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Depositing Withheld Taxes

Payroll Tax Deposit Rules Online payroll service, Futa tax and federal income tax withheld are discussed in the payroll articles below. Depositing Taxes In general, you must deposit federal income tax withheld and both the employer and Employee Social Security … Continue reading →

Lock-in letter – IRS Dictates Employee Withholding Amounts

The IRS has set up a program where it can dictate to an employer what an employee can withhold from their paycheck for Federal Income Tax purposes without any input from the employee and without a court order. Under the … Continue reading →

Form W4 FAQ

Federal Income Tax Withholding and Federal Form W-4 FAQ Can you claim 99 withholdings on a Form W-4? You can claim the number of withholding allowances that you are entitled to based on the Form W-4 (PDF), Employee’s Withholding Allowance … Continue reading →

Federal Income Tax Withholding

The federal income tax withholding is a pay-as- you-go tax. There are two ways to pay as you go. If you are an Employee, your employer probably withholds income tax from your pay. Tax may also be withheld from certain … Continue reading →

Workers’ Compensation Insurance

The workers’ compensation system may not appear to have anything to do with payroll, but actually it can have an effect in two distinct areas, benefits and premiums. Workers’ compensation is a form of insurance employers are generally required to … Continue reading →

Statutory Non Employees

Certain categories of workers, while they may qualify as Employees under the Common Law Test, are nevertheless treated under the IRC as independent contractors for federal income tax withholding and Social Security, Medicare, and FUTA tax purposes. They are known … Continue reading →

Statutory Employees

Statutory Employees are workers who, while they are not Employees under the common law, are treated as Employees for certain employment tax purposes. Payments made by an employer to Statutory Employee are not subject to federal income tax withholding, but … Continue reading →

Employee Vs. Independent Contractor

Many of the problems employers have in regard to worker classification arise when determining whether a worker is an Employee or an Independent Contractor. It may be cheaper to use independent contractor in a business than Employees because the taxing … Continue reading →