

Question: can i really deduct sales tax from groceries and clothes on my taxes?

im really lost about the sales tax deduction. add up receipts or use an amount from a tax table?? I could deduct state income tax from my W2 also??

Answer: You can either deduct state income tax OR sales tax – not both. Any simple tax software will figure out which one is higher (you don’t have to add up all your sales taxes paid, there is a formula used). Most likely state income tax is higher unless you bought a car or live in a state with no state taxes.

Tax Code Overhaul As Tough As Doing Your 1040

There’s broad agreement among economists that a new tax system should have few loopholes and relatively low tax rates. But that’s where the consensus ends. Rewriting the tax code in Washington is tricky, and as one tax expert put it, right now there is no politically feasible fix. read more

How to Calculate for Salary, Withholding Tax, etc. (Part 2)

Question: IRS Form 941 Line 3 – is that Individual Withholding + FICA.?

in going through my classwork, Line 3 asks for income tax withheld. when I calculate payroll, I see that I have it broken down.. Federal Withing per tax table 15-T from the persons W-4 exemptions, then FICA. is it both, or just Personal Individual one withheld.

Answer: No, just withholding, FICA goes on line 5.

Morris freeholders want reforms for state Association of Counties

The Morris County freeholders said Wednesday they will pay the annual $14,000 dues to the New Jersey Association of Counties to ensure that Freeholder Douglas Cabana would be allowed to serve on a committee reviewing an audit of the association, but would stop that payment if they are not satisfied with reforms proposed for the association.

Tax Tip: Withholding Calculator – January 2010

Question: How are illegal immigrants ruining the economy?

Ok, so maybe most of these illegal immigrants work under the table tax free..and maybe the lie about their income and apply for government assistance and maybe they steal some legal jobs from us non-illegals because those jobs fail to do complete background checks to see if they are legal…but….how are they ruining the economy?

http://www.nj.com/news/index.ssf/2008/12/immigration_laws_weak_economy.html

Answer: Ruining the economy ? We did that ourselves by purchasing things and taking out loans that we could not afford.

But there are problems related to illegal immigration. A large number were found to be using citizen’s social security numbers to work and to claim government benefits. Identity theft is a problem and so is leeching off an already bloated government system.

Here’s a story about one recent investigation :

http://www.washingtonpost.com/wp-dyn/articles/A33783-2004Aug25.html

“Households headed by illegal aliens imposed more than $26.3 billion in costs on the federal government in 2002 and paid only $16 billion in taxes, creating a net fiscal deficit of $10.4 billion, or $2,700 per illegal household,” said Steven A. Camarota, author of the study.

U.S states embrace sputtering casinos to plug gaps

U.S states embrace sputtering casinos to plug gaps

Tax Law Changes Affecting 2008 Tax Returns