Who Making Work Pay will hurt this tax season
Your Payroll and Benefits team may be dealing with some disgruntled workers come tax time this year.
Some employees didn’t have enough money withheld from their paychecks last year, as a result of the Making Work Pay tax credit. Result: These employees can end up with either smaller than expected tax refunds — or they could owe the IRS.
Here’s what happened: The Federal tax tables that determine withholding did not account for some of workers whose employment status complicated the tax credit calculation — employees with more than one job, Social Security recipients who still work, etc.
Overall, the Department of the Treasury is estimating that over 10% of taxpayers will end up owing additional taxes.
- Share on
Free Training & Resources
White Papers
Provided by Anaplan
White Papers
Provided by UJET
Further Reading
If someone qualifies as exempt from the overtime requirements of the Fair Labor Standards Act (FLSA), is an exempt classification mandatory...
Paying employees by direct deposit is convenient for all involved. But a recent court case is a reminder that funds could end up in cybercr...
A federal district court overturned the overtime rule that would have raised the minimum salary level for exempt employees on January 1, 20...
After more than a year, the IRS has made changes to Form 1099-MISC, Miscellaneous Information, and Form 1099-NEC, Nonemployee Compensation....
The IRS has updated its specs for e-filing Form 1099. If you’re using any independent contractors, you’ll need this info as you...
For most employers nationwide, the new salary threshold for who’s exempt from the federal overtime and minimum wage requirements took eff...
