Category Archives: Payroll

W-2 Goof

Hi! It’s TaxQuips time from Today TaxMama hears from Glenn in NY who tells us, “I have a question about W-2s and how they are compiled. I ask because there is a discrepancy between my year-end payroll stub and my W-2. The total on my W-2 was roughly $10,000 higher than on my yearly […]

Severance Pay

Today TaxMama hears from Jack who asks “I was laid off and received 46 weeks severance pay. My question is this. They deducted more income tax out of this check then they took out for a whole years pay. Is there a different tax for severance pay? I think it should be the same as […]

What am I?

Today TaxMama hears from Matt in Van Nuys, CA, who’s having an identity crisis. He asks, “”What am I” and when do I have to file? I’m a permanent employee at a company. In addition, I do work on the side (at home) as a Graphic Designer. I’ve registered the business name with the County […]

Consultant or Employee

Today TaxMama hears from Al from Monsey, NY wants to know, “If I am married and filing jointly; as a PC Programmer, should I get paid as an employee, with a W-2 or should I become a consultant and just freelance?”

Loan or Wages

Today TaxMama hears from Scott the Doc, “I’ve got a sticky question for you – nobody seems to know this one, not even my financial planner.  I am a resident physician, making a nominal salary.  I just signed a contract with a practice for next year – it contains a sign on bonus and monthly […]

Partners on Payroll

Today TaxMama hears from Allison who’s a bookkeeper in Angola, IN. She says, “I do the bookkeeping for 3 partners. They get paid by the mile for work they do and they split the money they make evenly each week. They want to be paid as employees so they don’t have to make estimated tax […]

Cleaning Up

Today TaxMama answers Laura on the Internet. Laura is concerned “I’ve hired two women who are doing business as “Simply Clean” to clean my home. They are not incorporated, just two ladies cleaning houses. If I pay $35.00 per week for part-time services, do I treat them as household employees? What do I have to […]

Withholding Too Much

Today TaxMama helps Bradley from Simi Valley, CA who laments. “I have been claiming 0 exemptions on my paycheck. Where is there a table I can see, so I’m not giving the IRS so much money, yet know how much to pay so I don’t owe anything at the end of the year?”

Not Flex-Time and Flex-Space

Today Steve from Waltham, MA wants to know what to do about an employee. “We have an employee who is currently living and working in MA. She is moving to Florida and would like to continue to work for our company in Florida (while still reporting to her same manager in MA). We agreed. My […]

Payroll Withholding

Today Sarah in Oregon is upset with her husband’s employer. “My husband’s work won’t change his payroll withholding to the amounts on his new W-4 until they hear from their attorney. So we are ending up with thousands of dollars taken out and sent in to the IRS and ODR that we need now. ”

Ask TaxMama Issue #1 – Merrily We Tax Along…

Ask TaxMama Merrily We Tax Along… Welcome to the first edition of Ask TaxMama. AskTaxMama will be published every two weeks. You will find the complete text of this issue on the site at Lower Standards For the first time in anyone’s memory, the IRS arrived at a standard mileage rate that was lower than […]