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...
This message was posted by a user wishing to remain anonymous We had a similar situation for 2023. The employee's visa status did change and he was supposed to have Social Security and Medicare wages and taxes reported. We amended all 4 quarters for the Form 941 to properly report the wages and...
This message was posted by a user wishing to remain anonymous I originally posted that I felt this was pyramiding. However, after giving more thought to it, in this case this is not pyramiding. Worked hours over 40 in a week should be counted as OT. The employer paying the OT rate for hours...
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...
This message was posted by a user wishing to remain anonymous Just to add, if you're wanting to check your payroll calculations, be sure you research what is excluded from regular rate of pay. Holiday is excluded (the 8 hours for the observed holiday - not the worked hours). Fact Sheet #56A:...
This message was posted by a user wishing to remain anonymous We have an employe who's VISA status changed, and payroll was never notified. No FICA taxes were withheld for the year. What corrections besides a W-2c form is needed. Should the employer be responsible for remitting the FICA taxes on...
If I understand your question correctly, I would say it is NOT pyramiding. Overtime is based on actual hours worked. Regardless if he received time and a half for working on the holiday, in my opinion, that is actually like a differential for working those holiday hours. Once he hits 40 hours in...
This message was posted by a user wishing to remain anonymous This is pyramiding as you are paying overtime pay on overtime worked.
PayrollOrg660 North Main AvenueSuite 100 San Antonio, Texas 78205USA
Contact Us
Phone+1 210 224 6406
JoinBenefitsLearn More
Terms of Use Privacy Policy