Everything you need to know about state income tax and reciprocity in California, as well as other helpful links for running a business in CA.
Posts published in “Tax”
Everything you need to know about Texas state income withholding tax, reciprocity agreements and other helpful information and links.
Everything you need to know about Maine's state income withholding tax, reciprocity agreements and other helpful information and links.
Everything you need to know about Massachusetts's state income withholding tax, reciprocity agreements and other helpful information and links.
Everything you need to know about Pennsylvania's state and local income withholding tax, reciprocity agreements and other helpful information and links.
Everything you need to know about Maryland's state income withholding tax, reciprocity agreements and other helpful information and links.
Everything you need to know about Florida state income withholding tax, reciprocity agreements and other helpful information and links.
Over the next few weeks, as your employees start to receive their 2022 W-2 form, they will most likely have many questions as to what all those numbers mean. For example, it is not uncommon for a salaried employee who earns $50,000 per year question why their Box 1 Wages only reflects $45,000. Did they get underpaid? Probably not. If the employee contributes to a pension plan (aka 401(k)) or has pre-tax insurance deductions, then those amounts reduces the “taxable” wage, which is what appears in Box 1. Some employees may also wonder why their Federal Income Tax withheld is…
Under the provisions of the American Federal Unemployment Tax Act (FUTA), a federal tax is levied on employers covered by the Unemployment Insurance program at a current rate of 6.0% on wages up to $7,000 a year, paid to a worker. The law, however, provides a credit (basically a discount) against federal tax liability of up to 5.4% to employers who pay state taxes timely under an approved state UI program. Therefore, the employer pays an effective federal tax of 0.6% or a maximum of $42 per covered worker, per year. During times of high unemployment claims, a state may…
Over the next few weeks, as your employees start to receive their 2021 W-2 form, they will most likely have many questions as to what all those numbers mean. For example, it is not uncommon for a salaried employee who earns $50,000 per year question why their Box 1 Wages only reflects $45,000. Did they get underpaid? Probably not. If the employee contributes to a pension plan (aka 401(k)) or has pre-tax insurance deductions, then those amounts reduces the “taxable” wage, which is what appears in Box 1. Some employees may also wonder why their Federal Income Tax withheld is…