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Amended Return

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Amended Return

Amended return Part Five -   Deducción Estándar y Deducciones Detalladas Después de calcular su ingreso bruto ajustado, entonces puede restar las deducciones utilizadas para calcular los ingresos tributables. Amended return Puede restar la deducción estándar o las deducciones detalladas. Amended return Las deducciones detalladas son deducciones por determinados gastos enumerados en el Anexo A (Formulario 1040). Amended return Los diez capítulos de esta sección tratan sobre la deducción estándar, cada deducción detallada y el límite sobre algunas de sus deducciones detalladas si su ingreso bruto ajustado es mayor que ciertas cantidades. Amended return Vea el capítulo 20 para saber qué factores debe tener en cuenta al decidir si debe restar o no la deducción estándar o las deducciones detalladas. Amended return Table of Contents 20. Amended return   Deducción EstándarQué Hay de Nuevo Introduction Cantidad de la Deducción Estándar Deducción Estándar para DependientesDefinición del ingreso del trabajo. Amended return Quién Debe Detallar las DeduccionesCuándo detallar las deducciones. Amended return Personas casadas que presentan la declaración por separado. Amended return 21. Amended return   Gastos Médicos y DentalesQué Hay de Nuevo Introduction Useful Items - You may want to see: ¿Qué Son Gastos Médicos? ¿Qué Gastos Puede Incluir Este Año?Estados donde rige la ley de los bienes gananciales. Amended return ¿Qué Cantidad de los Gastos Puede Deducir? ¿De Qué Personas Puede Incluir Gastos Médicos?Usted Cónyuge Dependiente Difuntos ¿Qué Gastos Médicos se Pueden Incluir?Primas de Seguros Comidas y Alojamiento Transporte Gastos del Cuidado de un Dependiente Incapacitado ¿Cómo se Tratan los Reembolsos?Reembolso de Seguros Indemnizaciones por Lesiones Personales Cómo Calcular y Reclamar la Deducción en su Declaración de Impuestos¿Qué Formulario Debe Usar para la Declaración? Gastos de Trabajo Relacionados con un Impedimento Costos del Seguro Médico para Personas que Trabajan por Cuenta Propia 22. Amended return   ImpuestosIntroductionGobierno tribal de indios estadounidenses. Amended return Useful Items - You may want to see: Requisitos para Deducir Todo Impuesto Impuestos sobre los IngresosImpuestos Estatales y Locales sobre los Ingresos Impuestos Extranjeros sobre los Ingresos Impuestos Generales sobre las VentasVehículos de motor. Amended return Impuestos sobre Bienes RaícesImpuestos sobre bienes raíces de años anteriores. Amended return Ejemplos. Amended return Formulario 1099-S. Amended return Cantidades Relacionadas con Bienes Raíces que no Puede Deducir Impuestos sobre Bienes Muebles Impuestos y Cargos que no Puede Deducir Dónde se Anotan las Deducciones 23. Amended return   Gastos de InteresesIntroduction Useful Items - You may want to see: Intereses Hipotecarios de ViviendaCantidad Deducible Puntos Primas de Seguro Hipotecario Formulario 1098, Estado de Cuenta de los Intereses Hipotecarios Intereses Procedentes de InversionesBienes de Inversión Asignación de Gastos de Intereses Límite sobre la Deducción Cantidades que No Puede DeducirIntereses Personales Asignación de Intereses Cómo Hacer la DeclaraciónMás de un prestatario. Amended return Fondos procedentes de una hipoteca utilizados para negocios o inversiones. Amended return 24. Amended return   DonacionesIntroduction Useful Items - You may want to see: Organizaciones que Reúnen los Requisitos para Recibir Donaciones DeduciblesTipos de Organizaciones Calificadas Donaciones que Puede DeducirDonaciones de las Cuales Usted se Beneficia Gastos Pagados a Nombre de un Estudiante que Vive con Usted Gastos de Bolsillo al Prestar Servicios Donaciones que no Puede DeducirDonaciones Hechas a Personas Físicas Donaciones Hechas a Organizaciones no Calificadas Donaciones de las Cuales Usted se Beneficia Valor de Tiempo o Servicios Gastos Personales Cargos de Tasación Donaciones de BienesExcepción. Amended return Artículos domésticos. Amended return Deducción de más de $500. Amended return Formulario 1098-C. Amended return Se acerca el plazo para la presentación de la declaración y aún no tiene el Formulario 1098-C. Amended return Excepción 1: vehículo usado o mejorado por la organización. Amended return Excepción 2: vehículo donado o vendido a una persona necesitada. Amended return Deducción de $500 o menos. Amended return Derecho al uso de los bienes. Amended return Bienes muebles tangibles. Amended return Intereses futuros. Amended return Determinación del Valor Justo de Mercado Donación de Bienes Cuyo Valor ha Disminuido Donación de Bienes Cuyo Valor ha Aumentado Cuándo Puede Deducir sus DonacionesCheques. Amended return Mensaje de texto. Amended return Tarjeta de crédito. Amended return Pago telefónico. Amended return Título de acciones. Amended return Pagaré. Amended return Opción. Amended return Fondos de un préstamo. Amended return Límites sobre DeduccionesCantidades Trasladadas al Año Siguiente Documentación que se Debe MantenerDonaciones en Efectivo Donaciones que no Sean en Efectivo Gastos de Bolsillo Cómo Declarar las Donaciones Caritativas 25. Amended return   Pérdidas por Hecho Fortuito y Robo no Relacionadas con los NegociosQué Hay de Nuevo Introduction Useful Items - You may want to see: Hecho FortuitoMascota de la familia. Amended return Deterioro progresivo. Amended return Daños ocasionados por paneles de yeso (drywall) corrosivos. Amended return Robo Pérdidas de Depósitos Comprobación de las Pérdidas Cómo Calcular una PérdidaDisminución del Valor Justo de Mercado Base Ajustada Seguro y Otros Reembolsos Un Solo Hecho Fortuito en Bienes Múltiples Límites de la DeducciónRegla de los $100 Regla del 10% Cuándo Declarar Ganancias y PérdidasPérdidas en Zonas de Desastre Cómo Declarar Ganancias y Pérdidas 26. Amended return   Gastos de Automóvil y Otros Gastos de Negocio del EmpleadoQué Hay de Nuevo Introduction Useful Items - You may want to see: Gastos de ViajeViajes Lejos de Su Domicilio Domicilio Tributario Trabajo o Asignación Temporal ¿Qué Gastos de Viaje se Pueden Deducir? Viajes en los Estados Unidos Viajes Fuera de los Estados Unidos Convenciones Gastos de EntretenimientoLímite del 50% ¿Qué Gastos de Entretenimiento se Pueden Deducir? ¿Qué Gastos de Entretenimiento no se Pueden Deducir? Gastos por Regalos Gastos de TransportePersonal en Reserva de las Fuerzas Armadas. Amended return Cargos de estacionamiento. Amended return Publicidad en el automóvil. Amended return Uso compartido de automóviles. Amended return Transporte de herramientas o instrumentos. Amended return Gastos de desplazamiento de sindicalistas desde el centro del sindicato. Amended return Gastos de Automóvil Mantenimiento de DocumentaciónCómo Demostrar los Gastos Cuánto Tiempo Tiene que Guardar Documentación y Recibos Cómo Hacer la DeclaraciónRegalos. Amended return Empleados estatutarios. Amended return Reembolsos Cómo Llenar los Formularios 2106 y 2106-EZ Reglas Especiales 27. Amended return   Beneficios Tributarios para Estudios Relacionados con el TrabajoQué Hay de Nuevo Introduction Useful Items - You may want to see: Estudios Relacionados con el Trabajo que Reúnen los Requisitos de la DeducciónEstudios Requeridos por el Empleador o por Ley Estudios para Mantener o Mejorar Destrezas Estudios para Satisfacer los Requisitos Mínimos Estudios que lo Capacitan para un Nuevo Oficio o Negocio Qué Gastos se Pueden Deducir Reembolso no reclamado. Amended return Gastos de Transporte Gastos de Viaje No se Permiten Beneficios Dobles Reembolsos Cómo Deducir Gastos de NegociosPersonas que Trabajan por Cuenta Propia Empleados Artistas del Espectáculo y Funcionarios a los que se les Pagan Honorarios Gastos de Trabajo Relacionados con un Impedimento Documentación 28. Amended return   Deducciones MisceláneasQué Hay de Nuevo Introduction Useful Items - You may want to see: Deducciones Sujetas al Límite del 2%Gastos del Empleado no Reembolsados (Línea 21) Costos de la Preparación de la Declaración de Impuestos (Línea 22) Otros Gastos (Línea 23) Deducciones no Sujetas al Límite del 2%Lista de Deducciones Gastos no DeduciblesLista de Gastos no Deducibles 29. Amended return   Límite sobre Deducciones DetalladasIntroduction Useful Items - You may want to see: ¿Está Usted Sujeto al Límite? ¿Qué Deducciones Detalladas Están Limitadas? ¿Qué Deducciones Detalladas no Están Limitadas? ¿Cómo se Calcula el Límite?Ejemplo Prev  Up  Next   Home   More Online Publications
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Abusive Return Preparer - Criminal Investigation (CI)

Overview - Abusive Return Preparer
Criminal Investigation Return Preparer Program (RPP) establishes procedures to foster compliance by identifying, investigating and prosecuting abusive return preparers

Definition - Abusive Return Preparer
A Return Preparer is defined as any person (including a partnership or corporation) who prepares for compensation all or a substantial portion of a tax return or claim for refund under the income tax provisions of the Internal Revenue Code

Return Preparation and Electronic Filing - Abusive Return Preparer
The advent of electronic filing of income tax returns by electronic return transmitters has provided a new mechanism for unscrupulous preparers to commit fraud

Tactics Used by Dishonest Abusive Return Preparers
Dishonest tax preparers use a variety of methods to formulate fraudulent and illegal deductions reducing taxable income

Helpful Hints when choosing a Return Preparer to ensure you don't hire an Abusive Return Preparer
When preparing your tax return remember ...

Statistical Data - Abusive Return Preparers
Enforcement statistics on investigations initiated, prosecutions recommended, indictments, sentencings and months to serve in prison.

Examples of Abusive Return Preparer Investigations
Examples have been written from public record documents filed in the district courts where the case was prosecuted.

Reporting Fraud and Abuse Within the IRS E-File Program
You should report fraudulent or abusive returns, including those with questionable Forms W2

 


Criminal Enforcement Home Page

How to Report Suspected Tax Fraud Activities

Page Last Reviewed or Updated: 30-Oct-2013

The Amended Return

Amended return Publication 15 - Main Content Table of Contents 1. Amended return Employer Identification Number (EIN) 2. Amended return Who Are Employees?Relief provisions. Amended return Business Owned and Operated by Spouses 3. Amended return Family Employees 4. Amended return Employee's Social Security Number (SSN)Registering for SSNVS. Amended return 5. Amended return Wages and Other CompensationAccountable plan. Amended return Nonaccountable plan. Amended return Per diem or other fixed allowance. Amended return 50% test. Amended return Health Savings Accounts and medical savings accounts. Amended return Nontaxable fringe benefits. Amended return When fringe benefits are treated as paid. Amended return Valuation of fringe benefits. Amended return Withholding on fringe benefits. Amended return Depositing taxes on fringe benefits. Amended return 6. Amended return TipsOrdering rule. Amended return 7. Amended return Supplemental Wages 8. Amended return Payroll Period 9. Amended return Withholding From Employees' WagesIncome Tax Withholding Social Security and Medicare Taxes Part-Time Workers 10. Amended return Required Notice to Employees About the Earned Income Credit (EIC) 11. Amended return Depositing TaxesWhen To Deposit How To Deposit Deposit Penalties 12. Amended return Filing Form 941 or Form 944 13. Amended return Reporting Adjustments to Form 941 or Form 944Current Period Adjustments Prior Period Adjustments Wage Repayments 14. Amended return Federal Unemployment (FUTA) TaxSuccessor employer. Amended return Household employees. Amended return When to deposit. Amended return Household employees. Amended return Electronic filing by reporting agents. Amended return 16. Amended return How To Use the Income Tax Withholding TablesWage Bracket Method Percentage Method Alternative Methods of Income Tax Withholding How To Get Tax Help 1. Amended return Employer Identification Number (EIN) If you are required to report employment taxes or give tax statements to employees or annuitants, you need an EIN. Amended return The EIN is a nine-digit number the IRS issues. Amended return The digits are arranged as follows: 00-0000000. Amended return It is used to identify the tax accounts of employers and certain others who have no employees. Amended return Use your EIN on all of the items you send to the IRS and SSA. Amended return For more information, see Publication 1635, Employer Identification Number: Understanding Your EIN. Amended return If you do not have an EIN, you may apply for one online. Amended return Go to the IRS. Amended return gov and click on the Apply for an EIN Online link under Tools. Amended return You may also apply for an EIN by calling 1-800-829-4933, or you can fax or mail Form SS-4, Application for Employer Identification Number, to the IRS. Amended return Do not use an SSN in place of an EIN. Amended return You should have only one EIN. Amended return If you have more than one and are not sure which one to use, call 1-800-829-4933 or 1-800-829-4059 (TDD/TTY for persons who are deaf, hard of hearing, or have a speech disability). Amended return Give the numbers you have, the name and address to which each was assigned, and the address of your main place of business. Amended return The IRS will tell you which number to use. Amended return If you took over another employer's business (see Successor employer in section 9), do not use that employer's EIN. Amended return If you have applied for an EIN but do not have your EIN by the time a return is due, file a paper return and write “Applied For” and the date you applied for it in the space shown for the number. Amended return 2. Amended return Who Are Employees? Generally, employees are defined either under common law or under statutes for certain situations. Amended return See Publication 15-A for details on statutory employees and nonemployees. Amended return Employee status under common law. Amended return   Generally, a worker who performs services for you is your employee if you have the right to control what will be done and how it will be done. Amended return This is so even when you give the employee freedom of action. Amended return What matters is that you have the right to control the details of how the services are performed. Amended return See Publication 15-A for more information on how to determine whether an individual providing services is an independent contractor or an employee. Amended return   Generally, people in business for themselves are not employees. Amended return For example, doctors, lawyers, veterinarians, and others in an independent trade in which they offer their services to the public are usually not employees. Amended return However, if the business is incorporated, corporate officers who work in the business are employees of the corporation. Amended return   If an employer-employee relationship exists, it does not matter what it is called. Amended return The employee may be called an agent or independent contractor. Amended return It also does not matter how payments are measured or paid, what they are called, or if the employee works full or part time. Amended return Statutory employees. Amended return   If someone who works for you is not an employee under the common law rules discussed earlier, do not withhold federal income tax from his or her pay, unless backup withholding applies. Amended return Although the following persons may not be common law employees, they are considered employees by statute for social security, Medicare, and FUTA tax purposes under certain conditions. Amended return An agent (or commission) driver who delivers food, beverages (other than milk), laundry, or dry cleaning for someone else. Amended return A full-time life insurance salesperson who sells primarily for one company. Amended return A homeworker who works by guidelines of the person for whom the work is done, with materials furnished by and returned to that person or to someone that person designates. Amended return A traveling or city salesperson (other than an agent-driver or commission-driver) who works full time (except for sideline sales activities) for one firm or person getting orders from customers. Amended return The orders must be for merchandise for resale or supplies for use in the customer's business. Amended return The customers must be retailers, wholesalers, contractors, or operators of hotels, restaurants, or other businesses dealing with food or lodging. Amended return    Statutory nonemployees. Amended return   Direct sellers, qualified real estate agents, and certain companion sitters are, by law, considered nonemployees. Amended return They are generally treated as self-employed for all federal tax purposes, including income and employment taxes. Amended return H-2A agricultural workers. Amended return   On Form W-2, do not check box 13 (Statutory employee), as H-2A workers are not statutory employees. Amended return Treating employees as nonemployees. Amended return   You will generally be liable for social security and Medicare taxes and withheld income tax if you do not deduct and withhold these taxes because you treated an employee as a nonemployee. Amended return You may be able to calculate your liability using special section 3509 rates for the employee share of social security and Medicare taxes and the federal income tax withholding. Amended return The applicable rates depend on whether you filed required Forms 1099. Amended return You cannot recover the employee share of social security, or Medicare tax, or income tax withholding from the employee if the tax is paid under section 3509. Amended return You are liable for the income tax withholding regardless of whether the employee paid income tax on the wages. Amended return You continue to owe the full employer share of social security and Medicare taxes. Amended return The employee remains liable for the employee share of social security and Medicare taxes. Amended return See Internal Revenue Code section 3509 for details. Amended return Also see the Instructions for Form 941-X. Amended return   Section 3509 rates are not available if you intentionally disregard the requirement to withhold taxes from the employee or if you withheld income taxes but not social security or Medicare taxes. Amended return Section 3509 is not available for reclassifying statutory employees. Amended return See Statutory employees , earlier in this section. Amended return   If the employer issued required information returns, the section 3509 rates are: For social security taxes; employer rate of 6. Amended return 2% plus 20% of the employee rate (see the Instructions for Form 941-X). Amended return For Medicare taxes; employer rate of 1. Amended return 45% plus 20% of the employee rate of 1. Amended return 45%, for a total rate of 1. Amended return 74% of wages. Amended return For Additional Medicare Tax; 0. Amended return 18% (20% of the employee rate of 0. Amended return 9%) of wages subject to Additional Medicare Tax. Amended return For income tax withholding, the rate is 1. Amended return 5% of wages. Amended return   If the employer did not issue required information returns, the section 3509 rates are: For social security taxes; employer rate of 6. Amended return 2% plus 40% of the employee rate (see the Instructions for Form 941-X). Amended return For Medicare taxes; employer rate of 1. Amended return 45% plus 40% of the employee rate of 1. Amended return 45%, for a total rate of 2. Amended return 03% of wages. Amended return For Additional Medicare Tax; 0. Amended return 36% (40% of the employee rate of 0. Amended return 9%) of wages subject to Additional Medicare Tax. Amended return For income tax withholding, the rate is 3. Amended return 0% of wages. Amended return Relief provisions. Amended return   If you have a reasonable basis for not treating a worker as an employee, you may be relieved from having to pay employment taxes for that worker. Amended return To get this relief, you must file all required federal tax returns, including information returns, on a basis consistent with your treatment of the worker. Amended return You (or your predecessor) must not have treated any worker holding a substantially similar position as an employee for any periods beginning after 1977. Amended return See Publication 1976, Do You Qualify for Relief Under Section 530. Amended return IRS help. Amended return   If you want the IRS to determine whether a worker is an employee, file Form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding. Amended return Voluntary Classification Settlement Program (VCSP). Amended return   Employers who are currently treating their workers (or a class or group of workers) as independent contractors or other nonemployees and want to voluntarily reclassify their workers as employees for future tax periods may be eligible to participate in the VCSP if certain requirements are met. Amended return To apply, use Form 8952, Application for Voluntary Classification Settlement Program (VCSP). Amended return For more information visit IRS. Amended return gov and enter “VCSP” in the search box. Amended return Business Owned and Operated by Spouses If you and your spouse jointly own and operate a business and share in the profits and losses, you are partners in a partnership, whether or not you have a formal partnership agreement. Amended return See Publication 541, Partnerships, for more details. Amended return The partnership is considered the employer of any employees, and is liable for any employment taxes due on wages paid to its employees. Amended return Exception—Qualified joint venture. Amended return   For tax years beginning after December 31, 2006, the Small Business and Work Opportunity Tax Act of 2007 (Public Law 110-28) provides that a “qualified joint venture,” whose only members are spouses filing a joint income tax return, can elect not to be treated as a partnership for federal tax purposes. Amended return A qualified joint venture conducts a trade or business where: The only members of the joint venture are spouses who file a joint income tax return, Both spouses materially participate (see Material participation in the Instructions for Schedule C (Form 1040), line G) in the trade or business (mere joint ownership of property is not enough), Both spouses elect to not be treated as a partnership, and The business is co-owned by both spouses and is not held in the name of a state law entity such as a partnership or limited liability company (LLC). Amended return   To make the election, all items of income, gain, loss, deduction, and credit must be divided between the spouses, in accordance with each spouse's interest in the venture, and reported on separate Schedules C or F as sole proprietors. Amended return Each spouse must also file a separate Schedule SE to pay self-employment taxes, as applicable. Amended return   Spouses using the qualified joint venture rules are treated as sole proprietors for federal tax purposes and generally do not need an EIN. Amended return If employment taxes are owed by the qualified joint venture, either spouse may report and pay the employment taxes due on the wages paid to the employees using the EIN of that spouse's sole proprietorship. Amended return Generally, filing as a qualified joint venture will not increase the spouses' total tax owed on the joint income tax return. Amended return However, it gives each spouse credit for social security earnings on which retirement benefits are based and for Medicare coverage without filing a partnership return. Amended return    Note. Amended return If your spouse is your employee, not your partner, see One spouse employed by another in section 3. Amended return   For more information on qualified joint ventures, visit IRS. Amended return gov and enter “qualified joint venture” in the search box. Amended return Exception—Community income. Amended return   If you and your spouse wholly own an unincorporated business as community property under the community property laws of a state, foreign country, or U. Amended return S. Amended return possession, you can treat the business either as a sole proprietorship (of the spouse who carried on the business) or a partnership. Amended return You may still make an election to be taxed as a qualified joint venture instead of a partnership. Amended return See Exception—Qualified joint venture , earlier. Amended return 3. Amended return Family Employees Child employed by parents. Amended return   Payments for the services of a child under age 18 who works for his or her parent in a trade or business are not subject to social security and Medicare taxes if the trade or business is a sole proprietorship or a partnership in which each partner is a parent of the child. Amended return If these payments are for work other than in a trade or business, such as domestic work in the parent's private home, they are not subject to social security and Medicare taxes until the child reaches age 21. Amended return However, see Covered services of a child or spouse , later in this section. Amended return Payments for the services of a child under age 21 who works for his or her parent, whether or not in a trade or business, are not subject to FUTA tax. Amended return Payments for the services of a child of any age who works for his or her parent are generally subject to income tax withholding unless the payments are for domestic work in the parent's home, or unless the payments are for work other than in a trade or business and are less than $50 in the quarter or the child is not regularly employed to do such work. Amended return One spouse employed by another. Amended return   The wages for the services of an individual who works for his or her spouse in a trade or business are subject to income tax withholding and social security and Medicare taxes, but not to FUTA tax. Amended return However, the payments for services of one spouse employed by another in other than a trade or business, such as domestic service in a private home, are not subject to social security, Medicare, and FUTA taxes. Amended return Covered services of a child or spouse. Amended return   The wages for the services of a child or spouse are subject to income tax withholding as well as social security, Medicare, and FUTA taxes if he or she works for: A corporation, even if it is controlled by the child's parent or the individual's spouse; A partnership, even if the child's parent is a partner, unless each partner is a parent of the child; A partnership, even if the individual's spouse is a partner; or An estate, even if it is the estate of a deceased parent. Amended return Parent employed by son or daughter. Amended return   When the employer is a son or daughter employing his or her parent the following rules apply. Amended return Payments for the services of a parent in the son’s or daughter’s (the employer’s) trade or business are subject to income tax withholding and social security and Medicare taxes. Amended return Payments for the services of a parent not in the son’s or daughter’s (the employer’s) trade or business are generally not subject to social security and Medicare taxes. Amended return    Social security and Medicare taxes do apply to payments made to a parent for domestic services if all of the following apply: The parent is employed by his or her son or daughter; The son or daughter (the employer) has a child or stepchild living in the home; The son or daughter (the employer) is a widow or widower, divorced, or living with a spouse who, because of a mental or physical condition, cannot care for the child or stepchild for at least 4 continuous weeks in a calendar quarter; and The child or stepchild is either under age 18 or requires the personal care of an adult for at least 4 continuous weeks in a calendar quarter due to a mental or physical condition. Amended return   Payments made to a parent employed by his or her child are not subject to FUTA tax, regardless of the type of services provided. Amended return 4. Amended return Employee's Social Security Number (SSN) You are required to get each employee's name and SSN and to enter them on Form W-2. Amended return This requirement also applies to resident and nonresident alien employees. Amended return You should ask your employee to show you his or her social security card. Amended return The employee may show the card if it is available. Amended return Do not accept a social security card that says “Not valid for employment. Amended return ” A social security number issued with this legend does not permit employment. Amended return You may, but are not required to, photocopy the social security card if the employee provides it. Amended return If you do not provide the correct employee name and SSN on Form W-2, you may owe a penalty unless you have reasonable cause. Amended return See Publication 1586, Reasonable Cause Regulations & Requirements for Missing and Incorrect Name/TINs, for information on the requirement to solicit the employee's SSN. Amended return Applying for a social security card. Amended return   Any employee who is legally eligible to work in the United States and does not have a social security card can get one by completing Form SS-5, Application for a Social Security Card, and submitting the necessary documentation. Amended return You can get Form SS-5 at SSA offices, by calling 1-800-772-1213, or from the SSA website at www. Amended return socialsecurity. Amended return gov/online/ss-5. Amended return html. Amended return The employee must complete and sign Form SS-5; it cannot be filed by the employer. Amended return You may be asked to supply a letter to accompany Form SS-5 if the employee has exceeded his or her yearly or lifetime limit for the number of replacement cards allowed. Amended return Applying for a social security number. Amended return   If you file Form W-2 on paper and your employee applied for an SSN but does not have one when you must file Form W-2, enter “Applied For” on the form. Amended return If you are filing electronically, enter all zeros (000-00-000) in the social security number field. Amended return When the employee receives the SSN, file Copy A of Form W-2c, Corrected Wage and Tax Statement, with the SSA to show the employee's SSN. Amended return Furnish copies B, C, and 2 of Form W-2c to the employee. Amended return Up to 25 Forms W-2c for each Form W-3c, Transmittal of Corrected Wage and Tax Statements, may now be filed per session over the Internet, with no limit on the number of sessions. Amended return For more information, visit the SSA's Employer W-2 Filing Instructions & Information webpage at www. Amended return socialsecurity. Amended return gov/employer. Amended return Advise your employee to correct the SSN on his or her original Form W-2. Amended return Correctly record the employee's name and SSN. Amended return   Record the name and number of each employee as they are shown on the employee's social security card. Amended return If the employee's name is not correct as shown on the card (for example, because of marriage or divorce), the employee should request a corrected card from the SSA. Amended return Continue to report the employee's wages under the old name until the employee shows you an updated social security card with the new name. Amended return If the SSA issues the employee a replacement card after a name change, or a new card with a different social security number after a change in alien work status, file a Form W-2c to correct the name/SSN reported for the most recently filed Form W-2. Amended return It is not necessary to correct other years if the previous name and number were used for years before the most recent Form W-2. Amended return IRS individual taxpayer identification numbers (ITINs) for aliens. Amended return   Do not accept an ITIN in place of an SSN for employee identification or for work. Amended return An ITIN is only available to resident and nonresident aliens who are not eligible for U. Amended return S. Amended return employment and need identification for other tax purposes. Amended return You can identify an ITIN because it is a nine-digit number, beginning with the number “9” with either a “7” or “8” as the fourth digit and is formatted like an SSN (for example, 9NN-7N-NNNN). Amended return    An individual with an ITIN who later becomes eligible to work in the United States must obtain an SSN. Amended return If the individual is currently eligible to work in the United States, instruct the individual to apply for an SSN and follow the instructions under Applying for a social security number, earlier. Amended return Do not use an ITIN in place of an SSN on Form W-2. Amended return Verification of social security numbers. Amended return   Employers and authorized reporting agents can use the Social Security Number Verification Service (SSNVS) to instantly verify up to 10 names and SSNs (per screen) at a time, or submit an electronic file of up to 250,000 names and SSNs and usually receive the results the next business day. Amended return Visit www. Amended return socialsecurity. Amended return gov/employer/ssnv. Amended return htm for more information. Amended return Registering for SSNVS. Amended return   You must register online and receive authorization from your employer to use SSNVS. Amended return To register, visit SSA's website at www. Amended return ssa. Amended return gov/employer and click on the Business Services Online link. Amended return Follow the registration instructions to obtain a user identification (ID) and password. Amended return You will need to provide the following information about yourself and your company. Amended return Name. Amended return SSN. Amended return Date of birth. Amended return Type of employer. Amended return EIN. Amended return Company name, address, and telephone number. Amended return Email address. Amended return   When you have completed the online registration process, SSA will mail a one-time activation code to your employer. Amended return You must enter the activation code online to use SSNVS. Amended return 5. Amended return Wages and Other Compensation Wages subject to federal employment taxes generally include all pay you give to an employee for services performed. Amended return The pay may be in cash or in other forms. Amended return It includes salaries, vacation allowances, bonuses, commissions, and fringe benefits. Amended return It does not matter how you measure or make the payments. Amended return Amounts an employer pays as a bonus for signing or ratifying a contract in connection with the establishment of an employer-employee relationship and an amount paid to an employee for cancellation of an employment contract and relinquishment of contract rights are wages subject to social security, Medicare, and FUTA taxes and income tax withholding. Amended return Also, compensation paid to a former employee for services performed while still employed is wages subject to employment taxes. Amended return More information. Amended return   See section 6 for a discussion of tips and section 7 for a discussion of supplemental wages. Amended return Also, see section 15 for exceptions to the general rules for wages. Amended return Publication 15-A provides additional information on wages, including nonqualified deferred compensation, and other compensation. Amended return Publication 15-B provides information on other forms of compensation, including: Accident and health benefits, Achievement awards, Adoption assistance, Athletic facilities, De minimis (minimal) benefits, Dependent care assistance, Educational assistance, Employee discounts, Employee stock options, Employer-provided cell phones, Group-term life insurance coverage, Health Savings Accounts, Lodging on your business premises, Meals, Moving expense reimbursements, No-additional-cost services, Retirement planning services, Transportation (commuting) benefits, Tuition reduction, and Working condition benefits. Amended return Employee business expense reimbursements. Amended return   A reimbursement or allowance arrangement is a system by which you pay the advances, reimbursements, and charges for your employees' business expenses. Amended return How you report a reimbursement or allowance amount depends on whether you have an accountable or a nonaccountable plan. Amended return If a single payment includes both wages and an expense reimbursement, you must specify the amount of the reimbursement. Amended return   These rules apply to all ordinary and necessary employee business expenses that would otherwise qualify for a deduction by the employee. Amended return Accountable plan. Amended return   To be an accountable plan, your reimbursement or allowance arrangement must require your employees to meet all three of the following rules. Amended return They must have paid or incurred deductible expenses while performing services as your employees. Amended return The reimbursement or advance must be paid for the expense and must not be an amount that would have otherwise been paid by the employee. Amended return They must substantiate these expenses to you within a reasonable period of time. Amended return They must return any amounts in excess of substantiated expenses within a reasonable period of time. Amended return   Amounts paid under an accountable plan are not wages and are not subject to income, social security, Medicare, and FUTA taxes. Amended return   If the expenses covered by this arrangement are not substantiated (or amounts in excess of substantiated expenses are not returned within a reasonable period of time), the amount paid under the arrangement in excess of the substantiated expenses is treated as paid under a nonaccountable plan. Amended return This amount is subject to income, social security, Medicare, and FUTA taxes for the first payroll period following the end of the reasonable period of time. Amended return   A reasonable period of time depends on the facts and circumstances. Amended return Generally, it is considered reasonable if your employees receive their advance within 30 days of the time they incur the expenses, adequately account for the expenses within 60 days after the expenses were paid or incurred, and return any amounts in excess of expenses within 120 days after the expenses were paid or incurred. Amended return Also, it is considered reasonable if you give your employees a periodic statement (at least quarterly) that asks them to either return or adequately account for outstanding amounts and they do so within 120 days. Amended return Nonaccountable plan. Amended return   Payments to your employee for travel and other necessary expenses of your business under a nonaccountable plan are wages and are treated as supplemental wages and subject to income, social security, Medicare, and FUTA taxes. Amended return Your payments are treated as paid under a nonaccountable plan if: Your employee is not required to or does not substantiate timely those expenses to you with receipts or other documentation, You advance an amount to your employee for business expenses and your employee is not required to or does not return timely any amount he or she does not use for business expenses, You advance or pay an amount to your employee regardless of whether you reasonably expect the employee to have business expenses related to your business, or You pay an amount as a reimbursement you would have otherwise paid as wages. Amended return   See section 7 for more information on supplemental wages. Amended return Per diem or other fixed allowance. Amended return   You may reimburse your employees by travel days, miles, or some other fixed allowance under the applicable revenue procedure. Amended return In these cases, your employee is considered to have accounted to you if your reimbursement does not exceed rates established by the Federal Government. Amended return The 2013 standard mileage rate for auto expenses was 56. Amended return 5 cents per mile. Amended return The rate for 2014 is 56 cents per mile. Amended return   The government per diem rates for meals and lodging in the continental United States are listed in Publication 1542, Per Diem Rates. Amended return Other than the amount of these expenses, your employees' business expenses must be substantiated (for example, the business purpose of the travel or the number of business miles driven). Amended return   If the per diem or allowance paid exceeds the amounts substantiated, you must report the excess amount as wages. Amended return This excess amount is subject to income tax withholding and payment of social security, Medicare, and FUTA taxes. Amended return Show the amount equal to the substantiated amount (for example, the nontaxable portion) in box 12 of Form W-2 using code “L. Amended return ” Wages not paid in money. Amended return   If in the course of your trade or business you pay your employees in a medium that is neither cash nor a readily negotiable instrument, such as a check, you are said to pay them “in kind. Amended return ” Payments in kind may be in the form of goods, lodging, food, clothing, or services. Amended return Generally, the fair market value of such payments at the time they are provided is subject to federal income tax withholding and social security, Medicare, and FUTA taxes. Amended return   However, noncash payments for household work, agricultural labor, and service not in the employer's trade or business are exempt from social security, Medicare, and FUTA taxes. Amended return Withhold income tax on these payments only if you and the employee agree to do so. Amended return Nonetheless, noncash payments for agricultural labor, such as commodity wages, are treated as cash payments subject to employment taxes if the substance of the transaction is a cash payment. Amended return Moving expenses. Amended return   Reimbursed and employer-paid qualified moving expenses (those that would otherwise be deductible by the employee) paid under an accountable plan are not includible in an employee's income unless you have knowledge the employee deducted the expenses in a prior year. Amended return Reimbursed and employer-paid nonqualified moving expenses are includible in income and are subject to employment taxes and income tax withholding. Amended return For more information on moving expenses, see Publication 521, Moving Expenses. Amended return Meals and lodging. Amended return   The value of meals is not taxable income and is not subject to income tax withholding and social security, Medicare, and FUTA taxes if the meals are furnished for the employer's convenience and on the employer's premises. Amended return The value of lodging is not subject to income tax withholding and social security, Medicare, and FUTA taxes if the lodging is furnished for the employer's convenience, on the employer's premises, and as a condition of employment. Amended return    “For the convenience of the employer” means you have a substantial business reason for providing the meals and lodging other than to provide additional compensation to the employee. Amended return For example, meals you provide at the place of work so that an employee is available for emergencies during his or her lunch period are generally considered to be for your convenience. Amended return   However, whether meals or lodging are provided for the convenience of the employer depends on all of the facts and circumstances. Amended return A written statement that the meals or lodging are for your convenience is not sufficient. Amended return 50% test. Amended return   If over 50% of the employees who are provided meals on an employer's business premises receive these meals for the convenience of the employer, all meals provided on the premises are treated as furnished for the convenience of the employer. Amended return If this 50% test is met, the value of the meals is excludable from income for all employees and is not subject to federal income tax withholding or employment taxes. Amended return For more information, see Publication 15-B. Amended return Health insurance plans. Amended return   If you pay the cost of an accident or health insurance plan for your employees, including an employee's spouse and dependents, your payments are not wages and are not subject to social security, Medicare, and FUTA taxes, or federal income tax withholding. Amended return Generally, this exclusion also applies to qualified long-term care insurance contracts. Amended return However, for income tax withholding, the value of health insurance benefits must be included in the wages of S corporation employees who own more than 2% of the S corporation (2% shareholders). Amended return For social security, Medicare, and FUTA taxes, the health insurance benefits are excluded from the wages only for employees and their dependents or for a class or classes of employees and their dependents. Amended return See Announcement 92-16 for more information. Amended return You can find Announcement 92-16 on page 53 of Internal Revenue Bulletin 1992-5. Amended return Health Savings Accounts and medical savings accounts. Amended return   Your contributions to an employee's Health Savings Account (HSA) or Archer medical savings account (MSA) are not subject to social security, Medicare, or FUTA taxes, or federal income tax withholding if it is reasonable to believe at the time of payment of the contributions they will be excludable from the income of the employee. Amended return To the extent it is not reasonable to believe they will be excludable, your contributions are subject to these taxes. Amended return Employee contributions to their HSAs or MSAs through a payroll deduction plan must be included in wages and are subject to social security, Medicare, and FUTA taxes and income tax withholding. Amended return However, HSA contributions made under a salary reduction arrangement in a section 125 cafeteria plan are not wages and are not subject to employment taxes or withholding. Amended return For more information, see the Instructions for Form 8889, Health Savings Accounts (HSAs). Amended return Medical care reimbursements. Amended return   Generally, medical care reimbursements paid for an employee under an employer's self-insured medical reimbursement plan are not wages and are not subject to social security, Medicare, and FUTA taxes, or income tax withholding. Amended return See Publication 15-B for an exception for highly compensated employees. Amended return Differential wage payments. Amended return   Differential wage payments are any payments made by an employer to an individual for a period during which the individual is performing service in the uniformed services while on active duty for a period of more than 30 days and represent all or a portion of the wages the individual would have received from the employer if the individual were performing services for the employer. Amended return   Differential wage payments are wages for income tax withholding, but are not subject to social security, Medicare, or FUTA taxes. Amended return Employers should report differential wage payments in box 1 of Form W-2. Amended return For more information about the tax treatment of differential wage payments, visit IRS. Amended return gov and enter “employees in a combat zone” in the search box. Amended return Fringe benefits. Amended return   You generally must include fringe benefits in an employee's gross income (but see Nontaxable fringe benefits next). Amended return The benefits are subject to income tax withholding and employment taxes. Amended return Fringe benefits include cars you provide, flights on aircraft you provide, free or discounted commercial flights, vacations, discounts on property or services, memberships in country clubs or other social clubs, and tickets to entertainment or sporting events. Amended return In general, the amount you must include is the amount by which the fair market value of the benefits is more than the sum of what the employee paid for it plus any amount the law excludes. Amended return There are other special rules you and your employees may use to value certain fringe benefits. Amended return See Publication 15-B for more information. Amended return Nontaxable fringe benefits. Amended return   Some fringe benefits are not taxable (or are minimally taxable) if certain conditions are met. Amended return See Publication 15-B for details. Amended return The following are some examples of nontaxable fringe benefits. Amended return Services provided to your employees at no additional cost to you. Amended return Qualified employee discounts. Amended return Working condition fringes that are property or services the employee could deduct as a business expense if he or she had paid for it. Amended return Examples include a company car for business use and subscriptions to business magazines. Amended return Certain minimal value fringes (including an occasional cab ride when an employee must work overtime and meals you provide at eating places you run for your employees if the meals are not furnished at below cost). Amended return Qualified transportation fringes subject to specified conditions and dollar limitations (including transportation in a commuter highway vehicle, any transit pass, and qualified parking). Amended return Qualified moving expense reimbursement. Amended return See Moving expenses , earlier in this section, for details. Amended return The use of on-premises athletic facilities, if substantially all of the use is by employees, their spouses, and their dependent children. Amended return Qualified tuition reduction an educational organization provides to its employees for education. Amended return For more information, see Publication 970, Tax Benefits for Education. Amended return Employer-provided cell phones provided primarily for a noncompensatory business reason. Amended return   However, do not exclude the following fringe benefits from the income of highly compensated employees unless the benefit is available to other employees on a nondiscriminatory basis. Amended return No-additional-cost services. Amended return Qualified employee discounts. Amended return Meals provided at an employer operated eating facility. Amended return Reduced tuition for education. Amended return  For more information, including the definition of a highly compensated employee, see Publication 15-B. Amended return When fringe benefits are treated as paid. Amended return   You may choose to treat certain noncash fringe benefits as paid by the pay period, by the quarter, or on any other basis you choose as long as you treat the benefits as paid at least once a year. Amended return You do not have to make a formal choice of payment dates or notify the IRS of the dates you choose. Amended return You do not have to make this choice for all employees. Amended return You may change methods as often as you like, as long as you treat all benefits provided in a calendar year as paid by December 31 of the calendar year. Amended return See Publication 15-B for more information, including a discussion of the special accounting rule for fringe benefits provided during November and December. Amended return Valuation of fringe benefits. Amended return   Generally, you must determine the value of fringe benefits no later than January 31 of the next year. Amended return Before January 31, you may reasonably estimate the value of the fringe benefits for purposes of withholding and depositing on time. Amended return Withholding on fringe benefits. Amended return   You may add the value of fringe benefits to regular wages for a payroll period and figure withholding taxes on the total, or you may withhold federal income tax on the value of the fringe benefits at the optional flat 25% supplemental wage rate. Amended return However, see Withholding on supplemental wages when an employee receives more than $1 million of supplemental wages during the calendar year in section 7. Amended return   You may choose not to withhold income tax on the value of an employee's personal use of a vehicle you provide. Amended return You must, however, withhold social security and Medicare taxes on the use of the vehicle. Amended return See Publication 15-B for more information on this election. Amended return Depositing taxes on fringe benefits. Amended return   Once you choose when fringe benefits are paid, you must deposit taxes in the same deposit period you treat the fringe benefits as paid. Amended return To avoid a penalty, deposit the taxes following the general deposit rules for that deposit period. Amended return   If you determine by January 31 you overestimated the value of a fringe benefit at the time you withheld and deposited for it, you may claim a refund for the overpayment or have it applied to your next employment tax return. Amended return See Valuation of fringe benefits , earlier. Amended return If you underestimated the value and deposited too little, you may be subject to a failure-to-deposit penalty. Amended return See section 11 for information on deposit penalties. Amended return   If you deposited the required amount of taxes but withheld a lesser amount from the employee, you can recover from the employee the social security, Medicare, or income taxes you deposited on his or her behalf, and included in the employee's Form W-2. Amended return However, you must recover the income taxes before April 1 of the following year. Amended return Sick pay. Amended return   In general, sick pay is any amount you pay under a plan to an employee who is unable to work because of sickness or injury. Amended return These amounts are sometimes paid by a third party, such as an insurance company or an employees' trust. Amended return In either case, these payments are subject to social security, Medicare, and FUTA taxes. Amended return Sick pay becomes exempt from these taxes after the end of 6 calendar months after the calendar month the employee last worked for the employer. Amended return The payments are always subject to federal income tax. Amended return See Publication 15-A for more information. Amended return 6. Amended return Tips Tips your employee receives from customers are generally subject to withholding. Amended return Your employee must report cash tips to you by the 10th of the month after the month the tips are received. Amended return The report should include tips you paid over to the employee for charge customers, tips the employee received directly from customers, and tips received from other employees under any tip-sharing arrangement. Amended return Both directly and indirectly tipped employees must report tips to you. Amended return No report is required for months when tips are less than $20. Amended return Your employee reports the tips on Form 4070, Employee's Report of Tips to Employer, or on a similar statement. Amended return The statement must be signed by the employee and must include: The employee's name, address, and SSN, Your name and address, The month or period the report covers, and The total of tips received during the month or period. Amended return Both Forms 4070 and 4070-A, Employee's Daily Record of Tips, are included in Publication 1244, Employee's Daily Record of Tips and Report to Employer. Amended return You are permitted to establish a system for electronic tip reporting by employees. Amended return See Regulations section 31. Amended return 6053-1(d). Amended return Collecting taxes on tips. Amended return   You must collect income tax, employee social security tax, and employee Medicare tax on the employee's tips. Amended return The withholding rules for withholding an employee's share of Medicare tax on tips also apply to withholding the Additional Medicare Tax once wages and tips exceed $200,000 in the calendar year. Amended return If an employee reports to you in writing $20 or more of tips in a month, the tips are also subject to FUTA tax. Amended return   You can collect these taxes from the employee's wages or from other funds he or she makes available. Amended return See Tips treated as supplemental wages in section 7 for more information. Amended return Stop collecting the employee social security tax when his or her wages and tips for tax year 2014 reach $117,000; collect the income and employee Medicare taxes for the whole year on all wages and tips. Amended return You are responsible for the employer social security tax on wages and tips until the wages (including tips) reach the limit. Amended return You are responsible for the employer Medicare tax for the whole year on all wages and tips. Amended return File Form 941 or Form 944 to report withholding and employment taxes on tips. Amended return Ordering rule. Amended return   If, by the 10th of the month after the month for which you received an employee's report on tips, you do not have enough employee funds available to deduct the employee tax, you no longer have to collect it. Amended return If there are not enough funds available, withhold taxes in the following order. Amended return Withhold on regular wages and other compensation. Amended return Withhold social security and Medicare taxes on tips. Amended return Withhold income tax on tips. Amended return Reporting tips. Amended return   Report tips and any collected and uncollected social security and Medicare taxes on Form W-2 and on Form 941, lines 5b, 5c, and 5d (Form 944, lines 4b, 4c, and 4d). Amended return Report an adjustment on Form 941, line 9 (Form 944, line 6), for the uncollected social security and Medicare taxes. Amended return Enter the amount of uncollected social security tax and Medicare tax on Form W-2, box 12, with codes “A” and “B. Amended return ” Do not include any uncollected Additional Medicare Tax in box 12 of Form W-2. Amended return See section 13 and the General Instructions for Forms W-2 and W-3. Amended return   Revenue Ruling 2012-18 provides guidance for employers regarding social security and Medicare taxes imposed on tips, including information on the reporting of the employer share of social security and Medicare taxes under section 3121(q), the difference between tips and service charges, and the section 45B credit. Amended return See Revenue Ruling 2012-18, 2012-26 I. Amended return R. Amended return B. Amended return 1032, available at www. Amended return irs. Amended return gov/irb/2012-26_IRB/ar07. Amended return html. Amended return Allocated tips. Amended return   If you operate a large food or beverage establishment, you must report allocated tips under certain circumstances. Amended return However, do not withhold income, social security, or Medicare taxes on allocated tips. Amended return   A large food or beverage establishment is one that provides food or beverages for consumption on the premises, where tipping is customary, and where there were normally more than 10 employees on a typical business day during the preceding year. Amended return   The tips may be allocated by one of three methods—hours worked, gross receipts, or good faith agreement. Amended return For information about these allocation methods, including the requirement to file Forms 8027 electronically if 250 or more forms are filed, see the Instructions for Form 8027. Amended return For information on filing Form 8027 electronically with the IRS, see Publication 1239. Amended return Tip Rate Determination and Education Program. Amended return   Employers may participate in the Tip Rate Determination and Education Program. Amended return The program primarily consists of two voluntary agreements developed to improve tip income reporting by helping taxpayers to understand and meet their tip reporting responsibilities. Amended return The two agreements are the Tip Rate Determination Agreement (TRDA) and the Tip Reporting Alternative Commitment (TRAC). Amended return A tip agreement, the Gaming Industry Tip Compliance Agreement (GITCA), is available for the gaming (casino) industry. Amended return To get more information about TRDA and TRAC agreements, see Publication 3144, Tips on Tips. Amended return Additionally, visit IRS. Amended return gov and enter “MSU tips” in the search box to get more information about GITCA, TRDA, or TRAC agreements. Amended return 7. Amended return Supplemental Wages Supplemental wages are wage payments to an employee that are not regular wages. Amended return They include, but are not limited to, bonuses, commissions, overtime pay, payments for accumulated sick leave, severance pay, awards, prizes, back pay, retroactive pay increases, and payments for nondeductible moving expenses. Amended return Other payments subject to the supplemental wage rules include taxable fringe benefits and expense allowances paid under a nonaccountable plan. Amended return How you withhold on supplemental wages depends on whether the supplemental payment is identified as a separate payment from regular wages. Amended return See Regulations section 31. Amended return 3402(g)-1 for additional guidance for wages paid after January 1, 2007. Amended return Also see Revenue Ruling 2008-29, 2008-24 I. Amended return R. Amended return B. Amended return 1149, available at www. Amended return irs. Amended return gov/irb/2008-24_IRB/ar08. Amended return html. Amended return Withholding on supplemental wages when an employee receives more than $1 million of supplemental wages from you during the calendar year. Amended return   Special rules apply to the extent supplemental wages paid to any one employee during the calendar year exceed $1 million. Amended return If a supplemental wage payment, together with other supplemental wage payments made to the employee during the calendar year, exceeds $1 million, the excess is subject to withholding at 39. Amended return 6% (or the highest rate of income tax for the year). Amended return Withhold using the 39. Amended return 6% rate without regard to the employee's Form W-4. Amended return In determining supplemental wages paid to the employee during the year, include payments from all businesses under common control. Amended return For more information, see Treasury Decision 9276, 2006-37 I. Amended return R. Amended return B. Amended return 423, available at www. Amended return irs. Amended return gov/irb/2006-37_IRB/ar09. Amended return html. Amended return Withholding on supplemental wage payments to an employee who does not receive $1 million of supplemental wages during the calendar year. Amended return   If the supplemental wages paid to the employee during the calendar year are less than or equal to $1 million, the following rules apply in determining the amount of income tax to be withheld. Amended return Supplemental wages combined with regular wages. Amended return   If you pay supplemental wages with regular wages but do not specify the amount of each, withhold federal income tax as if the total were a single payment for a regular payroll period. Amended return Supplemental wages identified separately from regular wages. Amended return   If you pay supplemental wages separately (or combine them in a single payment and specify the amount of each), the federal income tax withholding method depends partly on whether you withhold income tax from your employee's regular wages. Amended return If you withheld income tax from an employee's regular wages in the current or immediately preceding calendar year, you can use one of the following methods for the supplemental wages. Amended return Withhold a flat 25% (no other percentage allowed). Amended return If the supplemental wages are paid concurrently with regular wages, add the supplemental wages to the concurrently paid regular wages. Amended return If there are no concurrently paid regular wages, add the supplemental wages to alternatively, either the regular wages paid or to be paid for the current payroll period or the regular wages paid for the preceding payroll period. Amended return Figure the income tax withholding as if the total of the regular wages and supplemental wages is a single payment. Amended return Subtract the tax withheld from the regular wages. Amended return Withhold the remaining tax from the supplemental wages. Amended return If there were other payments of supplemental wages paid during the payroll period made before the current payment of supplemental wages, aggregate all the payments of supplemental wages paid during the payroll period with the regular wages paid during the payroll period, calculate the tax on the total, subtract the tax already withheld from the regular wages and the previous supplemental wage payments, and withhold the remaining tax. Amended return If you did not withhold income tax from the employee's regular wages in the current or immediately preceding calendar year, use method 1-b. Amended return This would occur, for example, when the value of the employee's withholding allowances claimed on Form W-4 is more than the wages. Amended return Regardless of the method you use to withhold income tax on supplemental wages, they are subject to social security, Medicare, and FUTA taxes. Amended return Example 1. Amended return You pay John Peters a base salary on the 1st of each month. Amended return He is single and claims one withholding allowance. Amended return In January he is paid $1,000. Amended return Using the wage bracket tables, you withhold $50 from this amount. Amended return In February, he receives salary of $1,000 plus a commission of $2,000, which you combine with regular wages and do not separately identify. Amended return You figure the withholding based on the total of $3,000. Amended return The correct withholding from the tables is $338. Amended return Example 2. Amended return You pay Sharon Warren a base salary on the 1st of each month. Amended return She is single and claims one allowance. Amended return Her May 1 pay is $2,000. Amended return Using the wage bracket tables, you withhold $188. Amended return On May 14 she receives a bonus of $1,000. Amended return Electing to use supplemental wage withholding method 1-b, you: Add the bonus amount to the amount of wages from the most recent base salary pay date (May 1) ($2,000 + $1,000 = $3,000). Amended return Determine the amount of withholding on the combined $3,000 amount to be $338 using the wage bracket tables. Amended return Subtract the amount withheld from wages on the most recent base salary pay date (May 1) from the combined withholding amount ($338 – $188 = $150). Amended return Withhold $150 from the bonus payment. Amended return Example 3. Amended return The facts are the same as in Example 2, except you elect to use the flat rate method of withholding on the bonus. Amended return You withhold 25% of $1,000, or $250, from Sharon's bonus payment. Amended return Example 4. Amended return The facts are the same as in Example 2, except you elect to pay Sharon a second bonus of $2,000 on May 28. Amended return Using supplemental wage withholding method 1-b, you: Add the first and second bonus amounts to the amount of wages from the most recent base salary pay date (May 1) ($2,000 + $1,000 + $2,000 = $5,000). Amended return Determine the amount of withholding on the combined $5,000 amount to be $781 using the wage bracket tables. Amended return Subtract the amounts withheld from wages on the most recent base salary pay date (May 1) and the amounts withheld from the first bonus payment from the combined withholding amount ($781 – $188 – $150 = $443). Amended return Withhold $443 from the second bonus payment. Amended return Tips treated as supplemental wages. Amended return   Withhold income tax on tips from wages earned by the employee or from other funds the employee makes available. Amended return If an employee receives regular wages and reports tips, figure income tax withholding as if the tips were supplemental wages. Amended return If you have not withheld income tax from the regular wages, add the tips to the regular wages. Amended return Then withhold income tax on the total. Amended return If you withheld income tax from the regular wages, you can withhold on the tips by method 1-a or 1-b discussed earlier in this section under Supplemental wages identified separately from regular wages. Amended return Vacation pay. Amended return   Vacation pay is subject to withholding as if it were a regular wage payment. Amended return When vacation pay is in addition to regular wages for the vacation period, treat it as a supplemental wage payment. Amended return If the vacation pay is for a time longer than your usual payroll period, spread it over the pay periods for which you pay it. Amended return 8. Amended return Payroll Period Your payroll period is a period of service for which you usually pay wages. Amended return When you have a regular payroll period, withhold income tax for that time period even if your employee does not work the full period. Amended return No regular payroll period. Amended return   When you do not have a regular payroll period, withhold the tax as if you paid wages for a daily or miscellaneous payroll period. Amended return Figure the number of days (including Sundays and holidays) in the period covered by the wage payment. Amended return If the wages are unrelated to a specific length of time (for example, commissions paid on completion of a sale), count back the number of days from the payment period to the latest of: The last wage payment made during the same calendar year, The date employment began, if during the same calendar year, or January 1 of the same year. Amended return Employee paid for period less than 1 week. Amended return   When you pay an employee for a period of less than one week, and the employee signs a statement under penalties of perjury indicating he or she is not working for any other employer during the same week for wages subject to withholding, figure withholding based on a weekly payroll period. Amended return If the employee later begins to work for another employer for wages subject to withholding, the employee must notify you within 10 days. Amended return You then figure withholding based on the daily or miscellaneous period. Amended return 9. Amended return Withholding From Employees' Wages Income Tax Withholding Using Form W-4 to figure withholding. Amended return   To know how much federal income tax to withhold from employees' wages, you should have a Form W-4 on file for each employee. Amended return Encourage your employees to file an updated Form W-4 for 2014, especially if they owed taxes or received a large refund when filing their 2013 tax return. Amended return Advise your employees to use the IRS Withholding Calculator on the IRS website at www. Amended return irs. Amended return gov/individuals for help in determining how many withholding allowances to claim on their Forms W-4. Amended return   Ask all new employees to give you a signed Form W-4 when they start work. Amended return Make the form effective with the first wage payment. Amended return If a new employee does not give you a completed Form W-4, withhold income tax as if he or she is single, with no withholding allowances. Amended return Form in Spanish. Amended return   You can provide Formulario W-4(SP), Certificado de Exención de Retenciones del Empleado, in place of Form W-4, to your Spanish-speaking employees. Amended return For more information, see Publicación 17(SP), El Impuesto Federal sobre los Ingresos (Para Personas Físicas). Amended return The rules discussed in this section that apply to Form W-4 also apply to Formulario W-4(SP). Amended return Electronic system to receive Form W-4. Amended return   You may establish a system to electronically receive Forms W-4 from your employees. Amended return See Regulations section 31. Amended return 3402(f)(5)-1(c) for more information. Amended return Effective date of Form W-4. Amended return   A Form W-4 remains in effect until the employee gives you a new one. Amended return When you receive a new Form W-4 from an employee, do not adjust withholding for pay periods before the effective date of the new form. Amended return If an employee gives you a Form W-4 that replaces an existing Form W-4, begin withholding no later than the start of the first payroll period ending on or after the 30th day from the date when you received the replacement Form W-4. Amended return For exceptions, see Exemption from federal income tax withholding , IRS review of requested Forms W-4 , and Invalid Forms W-4 , later in this section. Amended return A Form W-4 that makes a change for the next calendar year will not take effect in the current calendar year. Amended return Successor employer. Amended return   If you are a successor employer (see Successor employer , later in this section), secure new Forms W-4 from the transferred employees unless the “Alternative Procedure” in section 5 of Revenue Procedure 2004-53 applies. Amended return See Revenue Procedure 2004-53, 2004-34 I. Amended return R. Amended return B. Amended return 320, available at www. Amended return irs. Amended return gov/irb/2004-34_IRB/ar13. Amended return html. Amended return Completing Form W-4. Amended return   The amount of any federal income tax withholding must be based on marital status and withholding allowances. Amended return Your employees may not base their withholding amounts on a fixed dollar amount or percentage. Amended return However, an employee may specify a dollar amount to be withheld in addition to the amount of withholding based on filing status and withholding allowances claimed on Form W-4. Amended return Employees may claim fewer withholding allowances than they are entitled to claim. Amended return They may wish to claim fewer allowances to ensure they have enough withholding or to offset the tax on other sources of taxable income not subject to withholding. Amended return See Publication 505, Tax Withholding and Estimated Tax, for more information about completing Form W-4. Amended return Along with Form W-4, you may wish to order Publication 505 for use by your employees. Amended return Do not accept any withholding or estimated tax payments from your employees in addition to withholding based on their Form W-4. Amended return If they require additional withholding, they should submit a new Form W-4 and, if necessary, pay estimated tax by filing Form 1040-ES, Estimated Tax for Individuals, or by using the Electronic Federal Tax Payment System (EFTPS) to make estimated tax payments. Amended return Exemption from federal income tax withholding. Amended return   Generally, an employee may claim exemption from federal income tax withholding because he or she had no income tax liability last year and expects none this year. Amended return See the Form W-4 instructions for more information. Amended return However, the wages are still subject to social security and Medicare taxes. Amended return See also Invalid Forms W-4 , later in this section. Amended return   A Form W-4 claiming exemption from withholding is effective when it is filed with the employer and only for that calendar year. Amended return To continue to be exempt from withholding in the next calendar year, an employee must give you a new Form W-4 by February 15. Amended return If the employee does not give you a new Form W-4 by February 15, begin withholding based on the last Form W-4 for the employee that did not claim an exemption from withholding or, if one was not filed, then withhold tax as if he or she is single with zero withholding allowances. Amended return If the employee provides a new Form W-4 claiming exemption from withholding on February 16 or later, you may apply it to future wages but do not refund any taxes already withheld. Amended return Withholding income taxes on the wages of nonresident alien employees. Amended return   In general, you must withhold federal income taxes on the wages of nonresident alien employees. Amended return However, see Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities, for exceptions to this general rule. Amended return Also see section 3 of Publication 51 (Circular A), Agricultural Employer's Tax Guide, for guidance on H-2A visa workers. Amended return Withholding adjustment for nonresident alien employees. Amended return   For 2014, apply the procedure discussed next to figure the amount of income tax to withhold from the wages of nonresident alien employees performing services within the United States. Amended return Nonresident alien students from India and business apprentices from India are not subject to this procedure. Amended return Instructions. Amended return   To figure how much income tax to withhold from the wages paid to a nonresident alien employee performing services in the United States, use the following steps. Amended return Step 1. Amended return   Add to the wages paid to the nonresident alien employee for the payroll period the amount shown in the chart below for the applicable payroll period. Amended return    Amount to Add to Nonresident Alien Employee's Wages for Calculating Income Tax Withholding Only   Payroll Period Add Additional     Weekly $ 43. Amended return 30     Biweekly 86. Amended return 50     Semimonthly 93. Amended return 80     Monthly 187. Amended return 50     Quarterly 562. Amended return 50     Semiannually 1,125. Amended return 00     Annually 2,250. Amended return 00     Daily or Miscellaneous (each day of the payroll period) 8. Amended return 70   Step 2. Amended return   Use the amount figured in Step 1 and the number of withholding allowances claimed (generally limited to one allowance) to figure income tax withholding. Amended return Determine the value of withholding allowances by multiplying the number of withholding allowances claimed by the appropriate amount from Table 5. Amended return Percentage Method—2014 Amount for One Withholding Allowance shown on page 41. Amended return If you are using the Percentage Method Tables for Income Tax Withholding, provided on pages 43–44, reduce the amount figured in Step 1 by the value of withholding allowances and use that reduced amount to figure the income tax withholding. Amended return If you are using the Wage Bracket Method for Income Tax Withholding, provided on pages 45–64, use the amount figured in Step 1 and the number of withholding allowances to figure income tax withholding. Amended return The amounts from the chart above are added to wages solely for calculating income tax withholding on the wages of the nonresident alien employee. Amended return The amounts from the chart should not be included in any box on the employee's Form W-2 and do not increase the income tax liability of the employee. Amended return Also, the amounts from the chart do not increase the social security tax or Medicare tax liability of the employer or the employee, or the FUTA tax liability of the employer. Amended return This procedure only applies to nonresident alien employees who have wages subject to income tax withholding. Amended return Example. Amended return An employer using the percentage method of withholding pays wages of $500 for a biweekly payroll period to a married nonresident alien employee. Amended return The nonresident alien has properly completed Form W-4, entering marital status as “single” with one withholding allowance and indicating status as a nonresident alien on Form W-4, line 6 (see Nonresident alien employee's Form W-4 , later in this section). Amended return The employer determines the wages to be used in the withholding tables by adding to the $500 amount of wages paid the amount of $86. Amended return 50 from the chart under Step 1 ($586. Amended return 50 total). Amended return The employer then applies the applicable tables to determine the income tax withholding for nonresident aliens (see Step 2 ). Amended return Reminder: If you use the Percentage Method Tables for Income Tax Withholding, reduce the amount figured in Step 1 by the value of withholding allowances and use that reduced amount to figure income tax withholding. Amended return The $86. Amended return 50 added to wages for calculating income tax withholding is not reported on Form W-2, and does not increase the income tax liability of the employee. Amended return Also, the $86. Amended return 50 added to wages does not affect the social security tax or Medicare tax liability of the employer or the employee, or the FUTA tax liability of the employer. Amended return Supplemental wage payment. Amended return   This procedure for determining the amount of income tax withholding does not apply to a supplemental wage payment (see section 7) if the 39. Amended return 6% mandatory flat rate withholding applies or if the 25% optional flat rate withholding is being used to calculate income tax withholding on the supplemental wage payment. Amended return Nonresident alien employee's Form W-4. Amended return   When completing Forms W-4, nonresident aliens are required to: Not claim exemption from income tax withholding, Request withholding as if they are single, regardless of their actual marital status, Claim only one allowance (if the nonresident alien is a resident of Canada, Mexico, or South Korea, or a student or business apprentice from India, he or she may claim more than one allowance), and Write “Nonresident Alien” or “NRA” above the dotted line on line 6 of Form W-4. Amended return   If you maintain an electronic Form W-4 system, you should provide a field for nonresident aliens to enter nonresident alien status in lieu of writing “Nonresident Alien” or “NRA” above the dotted line on line 6. Amended return A nonresident alien employee may request additional withholding at his or her option for other purposes, although such additions should not be necessary for withholding to cover federal income tax liability related to employment. Amended return Form 8233. Amended return   If a nonresident alien employee claims a tax treaty exemption from withholding, the employee must submit Form 8233, Exemption From Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Nonresident Alien Individual, with respect to the income exempt under the treaty, instead of Form W-4. Amended return See Publication 515 for details. Amended return IRS review of requested Forms W-4. Amended return   When requested by the IRS, you must make original Forms W-4 available for inspection by an IRS employee. Amended return You may also be directed to send certain Forms W-4 to the IRS. Amended return You may receive a notice from the IRS requiring you to submit a copy of Form W-4 for one or more of your named employees. Amended return Send the requested copy or copies of Form W-4 to the IRS at the address provided and in the manner directed by the notice. Amended return The IRS may also require you to submit copies of Form W-4 to the IRS as directed by Treasury Decision 9337, 2007-35 I. Amended return R. Amended return B. Amended return 455, which is available at www. Amended return irs. Amended return gov/irb/2007-35_IRB/ar10. Amended return html. Amended return When we refer to Form W-4, the same rules apply to Formulario W-4(SP), its Spanish translation. Amended return After submitting a copy of a requested Form W-4 to the IRS, continue to withhold federal income tax based on that Form W-4 if it is valid (see Invalid Forms W-4 , later in this section). Amended return However, if the IRS later notifies you in writing the employee is not entitled to claim exemption from withholding or a claimed number of withholding allowances, withhold federal income tax based on the effective date, marital status, and maximum number of withholding allowances specified in the IRS notice (commonly referred to as a "lock-in letter