The beginning of a new year is a great time for employees to review their withholding and determine if any adjustments are necessary.
The IRS has released the 2020 Form W4 which has been redesigned to reduce complexity and increase the accurateness of the withholding system.
The 2020 W4 form should be used by new hires and any employees making withholding changes in 2020.
The IRS has announced the contribution limit for employees who participate in a 401K, 403B and most 457 plans will increase to $19,500 for the tax year 2020 (up from $19,000 in 2019).
The catch-up contribution limit for employees aged 50 and over who participate in these plans will increase to $6,500 (up from $6,000 in 2019).
Some phony charities will have names that are similar to well-known organizations, as well as websites that sound or look like those of legitimate organizations.
The IRS has a charity search feature, Tax Exempt Organization Search, that allows people to find legitimate, qualified charities to which donations may be tax-deductible.
If requested, charities can provide their Employer Identification Number (EIN) which can be used to verify their legitimacy through the IRS charity search tool.
Taxpayers change their names for several reasons (i.e. new marriage, recent adoption, divorce).
Regardless of the reason, taxpayers should notify the Social Security Administration (SSA) of any name changes as soon as possible. The IRS checks the SSA records to ensure that the names and social security numbers on the forms match.
Failing to notify the SSA of a name change can delay the processing of a taxpayer’s federal tax returns as well as any tax refunds.
The IRS suggests the following to safeguard your personal information:
• Do not routinely carry a Social Security card or other documents showing a Social Security number.
• Do not overshare personal information on social media. This includes information about past addresses, a new car, a new home and children.
• Keep old tax returns and tax records under lock and key.
• Safeguard electronic files by encrypting and properly disposing them.
• Shred tax documents before trashing.
This online tool by the IRS allows taxpayers to check the status of their refund anytime.
Taxpayers can start checking on the status of their return within 24 hours after the IRS received their e-filed return, or four weeks after they mail a paper return.
Starting 12/31/2018 through 12/30/2019, the basic minimum wage will be $11.10 per hour in most of New York State.
The minimum wage rate differ based on: the fast food industry, tipped workers, Long Island, Westchester County, large and small employers in New York City.
General Minimum Wage Rate Schedule
NYC – Large Employers (of 11 or more) $15.00
NYC – Small Employers (10 or less) $13.50
Long Island & Westchester $12.00
Remainder of New York State $11.10
For more information on the increased minimum wage specific to your industry, please click here.
Employers must post a Minimum Wage Information poster as well as various other posters in their place of work visible to all employees.
Beginning on Jan. 1, 2019, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
It is important to note that under the Tax Cuts and Jobs Act, taxpayers cannot claim a miscellaneous itemized deduction for unreimbursed employee travel expenses. Taxpayers also cannot claim a deduction for moving expenses, except members of the Armed Forces on active duty moving under orders to a permanent change of station.
For more details see Notice-2019-02.
As of January 1, 2019, the maximum wage base that is subject to the Social Security payroll tax will increase from $128,400 to $132,900.
There is no limit on earnings subjected to the Medicare payroll tax.
© 2024 Business of Your Business
Theme by Anders Noren — Up ↑
