Category Archives: Tax Withholding

New Form W-4 (2016)

Purpose. Complete Form W-4 so that your employer can withhold the correct federal income tax from your pay. Consider completing a new Form W-4 each year and when your personal or financial situation changes. Exemption from withholding. If you are exempt, complete only lines 1, 2, 3, 4, and 7 and sign the form to… Read More »

Form 1099-MISC Miscellaneous Filing Requirement

Let’s spend a little time talking about Form 1099-MISC miscellaneous filing requirements, backup withholding and the recent increases to information return penalties. Even though businesses use the form 1099-MISC to report their payments to nonemployees to the IRS, the issue is so closely related to employment tax, that it bears discussion today. The Internal Revenue… Read More »

Backup Withholding and Form 1099 Miscellaneous

What is Backup Withholding and Form 1099? Backup withholding requirements may apply to information returns that you file. The most common information return backup withholding would be reported on Form 1099. You may be required to withhold a specified percentage of certain reportable payments made to recipients, payees, under the law.   Form W-9 and… Read More »

Setting Correct Tax Withholding in 2015

The IRS reminds taxpayers to pay taxes earlier, it is better and easier to select the correct amount of withholding tax than paying fines or penalties at tax time. In addition to wages, the IRS withholds other types of income, such as pensions, bonuses, commissions, and gambling winnings. Normally, taxpayers should attempt to match your withholding… Read More »