The IRS Letter Ruling Nicole referred to is LTR 9511043.
Another reference is in PAYO's Guide to Federal and State Garnishment Laws. It states, "A 1994 IRS letter ruling clarified that the following items may be subtracted from an employee's gross wages when calculating take-home pay: Federal, state, and local taxes, even if the amounts increase while...
While I can't cite a specific source, I have always understood that IRS generally allows all deductions (voluntary and involuntary) in effect when the levy is first received to take priority -- in other words the amount levied is take-home pay minus the exemption amount from Publication 1494. If...
(1) Our comany recieved a federal tax levy for an employee (actually a K1 Partner). I learned a fed tax levy is take home pay - exempt amount per Pub1494. Another individual in the compant states it is disposable pay - exempt amount per Pub1494. Which is the correct way to determine the...
Last year, in our old system, we had to manually enter W4 info and there was a glitch so a new employee had no FIT withheld for about 4 months before he noticed. We worked with the employee and told him that if here was a large amount owing on his tax return we could do a loan so he could cover...
We receive these notices as well. If the employee is no longer employed I will respond as such in order to stop the notices. Our in-house counsel confirmed they are not legal garnishments and I have responded as @Melisa Leeds, CPP with similar verbiage. That has helped with the number of emails...
Hi Howard, for your 2 NRAs who are applying for resident/green card status, continue to treat them as NRAs until they provide documentation, or they meet the substantial presence test, whichever is earlier. Substantial presence factors depend on the type of visa they are on. https://www.irs.gov...
This message was posted by a user wishing to remain anonymous It's not just about the tax rules, as mentioned in other answers. You will need to be sure you are following California employment law for this employee, including payment of wages - frequency and timing, pay statement display, meal...
We have a couple non-resident aliens who have applied for either resident alien or permanent U.S. citizen status. Am I correct in thinking we must continue treating them as NRAs until they provide documentation that their status change is effective? Also, we have a NRA who says she will be...
The dark side! Well said Howard. States are fine going after this sort of thing as the profit makes it worthwhile. As I have answered this issue here and in my real life thousands of times, I am finally narrowing down to a stock response. It will now have a Goldman flair. Start by signing a $1...
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