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
Further Reading
When Congress passed the Tax Cuts and Jobs Act (TCJA) of 2017, the expiration date for some of the provisions seemed far off. Now, the date...
Employers that don’t want to require employees to turn in receipts for business travel reimbursement can rely on per diem rates. T...
A physical therapy and rehabilitation clinic in Hawaii recently learned an expensive lesson about overtime compliance after a federal inves...
The Census Bureau requires businesses to complete the Economic Census to report on years ending in 2 and 7. With that in mind, watch out fo...
The IRS has finalized the tax year 2026 Form W-2, solidifying more of the reporting requirements established by federal legislation passed ...
A Little Caesars franchisee will pay $409,457 for federal wage and hour violations, the Department of Labor (DOL) recently announced. Th...
