Ask Experts Questions for FREE Help !
    chryste7's Avatar
    chryste7 Posts: 26, Reputation: 1
    New Member

    Apr 13, 2009, 04:30 PM
    Federal witholding tax from payroll
    We live in North Carolina. My wife gets paid every 2 weeks from a private investigating firm of which she is the Office Manager. Her last 3-4 payroll checks did not include any Federal witholding tax which is good for us as her take home pay has increased BUT does this mean that she will be owing the IRS when it comes time to file our 2009 Federal tax returns in 2010? We file joint returns as husband and wife. Have the tax tables recently changed? If not, will we be penalized for failing to pay Federal taxes during the year? I (husband) receive a pension and social security income. I'm confused. Can someone please explain if there is some action I should be taking now to prevent owing the IRS?

    Thanks so much, Jim
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man

    Apr 13, 2009, 05:47 PM
    Yes the tax tables changed so her income might be below withholding limits, but you can ask payroll to confirm that.

    If you are underwithheld for the year you could incure penalties. What I would suggest is getting something like turbo tax to do some what if projections. Then you may need to adjust her W4.
    Wildsporty's Avatar
    Wildsporty Posts: 445, Reputation: 38
    Full Member

    Apr 15, 2009, 07:35 PM

    The taxes are figured on the W-4 filled out by the employee. If you claim less exemptions on the W-4 more tax will be withheld.

    If your wife makes more than 32,000 a year you may have to pay taxes on a portion of your social security taxes.

    There is a spreadsheet you can fill out to find that out you can get that and other information on the IRS.GOV website. It is explained in the instructions for 1040 income taxes.

    The new stimulus package did lower the tax tables, however, no one knows how it will affect the refunds at the end of the year. Most of my employees are claiming one less exemption so more taxes will be taken out just in case.


Not your question? Ask your question View similar questions


Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.

Check out some similar questions!

Ouickbooks payroll j/e, cash basis using a Payroll Co. [ 5 Answers ]

We use a payroll company to process our payroll. Each payroll they deduct the money for our taxes. If I enter the taxes as a payable, it messes up my books because the money is already deducted with the biweekly payroll. My quarterly reports did not match my QB files and I cannot figure out what...

Payroll federal tax withholdlings [ 1 Answers ]

I currently have a flat $100 dollars taken from my gross income for federal taxes. In the past I was working two jobs,one waiting tables, which always messed with what I ended up owing. I no longer wait tables and wonder if it would be better to go single zero for federal, like all other payroll...

Is it possible to be exempt from federal witholding as a full-time employed person? [ 4 Answers ]

My friend and I are both nurses at the same hospital making the same income. On our first paycheck I had $440 taken out for federal witholding but my friend didn't even a federal witholding bracket on her paycheck, so she didn't have any money taken out except for SS and medicare. We both claimed...

Remitting Federal Payroll tax [ 1 Answers ]

I recently joined a brand new company, and have had to completely set up all areas in the accounting office. I have received all Sales Tax forms to remit, but have not received anything regarding payroll tax. Who should I call to find out where the packet of remittance coupons and other...

Federal Wage information is missing in my W2. How can I pay my Federal tax? [ 5 Answers ]

Hi, Last year, I was working as F1 in OPT. As F1, I can exempt from society security tax and medicare tax. But the accounting company also exempted my Federal tax and told me that was the way to do it. I thought I could report my Federal tax later, so I let it go. But right now, I get my...

View more questions Search