- Client report.
SOCIAL SECURITY WAGE BASE RISES IN 1997 The ceiling for computing the Social Security tax will rise from $62,700 in 1996 to $65,400 in 1997. The Federal Insurance Contributions Act (FICA) imposes two taxes on employers, employees and self-employed workers - one for "Old Age, Survivors and Disability Insurance," commonly ......
- Got tips? Better report them.
The inside scoop on computing and reporting taxes on restaurant gratuities. You've just eaten an exquisite meal in a fine restaurant. Feeling satiated and generous, you decide to leave the superb wait staff a rather large gratuity. Hours after you've left the restaurant, that tip is pooled with others and ......
- Taxing Social Security benefits.
Under IRC section 86 a taxpayer must reach a certain income level before his or her Social Security benefits are taxable. For married taxpayers filing separately and living apart, that threshold is $25,000. But if the taxpayer files separately and lives with his or her spouse, the threshold is zero....
- W-2s (and W-4s) for Employees
IRS Form W-2 (Wage and Tax Statement) Corporations must file IRS Form W-2 (Wage and Tax Statement) to report payments to your employees, such as wages, tips, and other compensation; withheld income; Social Security; Medicare taxes; and advance earned income credit (EIC) payments. Form W-2 is completed for each employee ......
- News Notes.
EXPECTED IRS GUIDANCE * ROTH IRAs * INTERNET TAX FREEDOM ACT * SOCIAL SECURITY LIMITS * AICPA BROCHURES (CHART) FROM THE IRS Expected Guidance By year-end, the IRS expects to finish a host of guidance projects, including regulations on the following: * Sec. 197 amortization of intangibles. * Capitalization of ......
- Back wages and payment of FICA and
FUTA.
Wage earners generally are required to pay FICA taxes in the year they receive their wages, computed at the applicable rates for that year. Likewise, employers are required to pay both FICA (IRC section 3111) and FUTA (IRC section 3301) in the year the wages are paid, again computed at ......
- The perceived fairness of taxing social security
benefits: the effect of explanations based on different dimensions of
tax equity.
ABSTRACT In this study, we construct explanations for the taxation of social security benefits based on previously identified dimensions of fairness (exchange, horizontal, and vertical equity). We then conduct an experiment to examine whether providing senior citizen taxpayers with explanations increases the perceived fairness of taxing social security. The results ......