ALERT Your Employees: They May be Underpaying Federal Income Tax

Here is a timely item from the current, September 2009, issue of our member monthly newsletter, The General Ledger…..

Because of the new withholding tables under the American Recovery and Reinvestment Act, some employees might want to adjust their 2009 FITW by submitting a new W-4 now. The Act reduced FITW to reflect the Make Work Pay tax credit. But for some employees, that adjustment may result in paying less than the required 90% of FIT by Dec. 31, 2009, which may lead to penalties.

Employees most likely to have too little withheld under the new tables are:
· Two-earner married couples;
· Individuals with more than one job;
· A dependent on another’s tax return (they are not eligible for the credit, but you will withhold as
though they were);
· Those receiving a pension; and
· Individuals also receiving Economic Recovery Payments (they are not eligible for the credit, but you
will withhold as though they were.

AIPB Tip: Provide employees with a copy of the “Notice to Employees” on page 73 of IRS Pub. 15-T, at http://www.irs.gov and/or direct employees to the IRS Withholding Calculator on its Web site (type “withholding calculator” in the IRS search box), now updated to reflect the new withholding.

Call ATD Solutions if you have any questions, 248-620-1177

Source: Atd Solutions’s Blog

Source: Atd Solutions’s Blog

Source: Atd Solutions’s Blog

Source: Atd Solutions’s Blog

Source: Atd Solutions’s Blog

Source: Atd Solutions’s Blog

Source: Atd Solutions’s Blog

Source: Atd Solutions’s Blog

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About atdsolutions

Attention To Detail Bookkeeping and QuickBooks Consulting, the leading QuickBooks bookkeeping frim! We strive to provide our clients with detail-oriented computerized bookkeeping services on a timely, cost-effective basis. We help to streamline processes, make you more efficient and reduce you year end tax bill. With our services, our clients are able to work ON their business instead of IN their business. In addition to bookkeeping, we also offer QuickBooks set-up, training and consulting, and we are your Intuit Solutions Provider. Purchase all of your QuickBooks software and hardware from us and save even more than just time! Lastly, get all your business forms from us including QuickBooks compatible checks and deposit tickets. Contact our office today at 248-620-1177 to learn more on how we can positively impact your bottom line!
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