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Irs Gov Freefilefillableforms

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Irs Gov Freefilefillableforms

Irs gov freefilefillableforms 16. Irs gov freefilefillableforms   How To Get Tax Help Table of Contents Go online, use a smart phone, call or walk in to an office near you. Irs gov freefilefillableforms Whether it's help with a tax issue, preparing your tax return or picking up a free publication or form, get the help you need the way you want it. Irs gov freefilefillableforms Free help with your tax return. Irs gov freefilefillableforms   Free help in preparing your return is available nationwide from IRS-certified volunteers. Irs gov freefilefillableforms The Volunteer Income Tax Assistance (VITA) program is designed to help low-to-moderate income, elderly, persons with disabilities, and limited English proficient taxpayers. Irs gov freefilefillableforms The Tax Counseling for the Elderly (TCE) program is designed to assist taxpayers age 60 and older with their tax returns. Irs gov freefilefillableforms Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. Irs gov freefilefillableforms Some VITA and TCE sites provide taxpayers the opportunity to prepare their return with the assistance of an IRS-certified volunteer. Irs gov freefilefillableforms To find the nearest VITA or TCE site, visit IRS. Irs gov freefilefillableforms gov or call 1-800-906-9887. Irs gov freefilefillableforms   As part of the TCE program, AARP offers the Tax-Aide counseling program. Irs gov freefilefillableforms To find the nearest AARP Tax-Aide site, visit AARP's website at www. Irs gov freefilefillableforms aarp. Irs gov freefilefillableforms org/money/taxaide or call 1-888-227-7669. Irs gov freefilefillableforms   For more information on these programs, go to IRS. Irs gov freefilefillableforms gov and enter “VITA” in the search box. Irs gov freefilefillableforms Internet. Irs gov freefilefillableforms IRS. Irs gov freefilefillableforms gov and IRS2Go are ready when you are — every day, every night, 24 hours a day, 7 days a week. Irs gov freefilefillableforms Apply for an Employer Identification Number (EIN). Irs gov freefilefillableforms Go to IRS. Irs gov freefilefillableforms gov and enter Apply for an EIN in the search box. Irs gov freefilefillableforms Request an Electronic Filing PIN by going to IRS. Irs gov freefilefillableforms gov and entering Electronic Filing PIN in the search box. Irs gov freefilefillableforms Check the status of your 2013 refund with Where's My Refund? Go to IRS. Irs gov freefilefillableforms gov or the IRS2Go app, and click on Where's My Refund? You'll get a personalized refund date as soon as the IRS processes your tax return and approves your refund. Irs gov freefilefillableforms If you e-file, your refund status is usually available within 24 hours after the IRS receives your tax return or 4 weeks after you've mailed a paper return. Irs gov freefilefillableforms Checking the status of your amended return. Irs gov freefilefillableforms Go to IRS. Irs gov freefilefillableforms gov and enter Where's My Amended Return in the search box. Irs gov freefilefillableforms Download forms, instructions, and publications, including some accessible versions. Irs gov freefilefillableforms Order free transcripts of your tax returns or tax account using the Order a Transcript tool on IRS. Irs gov freefilefillableforms gov or IRS2Go. Irs gov freefilefillableforms Tax return and tax account transcripts are generally available for the current year and past three years. Irs gov freefilefillableforms Figure your income tax withholding with the IRS Withholding Calculator on IRS. Irs gov freefilefillableforms gov. Irs gov freefilefillableforms Use it if you've had too much or too little withheld, your personal situation has changed, you're starting a new job or you just want to see if you're having the right amount withheld. Irs gov freefilefillableforms Determine if you might be subject to the Alternative Minimum Tax by using the Alternative Minimum Tax Assistant on IRS. Irs gov freefilefillableforms gov. Irs gov freefilefillableforms Locate the nearest Taxpayer Assistance Center using the Office Locator tool on IRS. Irs gov freefilefillableforms gov or IRS2Go. Irs gov freefilefillableforms Stop by most business days for face-to-face tax help, no appointment necessary — just walk in. Irs gov freefilefillableforms An employee can explain IRS letters, request adjustments to your tax account or help you set up a payment plan. Irs gov freefilefillableforms Before you visit, check the Office Locator for the address, phone number, hours of operation and the services provided. Irs gov freefilefillableforms If you have an ongoing tax account problem or a special need, such as a disability, you can request an appointment. Irs gov freefilefillableforms Call the local number listed in the Office Locator, or look in the phone book under United States Government, Internal Revenue Service. Irs gov freefilefillableforms Locate the nearest volunteer help site with the VITA Locator Tool on IRS. Irs gov freefilefillableforms gov. Irs gov freefilefillableforms Low-to-moderate income, elderly, persons with disabilities, and limited English proficient taxpayers can get free help with their tax return from the nationwide Volunteer Income Tax Assistance (VITA) program. Irs gov freefilefillableforms The Tax Counseling for the Elderly (TCE) program helps taxpayers 60 and older with their tax returns. Irs gov freefilefillableforms Most VITA and TCE sites offer free electronic filing and some provide IRS-certified volunteers who can help prepare your tax return. Irs gov freefilefillableforms AARP offers the Tax-Aide counseling program as part of the TCE program. Irs gov freefilefillableforms Visit AARP's website to find the nearest Tax-Aide location. Irs gov freefilefillableforms Research your tax questions. Irs gov freefilefillableforms Search publications and instructions by topic or keyword. Irs gov freefilefillableforms Read the Internal Revenue Code, regulations, or other official guidance. Irs gov freefilefillableforms Read Internal Revenue Bulletins. Irs gov freefilefillableforms Sign up to receive local and national tax news by email. Irs gov freefilefillableforms Phone. Irs gov freefilefillableforms You can call the IRS, or you can carry it in your pocket with the IRS2Go app on your smart phone or tablet. Irs gov freefilefillableforms Download the free IRS2Go mobile app from the iTunes app store or from Google Play. Irs gov freefilefillableforms Use it to watch the IRS YouTube channel, get IRS news as soon as it's released to the public, order transcripts of your tax returns or tax account, check your refund status, subscribe to filing season updates or daily tax tips, and follow the IRS Twitter news feed, @IRSnews, to get the latest federal tax news, including information about tax law changes and important IRS programs. Irs gov freefilefillableforms Call to locate the nearest volunteer help site, 1-800-906-9887. Irs gov freefilefillableforms Low-to-moderate income, elderly, persons with disabilities, and limited English proficient taxpayers can get free help with their tax return from the nationwide Volunteer Income Tax Assistance (VITA) program. Irs gov freefilefillableforms The Tax Counseling for the Elderly (TCE) program helps taxpayers 60 and older with their tax returns. Irs gov freefilefillableforms Most VITA and TCE sites offer free electronic filing. Irs gov freefilefillableforms Some VITA and TCE sites provide IRS-certified volunteers who can help prepare your tax return. Irs gov freefilefillableforms Through the TCE program, AARP offers the Tax-Aide counseling program; call 1-888-227-7669 to find the nearest Tax-Aide location. Irs gov freefilefillableforms Call to check the status of your 2013 refund, 1-800-829-1954 or 1-800-829-4477. Irs gov freefilefillableforms The automated Where's My Refund? information is available 24 hours a day, 7 days a week. Irs gov freefilefillableforms If you e-file, your refund status is usually available within 24 hours after the IRS receives your tax return or 4 weeks after you've mailed a paper return. Irs gov freefilefillableforms Before you call, have your 2013 tax return handy so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. Irs gov freefilefillableforms Where's My Refund? can give you a personalized refund date as soon as the IRS processes your tax return and approves your refund. Irs gov freefilefillableforms Where's My Refund? includes information for the most recent return filed in the current year and does not include information about amended returns. Irs gov freefilefillableforms Call the Amended Return Hotline, 1-866-464-2050, to check the status of your amended return. Irs gov freefilefillableforms Call to order forms, instructions and publications, 1-800-TAX-FORM (1-800-829-3676) to order current-year forms, instructions and publications, and prior-year forms and instructions (limited to 5 years). Irs gov freefilefillableforms You should receive your order within 10 business days. Irs gov freefilefillableforms Call to order transcripts of your tax returns or tax account, 1-800-908-9946. Irs gov freefilefillableforms Follow the prompts to provide your Social Security Number or Individual Taxpayer Identification Number, date of birth, street address and ZIP code. Irs gov freefilefillableforms Call for TeleTax topics, 1-800-829-4477, to listen to pre-recorded messages covering various tax topics. Irs gov freefilefillableforms Call to ask tax questions, 1-800-829-1040. Irs gov freefilefillableforms Call using TTY/TDD equipment, 1-800-829-4059 to ask tax questions or order forms and publications. Irs gov freefilefillableforms The TTY/TDD telephone number is for people who are deaf, hard of hearing, or have a speech disability. Irs gov freefilefillableforms These individuals can also contact the IRS through relay services such as the Federal Relay Service available at www. Irs gov freefilefillableforms gsa. Irs gov freefilefillableforms gov/fedrelay. Irs gov freefilefillableforms Walk-in. Irs gov freefilefillableforms You can find a selection of forms, publications and services — in-person, face-to-face. Irs gov freefilefillableforms Products. Irs gov freefilefillableforms You can walk in to some post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. Irs gov freefilefillableforms Some IRS offices, libraries, and city and county government offices have a collection of products available to photocopy from reproducible proofs. Irs gov freefilefillableforms Services. Irs gov freefilefillableforms You can walk in to your local TAC most business days for personal, face-to-face tax help. Irs gov freefilefillableforms An employee can explain IRS letters, request adjustments to your tax account, or help you set up a payment plan. Irs gov freefilefillableforms If you need to resolve a tax problem, have questions about how the tax law applies to your individual tax return, or you are more comfortable talking with someone in person, visit your local TAC where you can talk with an IRS representative face-to-face. Irs gov freefilefillableforms No appointment is necessary—just walk in. Irs gov freefilefillableforms Before visiting, check www. Irs gov freefilefillableforms irs. Irs gov freefilefillableforms gov/localcontacts for hours of operation and services provided. Irs gov freefilefillableforms Mail. Irs gov freefilefillableforms You can send your order for forms, instructions, and publications to the address below. Irs gov freefilefillableforms You should receive a response within 10 business days after your request is received. Irs gov freefilefillableforms  Internal Revenue Service 1201 N. Irs gov freefilefillableforms Mitsubishi Motorway Bloomington, IL 61705-6613 The Taxpayer Advocate Service Is Here to Help You. Irs gov freefilefillableforms   The Taxpayer Advocate Service (TAS) is your voice at the IRS. Irs gov freefilefillableforms Our job is to ensure that every taxpayer is treated fairly and that you know and understand your rights. Irs gov freefilefillableforms What can TAS do for you?   We can offer you free help with IRS problems that you can't resolve on your own. Irs gov freefilefillableforms We know this process can be confusing, but the worst thing you can do is nothing at all! TAS can help if you can't resolve your tax problem and: Your problem is causing financial difficulties for you, your family, or your business. Irs gov freefilefillableforms You face (or your business is facing) an immediate threat of adverse action. Irs gov freefilefillableforms You've tried repeatedly to contact the IRS but no one has responded, or the IRS hasn't responded by the date promised. Irs gov freefilefillableforms   If you qualify for our help, you'll be assigned to one advocate who'll be with you at every turn and will do everything possible to resolve your problem. Irs gov freefilefillableforms Here's why we can help: TAS is an independent organization within the IRS. Irs gov freefilefillableforms Our advocates know how to work with the IRS. Irs gov freefilefillableforms Our services are free and tailored to meet your needs. Irs gov freefilefillableforms We have offices in every state, the District of Columbia, and Puerto Rico. Irs gov freefilefillableforms How can you reach us?   If you think TAS can help you, call your local advocate, whose number is in your local directory and at www. Irs gov freefilefillableforms irs. Irs gov freefilefillableforms gov/advocate, or call us toll-free at 1-877-777-4778. Irs gov freefilefillableforms How else does TAS help taxpayers?   TAS also works to resolve large-scale, systemic problems that affect many taxpayers. Irs gov freefilefillableforms If you know of one of these broad issues, please report it to us through our Systemic Advocacy Management System at www. Irs gov freefilefillableforms irs. Irs gov freefilefillableforms gov/sams. Irs gov freefilefillableforms Low Income Taxpayer Clinics. Irs gov freefilefillableforms   Low Income Taxpayer Clinics (LITCs) serve individuals whose income is below a certain level and need to resolve tax problems such as audits, appeals, and tax collection disputes. Irs gov freefilefillableforms Some clinics can provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language. Irs gov freefilefillableforms Visit www. Irs gov freefilefillableforms TaxpayerAdvocate. Irs gov freefilefillableforms irs. Irs gov freefilefillableforms gov or see IRS Publication 4134, Low Income Taxpayer Clinic List. Irs gov freefilefillableforms Prev  Up  Next   Home   More Online Publications
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The Irs Gov Freefilefillableforms

Irs gov freefilefillableforms Publication 15 - Main Content Table of Contents 1. Irs gov freefilefillableforms Employer Identification Number (EIN) 2. Irs gov freefilefillableforms Who Are Employees?Relief provisions. Irs gov freefilefillableforms Business Owned and Operated by Spouses 3. Irs gov freefilefillableforms Family Employees 4. Irs gov freefilefillableforms Employee's Social Security Number (SSN)Registering for SSNVS. Irs gov freefilefillableforms 5. Irs gov freefilefillableforms Wages and Other CompensationAccountable plan. Irs gov freefilefillableforms Nonaccountable plan. Irs gov freefilefillableforms Per diem or other fixed allowance. Irs gov freefilefillableforms 50% test. Irs gov freefilefillableforms Health Savings Accounts and medical savings accounts. Irs gov freefilefillableforms Nontaxable fringe benefits. Irs gov freefilefillableforms When fringe benefits are treated as paid. Irs gov freefilefillableforms Valuation of fringe benefits. Irs gov freefilefillableforms Withholding on fringe benefits. Irs gov freefilefillableforms Depositing taxes on fringe benefits. Irs gov freefilefillableforms 6. Irs gov freefilefillableforms TipsOrdering rule. Irs gov freefilefillableforms 7. Irs gov freefilefillableforms Supplemental Wages 8. Irs gov freefilefillableforms Payroll Period 9. Irs gov freefilefillableforms Withholding From Employees' WagesIncome Tax Withholding Social Security and Medicare Taxes Part-Time Workers 10. Irs gov freefilefillableforms Required Notice to Employees About the Earned Income Credit (EIC) 11. Irs gov freefilefillableforms Depositing TaxesWhen To Deposit How To Deposit Deposit Penalties 12. Irs gov freefilefillableforms Filing Form 941 or Form 944 13. Irs gov freefilefillableforms Reporting Adjustments to Form 941 or Form 944Current Period Adjustments Prior Period Adjustments Wage Repayments 14. Irs gov freefilefillableforms Federal Unemployment (FUTA) TaxSuccessor employer. Irs gov freefilefillableforms Household employees. Irs gov freefilefillableforms When to deposit. Irs gov freefilefillableforms Household employees. Irs gov freefilefillableforms Electronic filing by reporting agents. Irs gov freefilefillableforms 16. Irs gov freefilefillableforms How To Use the Income Tax Withholding TablesWage Bracket Method Percentage Method Alternative Methods of Income Tax Withholding How To Get Tax Help 1. Irs gov freefilefillableforms Employer Identification Number (EIN) If you are required to report employment taxes or give tax statements to employees or annuitants, you need an EIN. Irs gov freefilefillableforms The EIN is a nine-digit number the IRS issues. Irs gov freefilefillableforms The digits are arranged as follows: 00-0000000. Irs gov freefilefillableforms It is used to identify the tax accounts of employers and certain others who have no employees. Irs gov freefilefillableforms Use your EIN on all of the items you send to the IRS and SSA. Irs gov freefilefillableforms For more information, see Publication 1635, Employer Identification Number: Understanding Your EIN. Irs gov freefilefillableforms If you do not have an EIN, you may apply for one online. Irs gov freefilefillableforms Go to the IRS. Irs gov freefilefillableforms gov and click on the Apply for an EIN Online link under Tools. Irs gov freefilefillableforms 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. Irs gov freefilefillableforms Do not use an SSN in place of an EIN. Irs gov freefilefillableforms You should have only one EIN. Irs gov freefilefillableforms 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). Irs gov freefilefillableforms Give the numbers you have, the name and address to which each was assigned, and the address of your main place of business. Irs gov freefilefillableforms The IRS will tell you which number to use. Irs gov freefilefillableforms If you took over another employer's business (see Successor employer in section 9), do not use that employer's EIN. Irs gov freefilefillableforms 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. Irs gov freefilefillableforms 2. Irs gov freefilefillableforms Who Are Employees? Generally, employees are defined either under common law or under statutes for certain situations. Irs gov freefilefillableforms See Publication 15-A for details on statutory employees and nonemployees. Irs gov freefilefillableforms Employee status under common law. Irs gov freefilefillableforms   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. Irs gov freefilefillableforms This is so even when you give the employee freedom of action. Irs gov freefilefillableforms What matters is that you have the right to control the details of how the services are performed. Irs gov freefilefillableforms See Publication 15-A for more information on how to determine whether an individual providing services is an independent contractor or an employee. Irs gov freefilefillableforms   Generally, people in business for themselves are not employees. Irs gov freefilefillableforms For example, doctors, lawyers, veterinarians, and others in an independent trade in which they offer their services to the public are usually not employees. Irs gov freefilefillableforms However, if the business is incorporated, corporate officers who work in the business are employees of the corporation. Irs gov freefilefillableforms   If an employer-employee relationship exists, it does not matter what it is called. Irs gov freefilefillableforms The employee may be called an agent or independent contractor. Irs gov freefilefillableforms It also does not matter how payments are measured or paid, what they are called, or if the employee works full or part time. Irs gov freefilefillableforms Statutory employees. Irs gov freefilefillableforms   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. Irs gov freefilefillableforms 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. Irs gov freefilefillableforms An agent (or commission) driver who delivers food, beverages (other than milk), laundry, or dry cleaning for someone else. Irs gov freefilefillableforms A full-time life insurance salesperson who sells primarily for one company. Irs gov freefilefillableforms 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. Irs gov freefilefillableforms 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. Irs gov freefilefillableforms The orders must be for merchandise for resale or supplies for use in the customer's business. Irs gov freefilefillableforms The customers must be retailers, wholesalers, contractors, or operators of hotels, restaurants, or other businesses dealing with food or lodging. Irs gov freefilefillableforms    Statutory nonemployees. Irs gov freefilefillableforms   Direct sellers, qualified real estate agents, and certain companion sitters are, by law, considered nonemployees. Irs gov freefilefillableforms They are generally treated as self-employed for all federal tax purposes, including income and employment taxes. Irs gov freefilefillableforms H-2A agricultural workers. Irs gov freefilefillableforms   On Form W-2, do not check box 13 (Statutory employee), as H-2A workers are not statutory employees. Irs gov freefilefillableforms Treating employees as nonemployees. Irs gov freefilefillableforms   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. Irs gov freefilefillableforms 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. Irs gov freefilefillableforms The applicable rates depend on whether you filed required Forms 1099. Irs gov freefilefillableforms 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. Irs gov freefilefillableforms You are liable for the income tax withholding regardless of whether the employee paid income tax on the wages. Irs gov freefilefillableforms You continue to owe the full employer share of social security and Medicare taxes. Irs gov freefilefillableforms The employee remains liable for the employee share of social security and Medicare taxes. Irs gov freefilefillableforms See Internal Revenue Code section 3509 for details. Irs gov freefilefillableforms Also see the Instructions for Form 941-X. Irs gov freefilefillableforms   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. Irs gov freefilefillableforms Section 3509 is not available for reclassifying statutory employees. Irs gov freefilefillableforms See Statutory employees , earlier in this section. Irs gov freefilefillableforms   If the employer issued required information returns, the section 3509 rates are: For social security taxes; employer rate of 6. Irs gov freefilefillableforms 2% plus 20% of the employee rate (see the Instructions for Form 941-X). Irs gov freefilefillableforms For Medicare taxes; employer rate of 1. Irs gov freefilefillableforms 45% plus 20% of the employee rate of 1. Irs gov freefilefillableforms 45%, for a total rate of 1. Irs gov freefilefillableforms 74% of wages. Irs gov freefilefillableforms For Additional Medicare Tax; 0. Irs gov freefilefillableforms 18% (20% of the employee rate of 0. Irs gov freefilefillableforms 9%) of wages subject to Additional Medicare Tax. Irs gov freefilefillableforms For income tax withholding, the rate is 1. Irs gov freefilefillableforms 5% of wages. Irs gov freefilefillableforms   If the employer did not issue required information returns, the section 3509 rates are: For social security taxes; employer rate of 6. Irs gov freefilefillableforms 2% plus 40% of the employee rate (see the Instructions for Form 941-X). Irs gov freefilefillableforms For Medicare taxes; employer rate of 1. Irs gov freefilefillableforms 45% plus 40% of the employee rate of 1. Irs gov freefilefillableforms 45%, for a total rate of 2. Irs gov freefilefillableforms 03% of wages. Irs gov freefilefillableforms For Additional Medicare Tax; 0. Irs gov freefilefillableforms 36% (40% of the employee rate of 0. Irs gov freefilefillableforms 9%) of wages subject to Additional Medicare Tax. Irs gov freefilefillableforms For income tax withholding, the rate is 3. Irs gov freefilefillableforms 0% of wages. Irs gov freefilefillableforms Relief provisions. Irs gov freefilefillableforms   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. Irs gov freefilefillableforms 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. Irs gov freefilefillableforms You (or your predecessor) must not have treated any worker holding a substantially similar position as an employee for any periods beginning after 1977. Irs gov freefilefillableforms See Publication 1976, Do You Qualify for Relief Under Section 530. Irs gov freefilefillableforms IRS help. Irs gov freefilefillableforms   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. Irs gov freefilefillableforms Voluntary Classification Settlement Program (VCSP). Irs gov freefilefillableforms   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. Irs gov freefilefillableforms To apply, use Form 8952, Application for Voluntary Classification Settlement Program (VCSP). Irs gov freefilefillableforms For more information visit IRS. Irs gov freefilefillableforms gov and enter “VCSP” in the search box. Irs gov freefilefillableforms 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. Irs gov freefilefillableforms See Publication 541, Partnerships, for more details. Irs gov freefilefillableforms The partnership is considered the employer of any employees, and is liable for any employment taxes due on wages paid to its employees. Irs gov freefilefillableforms Exception—Qualified joint venture. Irs gov freefilefillableforms   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. Irs gov freefilefillableforms 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). Irs gov freefilefillableforms   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. Irs gov freefilefillableforms Each spouse must also file a separate Schedule SE to pay self-employment taxes, as applicable. Irs gov freefilefillableforms   Spouses using the qualified joint venture rules are treated as sole proprietors for federal tax purposes and generally do not need an EIN. Irs gov freefilefillableforms 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. Irs gov freefilefillableforms Generally, filing as a qualified joint venture will not increase the spouses' total tax owed on the joint income tax return. Irs gov freefilefillableforms 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. Irs gov freefilefillableforms    Note. Irs gov freefilefillableforms If your spouse is your employee, not your partner, see One spouse employed by another in section 3. Irs gov freefilefillableforms   For more information on qualified joint ventures, visit IRS. Irs gov freefilefillableforms gov and enter “qualified joint venture” in the search box. Irs gov freefilefillableforms Exception—Community income. Irs gov freefilefillableforms   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. Irs gov freefilefillableforms S. Irs gov freefilefillableforms possession, you can treat the business either as a sole proprietorship (of the spouse who carried on the business) or a partnership. Irs gov freefilefillableforms You may still make an election to be taxed as a qualified joint venture instead of a partnership. Irs gov freefilefillableforms See Exception—Qualified joint venture , earlier. Irs gov freefilefillableforms 3. Irs gov freefilefillableforms Family Employees Child employed by parents. Irs gov freefilefillableforms   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. Irs gov freefilefillableforms 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. Irs gov freefilefillableforms However, see Covered services of a child or spouse , later in this section. Irs gov freefilefillableforms 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. Irs gov freefilefillableforms 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. Irs gov freefilefillableforms One spouse employed by another. Irs gov freefilefillableforms   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. Irs gov freefilefillableforms 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. Irs gov freefilefillableforms Covered services of a child or spouse. Irs gov freefilefillableforms   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. Irs gov freefilefillableforms Parent employed by son or daughter. Irs gov freefilefillableforms   When the employer is a son or daughter employing his or her parent the following rules apply. Irs gov freefilefillableforms 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. Irs gov freefilefillableforms 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. Irs gov freefilefillableforms    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. Irs gov freefilefillableforms   Payments made to a parent employed by his or her child are not subject to FUTA tax, regardless of the type of services provided. Irs gov freefilefillableforms 4. Irs gov freefilefillableforms 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. Irs gov freefilefillableforms This requirement also applies to resident and nonresident alien employees. Irs gov freefilefillableforms You should ask your employee to show you his or her social security card. Irs gov freefilefillableforms The employee may show the card if it is available. Irs gov freefilefillableforms Do not accept a social security card that says “Not valid for employment. Irs gov freefilefillableforms ” A social security number issued with this legend does not permit employment. Irs gov freefilefillableforms You may, but are not required to, photocopy the social security card if the employee provides it. Irs gov freefilefillableforms 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. Irs gov freefilefillableforms See Publication 1586, Reasonable Cause Regulations & Requirements for Missing and Incorrect Name/TINs, for information on the requirement to solicit the employee's SSN. Irs gov freefilefillableforms Applying for a social security card. Irs gov freefilefillableforms   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. Irs gov freefilefillableforms You can get Form SS-5 at SSA offices, by calling 1-800-772-1213, or from the SSA website at www. Irs gov freefilefillableforms socialsecurity. Irs gov freefilefillableforms gov/online/ss-5. Irs gov freefilefillableforms html. Irs gov freefilefillableforms The employee must complete and sign Form SS-5; it cannot be filed by the employer. Irs gov freefilefillableforms 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. Irs gov freefilefillableforms Applying for a social security number. Irs gov freefilefillableforms   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. Irs gov freefilefillableforms If you are filing electronically, enter all zeros (000-00-000) in the social security number field. Irs gov freefilefillableforms 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. Irs gov freefilefillableforms Furnish copies B, C, and 2 of Form W-2c to the employee. Irs gov freefilefillableforms 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. Irs gov freefilefillableforms For more information, visit the SSA's Employer W-2 Filing Instructions & Information webpage at www. Irs gov freefilefillableforms socialsecurity. Irs gov freefilefillableforms gov/employer. Irs gov freefilefillableforms Advise your employee to correct the SSN on his or her original Form W-2. Irs gov freefilefillableforms Correctly record the employee's name and SSN. Irs gov freefilefillableforms   Record the name and number of each employee as they are shown on the employee's social security card. Irs gov freefilefillableforms 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. Irs gov freefilefillableforms 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. Irs gov freefilefillableforms 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. Irs gov freefilefillableforms 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. Irs gov freefilefillableforms IRS individual taxpayer identification numbers (ITINs) for aliens. Irs gov freefilefillableforms   Do not accept an ITIN in place of an SSN for employee identification or for work. Irs gov freefilefillableforms An ITIN is only available to resident and nonresident aliens who are not eligible for U. Irs gov freefilefillableforms S. Irs gov freefilefillableforms employment and need identification for other tax purposes. Irs gov freefilefillableforms 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). Irs gov freefilefillableforms    An individual with an ITIN who later becomes eligible to work in the United States must obtain an SSN. Irs gov freefilefillableforms 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. Irs gov freefilefillableforms Do not use an ITIN in place of an SSN on Form W-2. Irs gov freefilefillableforms Verification of social security numbers. Irs gov freefilefillableforms   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. Irs gov freefilefillableforms Visit www. Irs gov freefilefillableforms socialsecurity. Irs gov freefilefillableforms gov/employer/ssnv. Irs gov freefilefillableforms htm for more information. Irs gov freefilefillableforms Registering for SSNVS. Irs gov freefilefillableforms   You must register online and receive authorization from your employer to use SSNVS. Irs gov freefilefillableforms To register, visit SSA's website at www. Irs gov freefilefillableforms ssa. Irs gov freefilefillableforms gov/employer and click on the Business Services Online link. Irs gov freefilefillableforms Follow the registration instructions to obtain a user identification (ID) and password. Irs gov freefilefillableforms You will need to provide the following information about yourself and your company. Irs gov freefilefillableforms Name. Irs gov freefilefillableforms SSN. Irs gov freefilefillableforms Date of birth. Irs gov freefilefillableforms Type of employer. Irs gov freefilefillableforms EIN. Irs gov freefilefillableforms Company name, address, and telephone number. Irs gov freefilefillableforms Email address. Irs gov freefilefillableforms   When you have completed the online registration process, SSA will mail a one-time activation code to your employer. Irs gov freefilefillableforms You must enter the activation code online to use SSNVS. Irs gov freefilefillableforms 5. Irs gov freefilefillableforms Wages and Other Compensation Wages subject to federal employment taxes generally include all pay you give to an employee for services performed. Irs gov freefilefillableforms The pay may be in cash or in other forms. Irs gov freefilefillableforms It includes salaries, vacation allowances, bonuses, commissions, and fringe benefits. Irs gov freefilefillableforms It does not matter how you measure or make the payments. Irs gov freefilefillableforms 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. Irs gov freefilefillableforms Also, compensation paid to a former employee for services performed while still employed is wages subject to employment taxes. Irs gov freefilefillableforms More information. Irs gov freefilefillableforms   See section 6 for a discussion of tips and section 7 for a discussion of supplemental wages. Irs gov freefilefillableforms Also, see section 15 for exceptions to the general rules for wages. Irs gov freefilefillableforms Publication 15-A provides additional information on wages, including nonqualified deferred compensation, and other compensation. Irs gov freefilefillableforms 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. Irs gov freefilefillableforms Employee business expense reimbursements. Irs gov freefilefillableforms   A reimbursement or allowance arrangement is a system by which you pay the advances, reimbursements, and charges for your employees' business expenses. Irs gov freefilefillableforms How you report a reimbursement or allowance amount depends on whether you have an accountable or a nonaccountable plan. Irs gov freefilefillableforms If a single payment includes both wages and an expense reimbursement, you must specify the amount of the reimbursement. Irs gov freefilefillableforms   These rules apply to all ordinary and necessary employee business expenses that would otherwise qualify for a deduction by the employee. Irs gov freefilefillableforms Accountable plan. Irs gov freefilefillableforms   To be an accountable plan, your reimbursement or allowance arrangement must require your employees to meet all three of the following rules. Irs gov freefilefillableforms They must have paid or incurred deductible expenses while performing services as your employees. Irs gov freefilefillableforms 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. Irs gov freefilefillableforms They must substantiate these expenses to you within a reasonable period of time. Irs gov freefilefillableforms They must return any amounts in excess of substantiated expenses within a reasonable period of time. Irs gov freefilefillableforms   Amounts paid under an accountable plan are not wages and are not subject to income, social security, Medicare, and FUTA taxes. Irs gov freefilefillableforms   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. Irs gov freefilefillableforms 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. Irs gov freefilefillableforms   A reasonable period of time depends on the facts and circumstances. Irs gov freefilefillableforms 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. Irs gov freefilefillableforms 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. Irs gov freefilefillableforms Nonaccountable plan. Irs gov freefilefillableforms   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. Irs gov freefilefillableforms 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. Irs gov freefilefillableforms   See section 7 for more information on supplemental wages. Irs gov freefilefillableforms Per diem or other fixed allowance. Irs gov freefilefillableforms   You may reimburse your employees by travel days, miles, or some other fixed allowance under the applicable revenue procedure. Irs gov freefilefillableforms In these cases, your employee is considered to have accounted to you if your reimbursement does not exceed rates established by the Federal Government. Irs gov freefilefillableforms The 2013 standard mileage rate for auto expenses was 56. Irs gov freefilefillableforms 5 cents per mile. Irs gov freefilefillableforms The rate for 2014 is 56 cents per mile. Irs gov freefilefillableforms   The government per diem rates for meals and lodging in the continental United States are listed in Publication 1542, Per Diem Rates. Irs gov freefilefillableforms 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). Irs gov freefilefillableforms   If the per diem or allowance paid exceeds the amounts substantiated, you must report the excess amount as wages. Irs gov freefilefillableforms This excess amount is subject to income tax withholding and payment of social security, Medicare, and FUTA taxes. Irs gov freefilefillableforms Show the amount equal to the substantiated amount (for example, the nontaxable portion) in box 12 of Form W-2 using code “L. Irs gov freefilefillableforms ” Wages not paid in money. Irs gov freefilefillableforms   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. Irs gov freefilefillableforms ” Payments in kind may be in the form of goods, lodging, food, clothing, or services. Irs gov freefilefillableforms 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. Irs gov freefilefillableforms   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. Irs gov freefilefillableforms Withhold income tax on these payments only if you and the employee agree to do so. Irs gov freefilefillableforms 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. Irs gov freefilefillableforms Moving expenses. Irs gov freefilefillableforms   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. Irs gov freefilefillableforms Reimbursed and employer-paid nonqualified moving expenses are includible in income and are subject to employment taxes and income tax withholding. Irs gov freefilefillableforms For more information on moving expenses, see Publication 521, Moving Expenses. Irs gov freefilefillableforms Meals and lodging. Irs gov freefilefillableforms   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. Irs gov freefilefillableforms 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. Irs gov freefilefillableforms    “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. Irs gov freefilefillableforms 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. Irs gov freefilefillableforms   However, whether meals or lodging are provided for the convenience of the employer depends on all of the facts and circumstances. Irs gov freefilefillableforms A written statement that the meals or lodging are for your convenience is not sufficient. Irs gov freefilefillableforms 50% test. Irs gov freefilefillableforms   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. Irs gov freefilefillableforms 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. Irs gov freefilefillableforms For more information, see Publication 15-B. Irs gov freefilefillableforms Health insurance plans. Irs gov freefilefillableforms   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. Irs gov freefilefillableforms Generally, this exclusion also applies to qualified long-term care insurance contracts. Irs gov freefilefillableforms 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). Irs gov freefilefillableforms 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. Irs gov freefilefillableforms See Announcement 92-16 for more information. Irs gov freefilefillableforms You can find Announcement 92-16 on page 53 of Internal Revenue Bulletin 1992-5. Irs gov freefilefillableforms Health Savings Accounts and medical savings accounts. Irs gov freefilefillableforms   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. Irs gov freefilefillableforms To the extent it is not reasonable to believe they will be excludable, your contributions are subject to these taxes. Irs gov freefilefillableforms 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. Irs gov freefilefillableforms 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. Irs gov freefilefillableforms For more information, see the Instructions for Form 8889, Health Savings Accounts (HSAs). Irs gov freefilefillableforms Medical care reimbursements. Irs gov freefilefillableforms   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. Irs gov freefilefillableforms See Publication 15-B for an exception for highly compensated employees. Irs gov freefilefillableforms Differential wage payments. Irs gov freefilefillableforms   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. Irs gov freefilefillableforms   Differential wage payments are wages for income tax withholding, but are not subject to social security, Medicare, or FUTA taxes. Irs gov freefilefillableforms Employers should report differential wage payments in box 1 of Form W-2. Irs gov freefilefillableforms For more information about the tax treatment of differential wage payments, visit IRS. Irs gov freefilefillableforms gov and enter “employees in a combat zone” in the search box. Irs gov freefilefillableforms Fringe benefits. Irs gov freefilefillableforms   You generally must include fringe benefits in an employee's gross income (but see Nontaxable fringe benefits next). Irs gov freefilefillableforms The benefits are subject to income tax withholding and employment taxes. Irs gov freefilefillableforms 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. Irs gov freefilefillableforms 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. Irs gov freefilefillableforms There are other special rules you and your employees may use to value certain fringe benefits. Irs gov freefilefillableforms See Publication 15-B for more information. Irs gov freefilefillableforms Nontaxable fringe benefits. Irs gov freefilefillableforms   Some fringe benefits are not taxable (or are minimally taxable) if certain conditions are met. Irs gov freefilefillableforms See Publication 15-B for details. Irs gov freefilefillableforms The following are some examples of nontaxable fringe benefits. Irs gov freefilefillableforms Services provided to your employees at no additional cost to you. Irs gov freefilefillableforms Qualified employee discounts. Irs gov freefilefillableforms Working condition fringes that are property or services the employee could deduct as a business expense if he or she had paid for it. Irs gov freefilefillableforms Examples include a company car for business use and subscriptions to business magazines. Irs gov freefilefillableforms 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). Irs gov freefilefillableforms Qualified transportation fringes subject to specified conditions and dollar limitations (including transportation in a commuter highway vehicle, any transit pass, and qualified parking). Irs gov freefilefillableforms Qualified moving expense reimbursement. Irs gov freefilefillableforms See Moving expenses , earlier in this section, for details. Irs gov freefilefillableforms The use of on-premises athletic facilities, if substantially all of the use is by employees, their spouses, and their dependent children. Irs gov freefilefillableforms Qualified tuition reduction an educational organization provides to its employees for education. Irs gov freefilefillableforms For more information, see Publication 970, Tax Benefits for Education. Irs gov freefilefillableforms Employer-provided cell phones provided primarily for a noncompensatory business reason. Irs gov freefilefillableforms   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. Irs gov freefilefillableforms No-additional-cost services. Irs gov freefilefillableforms Qualified employee discounts. Irs gov freefilefillableforms Meals provided at an employer operated eating facility. Irs gov freefilefillableforms Reduced tuition for education. Irs gov freefilefillableforms  For more information, including the definition of a highly compensated employee, see Publication 15-B. Irs gov freefilefillableforms When fringe benefits are treated as paid. Irs gov freefilefillableforms   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. Irs gov freefilefillableforms You do not have to make a formal choice of payment dates or notify the IRS of the dates you choose. Irs gov freefilefillableforms You do not have to make this choice for all employees. Irs gov freefilefillableforms 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. Irs gov freefilefillableforms See Publication 15-B for more information, including a discussion of the special accounting rule for fringe benefits provided during November and December. Irs gov freefilefillableforms Valuation of fringe benefits. Irs gov freefilefillableforms   Generally, you must determine the value of fringe benefits no later than January 31 of the next year. Irs gov freefilefillableforms Before January 31, you may reasonably estimate the value of the fringe benefits for purposes of withholding and depositing on time. Irs gov freefilefillableforms Withholding on fringe benefits. Irs gov freefilefillableforms   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. Irs gov freefilefillableforms However, see Withholding on supplemental wages when an employee receives more than $1 million of supplemental wages during the calendar year in section 7. Irs gov freefilefillableforms   You may choose not to withhold income tax on the value of an employee's personal use of a vehicle you provide. Irs gov freefilefillableforms You must, however, withhold social security and Medicare taxes on the use of the vehicle. Irs gov freefilefillableforms See Publication 15-B for more information on this election. Irs gov freefilefillableforms Depositing taxes on fringe benefits. Irs gov freefilefillableforms   Once you choose when fringe benefits are paid, you must deposit taxes in the same deposit period you treat the fringe benefits as paid. Irs gov freefilefillableforms To avoid a penalty, deposit the taxes following the general deposit rules for that deposit period. Irs gov freefilefillableforms   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. Irs gov freefilefillableforms See Valuation of fringe benefits , earlier. Irs gov freefilefillableforms If you underestimated the value and deposited too little, you may be subject to a failure-to-deposit penalty. Irs gov freefilefillableforms See section 11 for information on deposit penalties. Irs gov freefilefillableforms   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. Irs gov freefilefillableforms However, you must recover the income taxes before April 1 of the following year. Irs gov freefilefillableforms Sick pay. Irs gov freefilefillableforms   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. Irs gov freefilefillableforms These amounts are sometimes paid by a third party, such as an insurance company or an employees' trust. Irs gov freefilefillableforms In either case, these payments are subject to social security, Medicare, and FUTA taxes. Irs gov freefilefillableforms 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. Irs gov freefilefillableforms The payments are always subject to federal income tax. Irs gov freefilefillableforms See Publication 15-A for more information. Irs gov freefilefillableforms 6. Irs gov freefilefillableforms Tips Tips your employee receives from customers are generally subject to withholding. Irs gov freefilefillableforms Your employee must report cash tips to you by the 10th of the month after the month the tips are received. Irs gov freefilefillableforms 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. Irs gov freefilefillableforms Both directly and indirectly tipped employees must report tips to you. Irs gov freefilefillableforms No report is required for months when tips are less than $20. Irs gov freefilefillableforms Your employee reports the tips on Form 4070, Employee's Report of Tips to Employer, or on a similar statement. Irs gov freefilefillableforms 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. Irs gov freefilefillableforms 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. Irs gov freefilefillableforms You are permitted to establish a system for electronic tip reporting by employees. Irs gov freefilefillableforms See Regulations section 31. Irs gov freefilefillableforms 6053-1(d). Irs gov freefilefillableforms Collecting taxes on tips. Irs gov freefilefillableforms   You must collect income tax, employee social security tax, and employee Medicare tax on the employee's tips. Irs gov freefilefillableforms 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. Irs gov freefilefillableforms If an employee reports to you in writing $20 or more of tips in a month, the tips are also subject to FUTA tax. Irs gov freefilefillableforms   You can collect these taxes from the employee's wages or from other funds he or she makes available. Irs gov freefilefillableforms See Tips treated as supplemental wages in section 7 for more information. Irs gov freefilefillableforms 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. Irs gov freefilefillableforms You are responsible for the employer social security tax on wages and tips until the wages (including tips) reach the limit. Irs gov freefilefillableforms You are responsible for the employer Medicare tax for the whole year on all wages and tips. Irs gov freefilefillableforms File Form 941 or Form 944 to report withholding and employment taxes on tips. Irs gov freefilefillableforms Ordering rule. Irs gov freefilefillableforms   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. Irs gov freefilefillableforms If there are not enough funds available, withhold taxes in the following order. Irs gov freefilefillableforms Withhold on regular wages and other compensation. Irs gov freefilefillableforms Withhold social security and Medicare taxes on tips. Irs gov freefilefillableforms Withhold income tax on tips. Irs gov freefilefillableforms Reporting tips. Irs gov freefilefillableforms   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). Irs gov freefilefillableforms Report an adjustment on Form 941, line 9 (Form 944, line 6), for the uncollected social security and Medicare taxes. Irs gov freefilefillableforms Enter the amount of uncollected social security tax and Medicare tax on Form W-2, box 12, with codes “A” and “B. Irs gov freefilefillableforms ” Do not include any uncollected Additional Medicare Tax in box 12 of Form W-2. Irs gov freefilefillableforms See section 13 and the General Instructions for Forms W-2 and W-3. Irs gov freefilefillableforms   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. Irs gov freefilefillableforms See Revenue Ruling 2012-18, 2012-26 I. Irs gov freefilefillableforms R. Irs gov freefilefillableforms B. Irs gov freefilefillableforms 1032, available at www. Irs gov freefilefillableforms irs. Irs gov freefilefillableforms gov/irb/2012-26_IRB/ar07. Irs gov freefilefillableforms html. Irs gov freefilefillableforms Allocated tips. Irs gov freefilefillableforms   If you operate a large food or beverage establishment, you must report allocated tips under certain circumstances. Irs gov freefilefillableforms However, do not withhold income, social security, or Medicare taxes on allocated tips. Irs gov freefilefillableforms   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. Irs gov freefilefillableforms   The tips may be allocated by one of three methods—hours worked, gross receipts, or good faith agreement. Irs gov freefilefillableforms 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. Irs gov freefilefillableforms For information on filing Form 8027 electronically with the IRS, see Publication 1239. Irs gov freefilefillableforms Tip Rate Determination and Education Program. Irs gov freefilefillableforms   Employers may participate in the Tip Rate Determination and Education Program. Irs gov freefilefillableforms 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. Irs gov freefilefillableforms The two agreements are the Tip Rate Determination Agreement (TRDA) and the Tip Reporting Alternative Commitment (TRAC). Irs gov freefilefillableforms A tip agreement, the Gaming Industry Tip Compliance Agreement (GITCA), is available for the gaming (casino) industry. Irs gov freefilefillableforms To get more information about TRDA and TRAC agreements, see Publication 3144, Tips on Tips. Irs gov freefilefillableforms Additionally, visit IRS. Irs gov freefilefillableforms gov and enter “MSU tips” in the search box to get more information about GITCA, TRDA, or TRAC agreements. Irs gov freefilefillableforms 7. Irs gov freefilefillableforms Supplemental Wages Supplemental wages are wage payments to an employee that are not regular wages. Irs gov freefilefillableforms 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. Irs gov freefilefillableforms Other payments subject to the supplemental wage rules include taxable fringe benefits and expense allowances paid under a nonaccountable plan. Irs gov freefilefillableforms How you withhold on supplemental wages depends on whether the supplemental payment is identified as a separate payment from regular wages. Irs gov freefilefillableforms See Regulations section 31. Irs gov freefilefillableforms 3402(g)-1 for additional guidance for wages paid after January 1, 2007. Irs gov freefilefillableforms Also see Revenue Ruling 2008-29, 2008-24 I. Irs gov freefilefillableforms R. Irs gov freefilefillableforms B. Irs gov freefilefillableforms 1149, available at www. Irs gov freefilefillableforms irs. Irs gov freefilefillableforms gov/irb/2008-24_IRB/ar08. Irs gov freefilefillableforms html. Irs gov freefilefillableforms Withholding on supplemental wages when an employee receives more than $1 million of supplemental wages from you during the calendar year. Irs gov freefilefillableforms   Special rules apply to the extent supplemental wages paid to any one employee during the calendar year exceed $1 million. Irs gov freefilefillableforms 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. Irs gov freefilefillableforms 6% (or the highest rate of income tax for the year). Irs gov freefilefillableforms Withhold using the 39. Irs gov freefilefillableforms 6% rate without regard to the employee's Form W-4. Irs gov freefilefillableforms In determining supplemental wages paid to the employee during the year, include payments from all businesses under common control. Irs gov freefilefillableforms For more information, see Treasury Decision 9276, 2006-37 I. Irs gov freefilefillableforms R. Irs gov freefilefillableforms B. Irs gov freefilefillableforms 423, available at www. Irs gov freefilefillableforms irs. Irs gov freefilefillableforms gov/irb/2006-37_IRB/ar09. Irs gov freefilefillableforms html. Irs gov freefilefillableforms Withholding on supplemental wage payments to an employee who does not receive $1 million of supplemental wages during the calendar year. Irs gov freefilefillableforms   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. Irs gov freefilefillableforms Supplemental wages combined with regular wages. Irs gov freefilefillableforms   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. Irs gov freefilefillableforms Supplemental wages identified separately from regular wages. Irs gov freefilefillableforms   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. Irs gov freefilefillableforms 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. Irs gov freefilefillableforms Withhold a flat 25% (no other percentage allowed). Irs gov freefilefillableforms If the supplemental wages are paid concurrently with regular wages, add the supplemental wages to the concurrently paid regular wages. Irs gov freefilefillableforms 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. Irs gov freefilefillableforms Figure the income tax withholding as if the total of the regular wages and supplemental wages is a single payment. Irs gov freefilefillableforms Subtract the tax withheld from the regular wages. Irs gov freefilefillableforms Withhold the remaining tax from the supplemental wages. Irs gov freefilefillableforms 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. Irs gov freefilefillableforms 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. Irs gov freefilefillableforms This would occur, for example, when the value of the employee's withholding allowances claimed on Form W-4 is more than the wages. Irs gov freefilefillableforms Regardless of the method you use to withhold income tax on supplemental wages, they are subject to social security, Medicare, and FUTA taxes. Irs gov freefilefillableforms Example 1. Irs gov freefilefillableforms You pay John Peters a base salary on the 1st of each month. Irs gov freefilefillableforms He is single and claims one withholding allowance. Irs gov freefilefillableforms In January he is paid $1,000. Irs gov freefilefillableforms Using the wage bracket tables, you withhold $50 from this amount. Irs gov freefilefillableforms 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. Irs gov freefilefillableforms You figure the withholding based on the total of $3,000. Irs gov freefilefillableforms The correct withholding from the tables is $338. Irs gov freefilefillableforms Example 2. Irs gov freefilefillableforms You pay Sharon Warren a base salary on the 1st of each month. Irs gov freefilefillableforms She is single and claims one allowance. Irs gov freefilefillableforms Her May 1 pay is $2,000. Irs gov freefilefillableforms Using the wage bracket tables, you withhold $188. Irs gov freefilefillableforms On May 14 she receives a bonus of $1,000. Irs gov freefilefillableforms 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). Irs gov freefilefillableforms Determine the amount of withholding on the combined $3,000 amount to be $338 using the wage bracket tables. Irs gov freefilefillableforms Subtract the amount withheld from wages on the most recent base salary pay date (May 1) from the combined withholding amount ($338 – $188 = $150). Irs gov freefilefillableforms Withhold $150 from the bonus payment. Irs gov freefilefillableforms Example 3. Irs gov freefilefillableforms The facts are the same as in Example 2, except you elect to use the flat rate method of withholding on the bonus. Irs gov freefilefillableforms You withhold 25% of $1,000, or $250, from Sharon's bonus payment. Irs gov freefilefillableforms Example 4. Irs gov freefilefillableforms The facts are the same as in Example 2, except you elect to pay Sharon a second bonus of $2,000 on May 28. Irs gov freefilefillableforms 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). Irs gov freefilefillableforms Determine the amount of withholding on the combined $5,000 amount to be $781 using the wage bracket tables. Irs gov freefilefillableforms 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). Irs gov freefilefillableforms Withhold $443 from the second bonus payment. Irs gov freefilefillableforms Tips treated as supplemental wages. Irs gov freefilefillableforms   Withhold income tax on tips from wages earned by the employee or from other funds the employee makes available. Irs gov freefilefillableforms If an employee receives regular wages and reports tips, figure income tax withholding as if the tips were supplemental wages. Irs gov freefilefillableforms If you have not withheld income tax from the regular wages, add the tips to the regular wages. Irs gov freefilefillableforms Then withhold income tax on the total. Irs gov freefilefillableforms 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. Irs gov freefilefillableforms Vacation pay. Irs gov freefilefillableforms   Vacation pay is subject to withholding as if it were a regular wage payment. Irs gov freefilefillableforms When vacation pay is in addition to regular wages for the vacation period, treat it as a supplemental wage payment. Irs gov freefilefillableforms 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. Irs gov freefilefillableforms 8. Irs gov freefilefillableforms Payroll Period Your payroll period is a period of service for which you usually pay wages. Irs gov freefilefillableforms When you have a regular payroll period, withhold income tax for that time period even if your employee does not work the full period. Irs gov freefilefillableforms No regular payroll period. Irs gov freefilefillableforms   When you do not have a regular payroll period, withhold the tax as if you paid wages for a daily or miscellaneous payroll period. Irs gov freefilefillableforms Figure the number of days (including Sundays and holidays) in the period covered by the wage payment. Irs gov freefilefillableforms 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. Irs gov freefilefillableforms Employee paid for period less than 1 week. Irs gov freefilefillableforms   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. Irs gov freefilefillableforms If the employee later begins to work for another employer for wages subject to withholding, the employee must notify you within 10 days. Irs gov freefilefillableforms You then figure withholding based on the daily or miscellaneous period. Irs gov freefilefillableforms 9. Irs gov freefilefillableforms Withholding From Employees' Wages Income Tax Withholding Using Form W-4 to figure withholding. Irs gov freefilefillableforms   To know how much federal income tax to withhold from employees' wages, you should have a Form W-4 on file for each employee. Irs gov freefilefillableforms 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. Irs gov freefilefillableforms Advise your employees to use the IRS Withholding Calculator on the IRS website at www. Irs gov freefilefillableforms irs. Irs gov freefilefillableforms gov/individuals for help in determining how many withholding allowances to claim on their Forms W-4. Irs gov freefilefillableforms   Ask all new employees to give you a signed Form W-4 when they start work. Irs gov freefilefillableforms Make the form effective with the first wage payment. Irs gov freefilefillableforms 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. Irs gov freefilefillableforms Form in Spanish. Irs gov freefilefillableforms   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. Irs gov freefilefillableforms For more information, see Publicación 17(SP), El Impuesto Federal sobre los Ingresos (Para Personas Físicas). Irs gov freefilefillableforms The rules discussed in this section that apply to Form W-4 also apply to Formulario W-4(SP). Irs gov freefilefillableforms Electronic system to receive Form W-4. Irs gov freefilefillableforms   You may establish a system to electronically receive Forms W-4 from your employees. Irs gov freefilefillableforms See Regulations section 31. Irs gov freefilefillableforms 3402(f)(5)-1(c) for more information. Irs gov freefilefillableforms Effective date of Form W-4. Irs gov freefilefillableforms   A Form W-4 remains in effect until the employee gives you a new one. Irs gov freefilefillableforms 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. Irs gov freefilefillableforms 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. Irs gov freefilefillableforms 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. Irs gov freefilefillableforms A Form W-4 that makes a change for the next calendar year will not take effect in the current calendar year. Irs gov freefilefillableforms Successor employer. Irs gov freefilefillableforms   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. Irs gov freefilefillableforms See Revenue Procedure 2004-53, 2004-34 I. Irs gov freefilefillableforms R. Irs gov freefilefillableforms B. Irs gov freefilefillableforms 320, available at www. Irs gov freefilefillableforms irs. Irs gov freefilefillableforms gov/irb/2004-34_IRB/ar13. Irs gov freefilefillableforms html. Irs gov freefilefillableforms Completing Form W-4. Irs gov freefilefillableforms   The amount of any federal income tax withholding must be based on marital status and withholding allowances. Irs gov freefilefillableforms Your employees may not base their withholding amounts on a fixed dollar amount or percentage. Irs gov freefilefillableforms 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. Irs gov freefilefillableforms Employees may claim fewer withholding allowances than they are entitled to claim. Irs gov freefilefillableforms 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. Irs gov freefilefillableforms See Publication 505, Tax Withholding and Estimated Tax, for more information about completing Form W-4. Irs gov freefilefillableforms Along with Form W-4, you may wish to order Publication 505 for use by your employees. Irs gov freefilefillableforms Do not accept any withholding or estimated tax payments from your employees in addition to withholding based on their Form W-4. Irs gov freefilefillableforms 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. Irs gov freefilefillableforms Exemption from federal income tax withholding. Irs gov freefilefillableforms   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. Irs gov freefilefillableforms See the Form W-4 instructions for more information. Irs gov freefilefillableforms However, the wages are still subject to social security and Medicare taxes. Irs gov freefilefillableforms See also Invalid Forms W-4 , later in this section. Irs gov freefilefillableforms   A Form W-4 claiming exemption from withholding is effective when it is filed with the employer and only for that calendar year. Irs gov freefilefillableforms 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. Irs gov freefilefillableforms 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. Irs gov freefilefillableforms 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. Irs gov freefilefillableforms Withholding income taxes on the wages of nonresident alien employees. Irs gov freefilefillableforms   In general, you must withhold federal income taxes on the wages of nonresident alien employees. Irs gov freefilefillableforms However, see Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities, for exceptions to this general rule. Irs gov freefilefillableforms Also see section 3 of Publication 51 (Circular A), Agricultural Employer's Tax Guide, for guidance on H-2A visa workers. Irs gov freefilefillableforms Withholding adjustment for nonresident alien employees. Irs gov freefilefillableforms   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. Irs gov freefilefillableforms Nonresident alien students from India and business apprentices from India are not subject to this procedure. Irs gov freefilefillableforms Instructions. Irs gov freefilefillableforms   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. Irs gov freefilefillableforms Step 1. Irs gov freefilefillableforms   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. Irs gov freefilefillableforms    Amount to Add to Nonresident Alien Employee's Wages for Calculating Income Tax Withholding Only   Payroll Period Add Additional     Weekly $ 43. Irs gov freefilefillableforms 30     Biweekly 86. Irs gov freefilefillableforms 50     Semimonthly 93. Irs gov freefilefillableforms 80     Monthly 187. Irs gov freefilefillableforms 50     Quarterly 562. Irs gov freefilefillableforms 50     Semiannually 1,125. Irs gov freefilefillableforms 00     Annually 2,250. Irs gov freefilefillableforms 00     Daily or Miscellaneous (each day of the payroll period) 8. Irs gov freefilefillableforms 70   Step 2. Irs gov freefilefillableforms   Use the amount figured in Step 1 and the number of withholding allowances claimed (generally limited to one allowance) to figure income tax withholding. Irs gov freefilefillableforms Determine the value of withholding allowances by multiplying the number of withholding allowances claimed by the appropriate amount from Table 5. Irs gov freefilefillableforms Percentage Method—2014 Amount for One Withholding Allowance shown on page 41. Irs gov freefilefillableforms 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. Irs gov freefilefillableforms 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. Irs gov freefilefillableforms The amounts from the chart above are added to wages solely for calculating income tax withholding on the wages of the nonresident alien employee. Irs gov freefilefillableforms 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. Irs gov freefilefillableforms 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. Irs gov freefilefillableforms This procedure only applies to nonresident alien employees who have wages subject to income tax withholding. Irs gov freefilefillableforms Example. Irs gov freefilefillableforms An employer using the percentage method of withholding pays wages of $500 for a biweekly payroll period to a married nonresident alien employee. Irs gov freefilefillableforms 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). Irs gov freefilefillableforms 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. Irs gov freefilefillableforms 50 from the chart under Step 1 ($586. Irs gov freefilefillableforms 50 total). Irs gov freefilefillableforms The employer then applies the applicable tables to determine the income tax withholding for nonresident aliens (see Step 2 ). Irs gov freefilefillableforms 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. Irs gov freefilefillableforms The $86. Irs gov freefilefillableforms 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. Irs gov freefilefillableforms Also, the $86. Irs gov freefilefillableforms 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. Irs gov freefilefillableforms Supplemental wage payment. Irs gov freefilefillableforms   This procedure for determining the amount of income tax withholding does not apply to a supplemental wage payment (see section 7) if the 39. Irs gov freefilefillableforms 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. Irs gov freefilefillableforms Nonresident alien employee's Form W-4. Irs gov freefilefillableforms   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. Irs gov freefilefillableforms   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. Irs gov freefilefillableforms 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. Irs gov freefilefillableforms Form 8233. Irs gov freefilefillableforms   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. Irs gov freefilefillableforms See Publication 515 for details. Irs gov freefilefillableforms IRS review of requested Forms W-4. Irs gov freefilefillableforms   When requested by the IRS, you must make original Forms W-4 available for inspection by an IRS employee. Irs gov freefilefillableforms You may also be directed to send certain Forms W-4 to the IRS. Irs gov freefilefillableforms 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. Irs gov freefilefillableforms 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. Irs gov freefilefillableforms 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. Irs gov freefilefillableforms R. Irs gov freefilefillableforms B. Irs gov freefilefillableforms 455, which is available at www. Irs gov freefilefillableforms irs. Irs gov freefilefillableforms gov/irb/2007-35_IRB/ar10. Irs gov freefilefillableforms html. Irs gov freefilefillableforms When we refer to Form W-4, the same rules apply to Formulario W-4(SP), its Spanish translation. Irs gov freefilefillableforms 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). Irs gov freefilefillableforms 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