IRS Issues Draft of New Form W-4

As expected, the IRS has published a draft of a radically revised Form W-4, Employee’s Withholding Allowance Certificate. The agency emphasizes this is just a preliminary version, and until further notice, everyone should continue to use the current version....

Proper Reporting for QSEHRA Benefits

Introduced in 2017 via the 21st Century Cures Act, the QSEHRA is an employer-funded health benefit that enables tax-free reimbursements. Only small employers with fewer than 50 full-time employees and those who do not otherwise provide a group health plan can offer a...

Know Your Lookback Period for Payroll Taxes

A lookback period is the length of time that the IRS uses to measure the amount of taxes paid by an employer. The lookback period also helps the employer determine its deposit schedule.Payroll Taxes, Filings and Lookback PeriodsEmployers must withhold federal income...

Which Employees Are Exempt From Tax Withholding?

Tax withholding is a seemingly inevitable part of working, but there are exceptions, as shown by the following information about employees exempt from withholding.Student employeesGenerally, individuals employed by a school, college or university where they are also...

2018 Changes for J-1 Visa Taxes

Wages earned by J-1 employees have always been taxable for Federal and State income tax but exempt from Social Security and Medicare. As a result of tax reform in 2018, there is no longer a personal exemption for J-1 employees. Prior to 2018, the personal exemption...