Tag Archives: Federal Insurance Contributions Act tax

HIRE Act: Questions and Answers for Employers

Courtsey  of IRS Under the Hiring Incentives to Restore Employment (HIRE) Act, enacted March 18, 2010, two new tax benefits are available to employers who hire certain previously unemployed workers (“qualified employees”).

Tips on Tips

Today TaxMama hears from David in Arizona who got an unpleasant surprise. “I work for a restaurant that has not collected tip income info from our wait staff, and has not done any subsequent withholding. I am the lucky one who inherited payroll responsibility mid-year. I just learned of this oversight when prepping W2’s for […]

Beware – $181 Million Payroll Tax Fraud

Don’t let this happen to you! Outsourcing payroll duties to third-party service providers can streamline business operations but remember, you are ultimately responsible for paying federal tax liabilities. Beware – $181 Million Payroll Tax Fraud Orlando, Florida – United States Attorney A. Brian Albritton announces that U.S. District Judge John Antoon, II, today sentenced Frank […]

SSDI and Disability Income

Today TaxMama hears from Amy in Massachusetts who is worried. “I have been on disability benefits through a private policy and the benefits were not taxable. Now SSDI is going to pay a lump sum for back payments. Afterwards, I will be receiving about ½ my income from SSDI and ½ my income from the […]

First-Time Homebuyers Have Several Options to Maximize New Tax Credit

WASHINGTON — As part of the Treasury Department’s consumer outreach effort and with the April 15 individual tax filing deadline approaching, the Internal Revenue Service today began a concerted effort to educate taxpayers about additional options at their disposal to claim the new $8,000 first-time homebuyer credit for 2009 home purchases. For people who recently […]

401K While on Early Social Security

Today TaxMama hears from Larry in Texas. He has an interesting question. “I’m 63 and receiving social security retirement benefits. I work part-time. Will contributions to my company 401(k) reduce my taxable income? Specifically, will my contributions reduce my total income, enabling me to exceed the earnings limits for being under full retirement age?”

Avoiding Incorrect Self-Employed Retirement Deductions

FS-2008-24, July 2008 Retirement plans are not just for big businesses. They are also available for sole proprietorships. If you are self-employed small business owner, you can set up a qualified retirement plan for yourself and your employees. If you are a sole proprietor, you can deduct contributions you make to the plan for yourself. […]

Social Security and Medicare Changes for 2009

The Social Security Administration and Department of Health & Human Services have announced the new amounts for 2009. SOCIAL SECURITY CHANGES Social Security benefits increase 5.8% for 2009. The amount of earnings subject to Social Security taxes increases from $102,000 for 2008 to $106,800 for 2009. The amount of earnings required in order to receive […]

Withholding and W-4

Today TaxMama hears from Ron in Wisconsin who tells us. “I just got a job working full time for a salary of $18,000 per year. My wife does not work. We have 4 kids at home. How many dependents may I claim on my W-4 to avoid losing a bunch of money every week in […]

What was Withheld

Today TaxMama hears from a Vet in Virginia, who is perplexed. “In Sept 2000, I received a severance pay from the military. For Veterans Administration purposes, I needed to know if other taxes such as Medicare, FICA and state or any other taxes may have been deducted from this money. Looking at my 2000 tax […]