New Medicare Tax on High Earners

The Patient Protection and Affordable Care Act, popularly known as ObamaCare, began its implementation of a new Medicare surtax on high earners on January 1, 2013. The tax will be assessed for individuals and married taxpayers who have modified adjusted gross income in excess of $200,000 and $250,000 respectively. Employers will withhold an additional amount from wages for those earning more than $200,000 from any one employer. This amount, unlike most Social Security and Medicare Tax, is not required to be matched by the employer. As we review the new regulations pertaining to the tax, we note that families with [...]

July 31st, 2013|Business Tax, Personal Tax|Comments Off on New Medicare Tax on High Earners

IRS’s “common law” test to determine independent contractor/employee status

It’s critical for an enterprise periodically to review the status of its workers and see if they are properly classified. An enterprise must withhold federal income tax, social security taxes, and federal unemployment taxes on wages it pays workers who are employees. It also may have to provide them with the same fringe benefits and retirement plan coverage available to its other employees. There may be state tax obligations as well. By contrast, these responsibilities don’t apply for workers who are independent contractors. The business simply cuts them a check for their services and sends them a Form 1099-MISC. [...]

June 28th, 2013|Business Tax|Comments Off on IRS’s “common law” test to determine independent contractor/employee status
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