An individual can be completely exempt from withholding, but it’s not easy to receive that status. You can claim the exemption from withholding only if you had a right to a refund of all federal income tax withheld in the prior year because you didn’t have anytax liabilityand you expect...
People who notice that they get big refunds every year may want to consider filing a new Form W-4 with updated withholding allowance information so that they get more money in their monthly paychecks. On the other end of the scale, people who owe money each year and struggle to pay it c...
The new W-4 form, Employee's Withholding Certificate, does not have withholding allowances. Here's what you need to know for 2025.
Withholding Tax Explained: Types and How It's Calculated
Your adjusted gross income, or AGI, is an important line item on your taxes, as it affects your eligibility for certain tax benefits. The same is true of your modified adjusted gross income, or MAGI.
Self-employed individuals must pay their Social Security and Medicare tax liability on their own. It’s not uncommon for business owners to wonder if they are responsible for paying self-employment tax. Anyone who is self-employed must pay the tax. So, what does self-employed mean? You are...
At the end of the year, the total amounts you report on the four Form 941s for withholding from employee wages needs to equal the total of all amounts you report on the W-2 forms you distribute to employees, as well as the Form W-3 you send to the government. Form 941 filing dead...
Out of all the ways to carry out your business’s payroll process, automated payroll is the most popular and economical. What does a good payroll software look like? Try XPayroll for Free! Intuitive & Easy:A good payroll software isintuitiveand easy to operate. It should be easy to implem...
What Is Severance Pay and How Does It Work? Severance pay includes pay and benefits typically offered to employees who leave the company through no fault of their own. Employers may provide severance packages for people who lose their jobs due to layoffs, mergers, or downsizing. In addition to...
If you receive a check from a later work date first, it doesn't necessarily mean that the check from an earlier date is missing.If you need to place a stop payment, please fill out and follow the instructions on our stop pay/reissue request form. Stop payments usually take 7-10 days ...