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1040ez Tax Table

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1040ez Tax Table

1040ez tax table Index A Abortion, Abortion Acupuncture, Acupuncture Adopted child's medical expenses, Adopted child. 1040ez tax table AGI limitation, Introduction, Community property states. 1040ez tax table Alcoholism, Alcoholism Ambulances, Ambulance Archer MSAs Health coverage tax credit, How To Take the Credit Medical expenses paid for decedent from, Decedent Artificial limbs, Artificial Limb Artificial teeth, Artificial Teeth Aspirin, Nonprescription Drugs and Medicines Assistance (see Tax help) Assisted living homes, Nursing Home Athletic club dues, Health Club Dues Automobiles (see Cars) B Baby sitting, Baby Sitting, Childcare, and Nursing Services for a Normal, Healthy Baby Bandages, Bandages Basis Medical equipment or property (Worksheet D), Worksheet D. 1040ez tax table Adjusted Basis of Medical Equipment or Property Sold Birth control pills, Birth Control Pills Body scan, Body Scan Braille books and magazines, Braille Books and Magazines Breast pumps and supplies, Breast Pumps and Supplies Breast reconstruction surgery, Breast Reconstruction Surgery C Calculation of deduction, What If You Are Reimbursed for Medical Expenses You Did Not Deduct? Capital expenses, Capital Expenses Improvements to rented property, Improvements to property rented by a person with a disability. 1040ez tax table Operation and upkeep, Operation and upkeep. 1040ez tax table Worksheet A, Capital expense worksheet. 1040ez tax table Cars, Car Out-of-pocket expenses, Car expenses. 1040ez tax table Standard medical mileage rates, Car expenses. 1040ez tax table Child care, Baby Sitting, Childcare, and Nursing Services for a Normal, Healthy Baby Children's medical expenses Adopted child, Adopted child. 1040ez tax table Dependents, Dependent Chiropractor, Chiropractor Christian Scientist practitioner, Christian Science Practitioner Chronically ill persons, Chronically ill individual. 1040ez tax table COBRA assistance Recapture of COBRA premium assistance, Worksheet F. 1040ez tax table Recapture of COBRA Premium Assistance for Higher Income Taxpayers COBRA premium assistance, COBRA Premium Assistance Community property states, Community property states. 1040ez tax table Computer banks to track medical information, Medical Information Plan Contact lenses, Contact Lenses Controlled substances, Controlled Substances Cosmetic surgery, Cosmetic Surgery Credit (see Health coverage tax credit) Crutches, Crutches D Dancing lessons, Dancing Lessons Decedent's medical expenses, Decedent, What if you pay medical expenses of a deceased spouse or dependent? Deductible amount, How Much of the Expenses Can You Deduct? Deductible expenses, Whose Medical Expenses Can You Include?, X-ray Definition of medical expenses Doctor, What Are Medical Expenses? Physician, What Are Medical Expenses? Dental treatment, Dental Treatment Artificial teeth, Artificial Teeth Teeth whitening, Teeth Whitening Dentures, Artificial Teeth Dependent's medical expenses Adopted child, Adopted child. 1040ez tax table Multiple support agreement, Support claimed under a multiple support agreement. 1040ez tax table Qualifying child, Dependent Qualifying relative, Dependent Dependents Disabled dependent care, Disabled Dependent Care Expenses, Dependents with disabilities. 1040ez tax table Diagnostic devices, Diagnostic Devices Diaper services, Diaper Service Disabilities, persons with Dependent care expenses, Disabled Dependent Care Expenses, Dependents with disabilities. 1040ez tax table Improvements to rented property, Improvements to property rented by a person with a disability. 1040ez tax table Special education, Special Education Divorced taxpayers Medical expenses of child, Child of divorced or separated parents. 1040ez tax table Drug addiction, Drug Addiction Drugs (see Medicines) Dues Health club, Health Club Dues E Education, special, Special Education Electrolysis, Cosmetic Surgery Employer-sponsored health insurance plans, Employer-Sponsored Health Insurance Plan Employment taxes, Employment taxes. 1040ez tax table Excluded expenses Insurance premiums, Insurance Premiums You Cannot Include Eye surgery, Eye Surgery Eyeglasses, Eyeglasses F Fertility enhancement Eggs, temporary storage of, Fertility Enhancement Fertility, Fertility Enhancement In vitro fertilization, Fertility Enhancement Figuring the deduction, How Do You Figure and Report the Deduction on Your Tax Return? Final return for decedent Medical expenses paid, Decedent Flexible spending account, Flexible Spending Account Food (see Weight-loss programs) Form 1040 Health coverage tax credit, How To Take the Credit Self-employed persons, health insurance costs, Health Insurance Costs for Self-Employed Persons Form 1040, Schedule A Impairment-related work expenses, Where to report. 1040ez tax table Medical and dental expenses, Introduction, What Tax Form Do You Use? Self-employed persons, health insurance costs, Health Insurance Costs for Self-Employed Persons Form 1040, Schedule C Impairment-related work expenses, Where to report. 1040ez tax table Form 1040, Schedule C-EZ Impairment-related work expenses, Where to report. 1040ez tax table Form 1040, Schedule E Impairment-related work expenses, Where to report. 1040ez tax table Form 1040, Schedule F Impairment-related work expenses, Where to report. 1040ez tax table Form 1040NR Health coverage tax credit, How To Take the Credit Form 1040X Amended return, What Expenses Can You Include This Year? Deceased taxpayer, What if the decedent's return had been filed and the medical expenses were not included? Form 1099-H Self-employed persons, health insurance costs, Health Insurance Costs for Self-Employed Persons Form 2106 Impairment-related work expenses, Where to report. 1040ez tax table Form 2106-EZ Impairment-related work expenses, Where to report. 1040ez tax table Form 2555 Self-employed persons, health insurance costs, Health Insurance Costs for Self-Employed Persons Form 2555-EZ Self-employed persons, health insurance costs, Health Insurance Costs for Self-Employed Persons Form 8453 Health coverage tax credit, How To Take the Credit Form 8885 Health coverage tax credit, How To Take the Credit Self-employed persons, health insurance costs, Health Insurance Costs for Self-Employed Persons Founder's fee (see Lifetime care, advance payments) Free tax services, Free help with your tax return. 1040ez tax table Funeral expenses, Funeral Expenses Future medical care, Payments for future medical care. 1040ez tax table , Future Medical Care G Glasses, Eyeglasses Guide dog or other animal, Guide Dog or Other Service Animal H Hair Removal, Cosmetic Surgery Transplants, Cosmetic Surgery Wigs, Wig Health club dues, Health Club Dues Health coverage tax credit, Health Coverage Tax Credit Advanced payments, Monthly HCTC Alternative TAA recipient, Health Coverage Tax Credit Archer MSAs, How To Take the Credit Both spouses eligible, Qualifying Family Member Children of divorced parents, Health Coverage Tax Credit, Qualifying Family Member Eligible coverage month, Eligible Coverage Month Insurance that covers other individuals, Insurance that covers other individuals. 1040ez tax table Legally separated, Legally separated. 1040ez tax table Married persons filing separate returns, Qualifying Family Member Monthly HCTC, Monthly HCTC Nonqualified health insurance, Nonqualified Health Insurance Other specified coverage Benefits from the Veterans Administration, Other Specified Coverage Pension Benefit Guaranty Corporation (PBGC) recipient, Health Coverage Tax Credit Qualified health insurance, Qualified Health Insurance Qualifying family member, Qualifying Family Member Reimbursement credit, Monthly HCTC Reporting, How To Take the Credit State-qualified health insurance, State-qualified health insurance. 1040ez tax table TAA recipient, Health Coverage Tax Credit Yearly HCTC, Yearly HCTC Health Coverage Tax Credit Alternative TAA recipient, Who Can Take This Credit? PBGC pension payee, Who Can Take This Credit? TAA recipient, Who Can Take This Credit? Health institutes, Health Institute Health insurance Credit (see Health coverage tax credit) Employer-sponsored plan, Employer-Sponsored Health Insurance Plan Premiums Deductible, Insurance Premiums Nondeductible, Insurance Premiums You Cannot Include Paid by employer, Premiums paid by your employer. 1040ez tax table Paid by employer and you, Premiums paid by you and your employer. 1040ez tax table Paid by you, Premiums paid by you. 1040ez tax table Prepaid, Prepaid Insurance Premiums Unused sick leave used to pay, Unused Sick Leave Used To Pay Premiums Reimbursements (see Reimbursements) Self-employed persons, Health Insurance Costs for Self-Employed Persons Health maintenance organizations (HMOs), Health Maintenance Organization (HMO) Health reimbursement arrangements (HRAs), Health reimbursement arrangement (HRA). 1040ez tax table Health savings accounts (HSAs) Payments from, Health Savings Accounts Hearing aids, Hearing Aids Hearing-impaired persons Guide dog or other animal for, Guide Dog or Other Service Animal Help (see Tax help) HMOs (Health maintenance organizations), Health Maintenance Organization (HMO) Home care (see Nursing services) Home improvements (see Capital expenses:) Hospital services, Hospital Services Hotels, Lodging Household help, Household Help HRAs (Health reimbursement arrangements), Health reimbursement arrangement (HRA). 1040ez tax table I Illegal operations and treatments, Illegal Operations and Treatments Illegal substances, Controlled Substances Impairment-related work expenses, Workers' compensation. 1040ez tax table , Impairment-related expenses defined. 1040ez tax table Reporting of, Where to report. 1040ez tax table Insulin, Nonprescription Drugs and Medicines Insurance (see Health insurance) Intellectually and developmentally disabled persons Mentally retarded, Intellectually and Developmentally Disabled, Special Home for Special homes for, Intellectually and Developmentally Disabled, Special Home for L Laboratory fees, Laboratory Fees Lactation expenses (see Breast pumps and supplies) Laser eye surgery, Eye Surgery Lead-based paint removal, Lead-Based Paint Removal Learning disabilities, Special Education Legal fees, Legal Fees Lessons, dancing and swimming, Dancing Lessons Lifetime care Advance payments for, Lifetime Care—Advance Payments Lodging, Lodging, Trips (see also Trips) Long-term care, Long-Term Care Chronically ill individuals, Chronically ill individual. 1040ez tax table Maintenance and personal care services, Maintenance and personal care services. 1040ez tax table Qualified insurance contracts, Qualified Long-Term Care Insurance Contracts Qualified services, Qualified Long-Term Care Services M Maintenance and personal care services, Maintenance and personal care services. 1040ez tax table Maternity clothes, Maternity Clothes Meals, Meals, Weight-Loss Program (see also Weight-loss programs) Medical conferences, Medical Conferences Medical equipment or property Adjusted basis (Worksheet D), Worksheet D. 1040ez tax table Adjusted Basis of Medical Equipment or Property Sold Medical expense records, What Tax Form Do You Use? Medical information plans, Medical Information Plan Medical savings accounts (MSAs), Medical Savings Account (MSA) Medicare Medicare A, deductible expense, Medicare A Medicare B, deductible expense, Medicare B Medicare D, deductible expense, Medicare D Medicines, Medicines Imported, Imported medicines and drugs. 1040ez tax table , Medicines and Drugs From Other Countries Nonprescription drugs and medicines, Nonprescription Drugs and Medicines Missing children, photographs of in IRS publications, Reminders Multiple support agreement, Support claimed under a multiple support agreement. 1040ez tax table N Nondeductible expenses, What Expenses Are Not Includible?, Weight-Loss Program Nonprescription drugs and medicines, Nonprescription Drugs and Medicines Nursing homes, Nursing Home Nursing services, Nursing Services, Baby Sitting, Childcare, and Nursing Services for a Normal, Healthy Baby Chronically ill individuals, Chronically ill individual. 1040ez tax table Nutritional supplements Natural medicines, Nutritional Supplements O Operations, Operations Cosmetic surgery, Cosmetic Surgery Eye surgery, Eye Surgery Illegal operations and treatments, Illegal Operations and Treatments Optometrist, Optometrist Optometrist services, Eyeglasses Organ donors, Transplants Osteopath, Osteopath Oxygen, Oxygen P Paint removal, for lead-based, Lead-Based Paint Removal Parking fees and tolls, Car expenses. 1040ez tax table Personal injury damages, Damages for Personal Injuries Personal use items, Personal Use Items Photographs of missing children in IRS publications, Reminders Physical examination, Physical Examination Physical therapy, Therapy Plastic surgery, Cosmetic Surgery Pregnancy test kit, Pregnancy Test Kit Premiums (see Health insurance) Prepaid insurance premiums, Prepaid Insurance Premiums Prosthesis, Artificial Limb Psychiatric care, Psychiatric Care Psychoanalysis, Psychoanalysis Psychologists, Psychologist Publications (see Tax help) R Radial keratotomy, Eye Surgery Recordkeeping, What Tax Form Do You Use? Rehabilitation facilities, Nursing Home Reimbursements, How Do You Treat Reimbursements?, What If You Are Reimbursed for Medical Expenses You Did Not Deduct? Excess includible in income More than one policy (Worksheet C), More than one policy. 1040ez tax table One policy (Worksheet B), Worksheet B. 1040ez tax table Excess Reimbursement Includible in Income When You Have Only One Policy Excess may be taxable (Figure 1), What If Your Insurance Reimbursement Is More Than Your Medical Expenses? Health Reimbursement Arrangement (HRA), Health reimbursement arrangement (HRA). 1040ez tax table Insurance, Insurance Reimbursement, What If Your Insurance Reimbursement Is More Than Your Medical Expenses? Medical expenses not deducted, What If You Receive Insurance Reimbursement in a Later Year? More than one policy, More than one policy. 1040ez tax table Received in later year, What If You Are Reimbursed for Medical Expenses You Did Not Deduct? Rental property Improvements to, Improvements to property rented by a person with a disability. 1040ez tax table Reporting Health coverage tax credit, How To Take the Credit Impairment-related work expenses, Where to report. 1040ez tax table Medical and dental expenses, What If You Are Reimbursed for Medical Expenses You Did Not Deduct? Medical deduction (see Form 1040, Schedule A) Self-employed persons, health insurance costs, Health Insurance Costs for Self-Employed Persons S Sale of medical equipment or property, Sale of Medical Equipment or Property Adjusted basis (Worksheet D), Worksheet D. 1040ez tax table Adjusted Basis of Medical Equipment or Property Sold Schedules (see Form 1040) Seeing-eye dogs, Guide Dog or Other Service Animal Self-employed persons Health coverage tax credit, How To Take the Credit Health insurance costs, Health Insurance Costs for Self-Employed Persons Senior housing, Nursing Home Separate returns Community property states, Community property states. 1040ez tax table Medical and dental expenses, Separate returns. 1040ez tax table Separated taxpayers Health coverage tax credit, Legally separated. 1040ez tax table Medical expenses of child, Child of divorced or separated parents. 1040ez tax table Service animals, Guide Dog or Other Service Animal Sick leave Used to pay health insurance premiums, Unused Sick Leave Used To Pay Premiums Special education, Special Education Spouse's medical expenses, Spouse Deceased spouse, What if you pay medical expenses of a deceased spouse or dependent? Sterilization, Sterilization Stop-smoking programs, Stop-Smoking Programs Surgery (see Operations) Swimming lessons, Dancing Lessons T Tables and figures Medical equipment or property Adjusted basis (Worksheet D), Worksheet D. 1040ez tax table Adjusted Basis of Medical Equipment or Property Sold Reimbursements, excess includible in income More than one policy (Worksheet C), More than one policy. 1040ez tax table One policy (Worksheet B), Worksheet B. 1040ez tax table Excess Reimbursement Includible in Income When You Have Only One Policy Reimbursements, excess may be taxable (Figure 1), What If Your Insurance Reimbursement Is More Than Your Medical Expenses? Tax help, How To Get Tax Help Teeth Artificial, Artificial Teeth Dental treatment, Dental Treatment Whitening, Teeth Whitening Telephone, Telephone Television, Television Therapy, Therapy Transplants, Transplants Travel and transportation expenses, Transportation Car expenses, Car expenses. 1040ez tax table Includible expenses, You can include:, Transportation expenses you cannot include. 1040ez tax table Parking fees and tolls, Car expenses. 1040ez tax table Trips, Trips TTY/TDD information, How To Get Tax Help Tuition, Tuition V Vasectomy, Vasectomy Veterinary fees, Veterinary Fees Vision correction surgery, Eye Surgery Visually impaired persons Guide dog or other animal for, Guide Dog or Other Service Animal Vitamins or minerals, Nutritional Supplements Voluntary Employee's Beneficiary Association (VEBA) Qualified health insurance, Voluntary Employee's Beneficiary Association (VEBA) W Weight-loss programs, Weight-Loss Program, Weight-Loss Program What's new COBRA continuous coverage, What's New Health coverage tax credit, What's New Standard medical mileage rate, What's New Wheelchairs, Wheelchair Wigs, Wig Work expenses Disabled dependent care, Disabled Dependent Care Expenses Impairment-related, Impairment-Related Work Expenses Workers' compensation, Workers' compensation. 1040ez tax table Worksheets Capital expenses (Worksheet A), Capital expense worksheet. 1040ez tax table Medical equipment or property Adjusted basis (Worksheet D), Worksheet D. 1040ez tax table Adjusted Basis of Medical Equipment or Property Sold Reimbursements, excess includible in income More than one policy (Worksheet C), More than one policy. 1040ez tax table One policy (Worksheet B), Worksheet B. 1040ez tax table Excess Reimbursement Includible in Income When You Have Only One Policy X X-rays, X-ray Prev  Up     Home   More Online Publications
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Understanding Your CP284 Notice

We approved your Form 1128, Application to Adopt, Change, or Retain a Tax Year.


What you need to do

  • Timely file a short period annual return for the tax year ending that is shown on Form 1128.
  • Keep this notice for your records.

You may want to

Call 1-800-829-3676 (1-800-TAX-FORM) to order forms and publications or visit our website, www.irs.gov, to download them.


Answers to Common Questions

What is Form 1128?
When approved, this form allows a taxpayer to change the date on which they close their tax year. Partnerships, S corporations, personal service corporations (PSCs), or trusts may be required to file the form to adopt or retain a certain tax year.


Understanding your notice

Your notice may look different from the sample because the information contained in your notice is tailored to your situation.

Notice CP284, Page 1

Page Last Reviewed or Updated: 09-Dec-2013

Printable samples of this notice (PDF)

 

 

How to get help

  • Call the 1-800 number listed on the top right corner of your notice.
  • Authorize someone (e.g., accountant) to contact the IRS on your behalf using Form 2848.
  • See if you qualify for help from a Low Income Taxpayer Clinic.
     

The 1040ez Tax Table

1040ez tax table Publication 15 - Main Content Table of Contents 1. 1040ez tax table Employer Identification Number (EIN) 2. 1040ez tax table Who Are Employees?Relief provisions. 1040ez tax table Business Owned and Operated by Spouses 3. 1040ez tax table Family Employees 4. 1040ez tax table Employee's Social Security Number (SSN)Registering for SSNVS. 1040ez tax table 5. 1040ez tax table Wages and Other CompensationAccountable plan. 1040ez tax table Nonaccountable plan. 1040ez tax table Per diem or other fixed allowance. 1040ez tax table 50% test. 1040ez tax table Health Savings Accounts and medical savings accounts. 1040ez tax table Nontaxable fringe benefits. 1040ez tax table When fringe benefits are treated as paid. 1040ez tax table Valuation of fringe benefits. 1040ez tax table Withholding on fringe benefits. 1040ez tax table Depositing taxes on fringe benefits. 1040ez tax table 6. 1040ez tax table TipsOrdering rule. 1040ez tax table 7. 1040ez tax table Supplemental Wages 8. 1040ez tax table Payroll Period 9. 1040ez tax table Withholding From Employees' WagesIncome Tax Withholding Social Security and Medicare Taxes Part-Time Workers 10. 1040ez tax table Required Notice to Employees About the Earned Income Credit (EIC) 11. 1040ez tax table Depositing TaxesWhen To Deposit How To Deposit Deposit Penalties 12. 1040ez tax table Filing Form 941 or Form 944 13. 1040ez tax table Reporting Adjustments to Form 941 or Form 944Current Period Adjustments Prior Period Adjustments Wage Repayments 14. 1040ez tax table Federal Unemployment (FUTA) TaxSuccessor employer. 1040ez tax table Household employees. 1040ez tax table When to deposit. 1040ez tax table Household employees. 1040ez tax table Electronic filing by reporting agents. 1040ez tax table 16. 1040ez tax table How To Use the Income Tax Withholding TablesWage Bracket Method Percentage Method Alternative Methods of Income Tax Withholding How To Get Tax Help 1. 1040ez tax table Employer Identification Number (EIN) If you are required to report employment taxes or give tax statements to employees or annuitants, you need an EIN. 1040ez tax table The EIN is a nine-digit number the IRS issues. 1040ez tax table The digits are arranged as follows: 00-0000000. 1040ez tax table It is used to identify the tax accounts of employers and certain others who have no employees. 1040ez tax table Use your EIN on all of the items you send to the IRS and SSA. 1040ez tax table For more information, see Publication 1635, Employer Identification Number: Understanding Your EIN. 1040ez tax table If you do not have an EIN, you may apply for one online. 1040ez tax table Go to the IRS. 1040ez tax table gov and click on the Apply for an EIN Online link under Tools. 1040ez tax table You may also apply for an EIN by calling 1-800-829-4933, or you can fax or mail Form SS-4, Application for Employer Identification Number, to the IRS. 1040ez tax table Do not use an SSN in place of an EIN. 1040ez tax table You should have only one EIN. 1040ez tax table If you have more than one and are not sure which one to use, call 1-800-829-4933 or 1-800-829-4059 (TDD/TTY for persons who are deaf, hard of hearing, or have a speech disability). 1040ez tax table Give the numbers you have, the name and address to which each was assigned, and the address of your main place of business. 1040ez tax table The IRS will tell you which number to use. 1040ez tax table If you took over another employer's business (see Successor employer in section 9), do not use that employer's EIN. 1040ez tax table If you have applied for an EIN but do not have your EIN by the time a return is due, file a paper return and write “Applied For” and the date you applied for it in the space shown for the number. 1040ez tax table 2. 1040ez tax table Who Are Employees? Generally, employees are defined either under common law or under statutes for certain situations. 1040ez tax table See Publication 15-A for details on statutory employees and nonemployees. 1040ez tax table Employee status under common law. 1040ez tax table   Generally, a worker who performs services for you is your employee if you have the right to control what will be done and how it will be done. 1040ez tax table This is so even when you give the employee freedom of action. 1040ez tax table What matters is that you have the right to control the details of how the services are performed. 1040ez tax table See Publication 15-A for more information on how to determine whether an individual providing services is an independent contractor or an employee. 1040ez tax table   Generally, people in business for themselves are not employees. 1040ez tax table For example, doctors, lawyers, veterinarians, and others in an independent trade in which they offer their services to the public are usually not employees. 1040ez tax table However, if the business is incorporated, corporate officers who work in the business are employees of the corporation. 1040ez tax table   If an employer-employee relationship exists, it does not matter what it is called. 1040ez tax table The employee may be called an agent or independent contractor. 1040ez tax table It also does not matter how payments are measured or paid, what they are called, or if the employee works full or part time. 1040ez tax table Statutory employees. 1040ez tax table   If someone who works for you is not an employee under the common law rules discussed earlier, do not withhold federal income tax from his or her pay, unless backup withholding applies. 1040ez tax table Although the following persons may not be common law employees, they are considered employees by statute for social security, Medicare, and FUTA tax purposes under certain conditions. 1040ez tax table An agent (or commission) driver who delivers food, beverages (other than milk), laundry, or dry cleaning for someone else. 1040ez tax table A full-time life insurance salesperson who sells primarily for one company. 1040ez tax table A homeworker who works by guidelines of the person for whom the work is done, with materials furnished by and returned to that person or to someone that person designates. 1040ez tax table A traveling or city salesperson (other than an agent-driver or commission-driver) who works full time (except for sideline sales activities) for one firm or person getting orders from customers. 1040ez tax table The orders must be for merchandise for resale or supplies for use in the customer's business. 1040ez tax table The customers must be retailers, wholesalers, contractors, or operators of hotels, restaurants, or other businesses dealing with food or lodging. 1040ez tax table    Statutory nonemployees. 1040ez tax table   Direct sellers, qualified real estate agents, and certain companion sitters are, by law, considered nonemployees. 1040ez tax table They are generally treated as self-employed for all federal tax purposes, including income and employment taxes. 1040ez tax table H-2A agricultural workers. 1040ez tax table   On Form W-2, do not check box 13 (Statutory employee), as H-2A workers are not statutory employees. 1040ez tax table Treating employees as nonemployees. 1040ez tax table   You will generally be liable for social security and Medicare taxes and withheld income tax if you do not deduct and withhold these taxes because you treated an employee as a nonemployee. 1040ez tax table You may be able to calculate your liability using special section 3509 rates for the employee share of social security and Medicare taxes and the federal income tax withholding. 1040ez tax table The applicable rates depend on whether you filed required Forms 1099. 1040ez tax table You cannot recover the employee share of social security, or Medicare tax, or income tax withholding from the employee if the tax is paid under section 3509. 1040ez tax table You are liable for the income tax withholding regardless of whether the employee paid income tax on the wages. 1040ez tax table You continue to owe the full employer share of social security and Medicare taxes. 1040ez tax table The employee remains liable for the employee share of social security and Medicare taxes. 1040ez tax table See Internal Revenue Code section 3509 for details. 1040ez tax table Also see the Instructions for Form 941-X. 1040ez tax table   Section 3509 rates are not available if you intentionally disregard the requirement to withhold taxes from the employee or if you withheld income taxes but not social security or Medicare taxes. 1040ez tax table Section 3509 is not available for reclassifying statutory employees. 1040ez tax table See Statutory employees , earlier in this section. 1040ez tax table   If the employer issued required information returns, the section 3509 rates are: For social security taxes; employer rate of 6. 1040ez tax table 2% plus 20% of the employee rate (see the Instructions for Form 941-X). 1040ez tax table For Medicare taxes; employer rate of 1. 1040ez tax table 45% plus 20% of the employee rate of 1. 1040ez tax table 45%, for a total rate of 1. 1040ez tax table 74% of wages. 1040ez tax table For Additional Medicare Tax; 0. 1040ez tax table 18% (20% of the employee rate of 0. 1040ez tax table 9%) of wages subject to Additional Medicare Tax. 1040ez tax table For income tax withholding, the rate is 1. 1040ez tax table 5% of wages. 1040ez tax table   If the employer did not issue required information returns, the section 3509 rates are: For social security taxes; employer rate of 6. 1040ez tax table 2% plus 40% of the employee rate (see the Instructions for Form 941-X). 1040ez tax table For Medicare taxes; employer rate of 1. 1040ez tax table 45% plus 40% of the employee rate of 1. 1040ez tax table 45%, for a total rate of 2. 1040ez tax table 03% of wages. 1040ez tax table For Additional Medicare Tax; 0. 1040ez tax table 36% (40% of the employee rate of 0. 1040ez tax table 9%) of wages subject to Additional Medicare Tax. 1040ez tax table For income tax withholding, the rate is 3. 1040ez tax table 0% of wages. 1040ez tax table Relief provisions. 1040ez tax table   If you have a reasonable basis for not treating a worker as an employee, you may be relieved from having to pay employment taxes for that worker. 1040ez tax table To get this relief, you must file all required federal tax returns, including information returns, on a basis consistent with your treatment of the worker. 1040ez tax table You (or your predecessor) must not have treated any worker holding a substantially similar position as an employee for any periods beginning after 1977. 1040ez tax table See Publication 1976, Do You Qualify for Relief Under Section 530. 1040ez tax table IRS help. 1040ez tax table   If you want the IRS to determine whether a worker is an employee, file Form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding. 1040ez tax table Voluntary Classification Settlement Program (VCSP). 1040ez tax table   Employers who are currently treating their workers (or a class or group of workers) as independent contractors or other nonemployees and want to voluntarily reclassify their workers as employees for future tax periods may be eligible to participate in the VCSP if certain requirements are met. 1040ez tax table To apply, use Form 8952, Application for Voluntary Classification Settlement Program (VCSP). 1040ez tax table For more information visit IRS. 1040ez tax table gov and enter “VCSP” in the search box. 1040ez tax table Business Owned and Operated by Spouses If you and your spouse jointly own and operate a business and share in the profits and losses, you are partners in a partnership, whether or not you have a formal partnership agreement. 1040ez tax table See Publication 541, Partnerships, for more details. 1040ez tax table The partnership is considered the employer of any employees, and is liable for any employment taxes due on wages paid to its employees. 1040ez tax table Exception—Qualified joint venture. 1040ez tax table   For tax years beginning after December 31, 2006, the Small Business and Work Opportunity Tax Act of 2007 (Public Law 110-28) provides that a “qualified joint venture,” whose only members are spouses filing a joint income tax return, can elect not to be treated as a partnership for federal tax purposes. 1040ez tax table A qualified joint venture conducts a trade or business where: The only members of the joint venture are spouses who file a joint income tax return, Both spouses materially participate (see Material participation in the Instructions for Schedule C (Form 1040), line G) in the trade or business (mere joint ownership of property is not enough), Both spouses elect to not be treated as a partnership, and The business is co-owned by both spouses and is not held in the name of a state law entity such as a partnership or limited liability company (LLC). 1040ez tax table   To make the election, all items of income, gain, loss, deduction, and credit must be divided between the spouses, in accordance with each spouse's interest in the venture, and reported on separate Schedules C or F as sole proprietors. 1040ez tax table Each spouse must also file a separate Schedule SE to pay self-employment taxes, as applicable. 1040ez tax table   Spouses using the qualified joint venture rules are treated as sole proprietors for federal tax purposes and generally do not need an EIN. 1040ez tax table If employment taxes are owed by the qualified joint venture, either spouse may report and pay the employment taxes due on the wages paid to the employees using the EIN of that spouse's sole proprietorship. 1040ez tax table Generally, filing as a qualified joint venture will not increase the spouses' total tax owed on the joint income tax return. 1040ez tax table However, it gives each spouse credit for social security earnings on which retirement benefits are based and for Medicare coverage without filing a partnership return. 1040ez tax table    Note. 1040ez tax table If your spouse is your employee, not your partner, see One spouse employed by another in section 3. 1040ez tax table   For more information on qualified joint ventures, visit IRS. 1040ez tax table gov and enter “qualified joint venture” in the search box. 1040ez tax table Exception—Community income. 1040ez tax table   If you and your spouse wholly own an unincorporated business as community property under the community property laws of a state, foreign country, or U. 1040ez tax table S. 1040ez tax table possession, you can treat the business either as a sole proprietorship (of the spouse who carried on the business) or a partnership. 1040ez tax table You may still make an election to be taxed as a qualified joint venture instead of a partnership. 1040ez tax table See Exception—Qualified joint venture , earlier. 1040ez tax table 3. 1040ez tax table Family Employees Child employed by parents. 1040ez tax table   Payments for the services of a child under age 18 who works for his or her parent in a trade or business are not subject to social security and Medicare taxes if the trade or business is a sole proprietorship or a partnership in which each partner is a parent of the child. 1040ez tax table If these payments are for work other than in a trade or business, such as domestic work in the parent's private home, they are not subject to social security and Medicare taxes until the child reaches age 21. 1040ez tax table However, see Covered services of a child or spouse , later in this section. 1040ez tax table Payments for the services of a child under age 21 who works for his or her parent, whether or not in a trade or business, are not subject to FUTA tax. 1040ez tax table Payments for the services of a child of any age who works for his or her parent are generally subject to income tax withholding unless the payments are for domestic work in the parent's home, or unless the payments are for work other than in a trade or business and are less than $50 in the quarter or the child is not regularly employed to do such work. 1040ez tax table One spouse employed by another. 1040ez tax table   The wages for the services of an individual who works for his or her spouse in a trade or business are subject to income tax withholding and social security and Medicare taxes, but not to FUTA tax. 1040ez tax table However, the payments for services of one spouse employed by another in other than a trade or business, such as domestic service in a private home, are not subject to social security, Medicare, and FUTA taxes. 1040ez tax table Covered services of a child or spouse. 1040ez tax table   The wages for the services of a child or spouse are subject to income tax withholding as well as social security, Medicare, and FUTA taxes if he or she works for: A corporation, even if it is controlled by the child's parent or the individual's spouse; A partnership, even if the child's parent is a partner, unless each partner is a parent of the child; A partnership, even if the individual's spouse is a partner; or An estate, even if it is the estate of a deceased parent. 1040ez tax table Parent employed by son or daughter. 1040ez tax table   When the employer is a son or daughter employing his or her parent the following rules apply. 1040ez tax table Payments for the services of a parent in the son’s or daughter’s (the employer’s) trade or business are subject to income tax withholding and social security and Medicare taxes. 1040ez tax table Payments for the services of a parent not in the son’s or daughter’s (the employer’s) trade or business are generally not subject to social security and Medicare taxes. 1040ez tax table    Social security and Medicare taxes do apply to payments made to a parent for domestic services if all of the following apply: The parent is employed by his or her son or daughter; The son or daughter (the employer) has a child or stepchild living in the home; The son or daughter (the employer) is a widow or widower, divorced, or living with a spouse who, because of a mental or physical condition, cannot care for the child or stepchild for at least 4 continuous weeks in a calendar quarter; and The child or stepchild is either under age 18 or requires the personal care of an adult for at least 4 continuous weeks in a calendar quarter due to a mental or physical condition. 1040ez tax table   Payments made to a parent employed by his or her child are not subject to FUTA tax, regardless of the type of services provided. 1040ez tax table 4. 1040ez tax table Employee's Social Security Number (SSN) You are required to get each employee's name and SSN and to enter them on Form W-2. 1040ez tax table This requirement also applies to resident and nonresident alien employees. 1040ez tax table You should ask your employee to show you his or her social security card. 1040ez tax table The employee may show the card if it is available. 1040ez tax table Do not accept a social security card that says “Not valid for employment. 1040ez tax table ” A social security number issued with this legend does not permit employment. 1040ez tax table You may, but are not required to, photocopy the social security card if the employee provides it. 1040ez tax table If you do not provide the correct employee name and SSN on Form W-2, you may owe a penalty unless you have reasonable cause. 1040ez tax table See Publication 1586, Reasonable Cause Regulations & Requirements for Missing and Incorrect Name/TINs, for information on the requirement to solicit the employee's SSN. 1040ez tax table Applying for a social security card. 1040ez tax table   Any employee who is legally eligible to work in the United States and does not have a social security card can get one by completing Form SS-5, Application for a Social Security Card, and submitting the necessary documentation. 1040ez tax table You can get Form SS-5 at SSA offices, by calling 1-800-772-1213, or from the SSA website at www. 1040ez tax table socialsecurity. 1040ez tax table gov/online/ss-5. 1040ez tax table html. 1040ez tax table The employee must complete and sign Form SS-5; it cannot be filed by the employer. 1040ez tax table You may be asked to supply a letter to accompany Form SS-5 if the employee has exceeded his or her yearly or lifetime limit for the number of replacement cards allowed. 1040ez tax table Applying for a social security number. 1040ez tax table   If you file Form W-2 on paper and your employee applied for an SSN but does not have one when you must file Form W-2, enter “Applied For” on the form. 1040ez tax table If you are filing electronically, enter all zeros (000-00-000) in the social security number field. 1040ez tax table When the employee receives the SSN, file Copy A of Form W-2c, Corrected Wage and Tax Statement, with the SSA to show the employee's SSN. 1040ez tax table Furnish copies B, C, and 2 of Form W-2c to the employee. 1040ez tax table Up to 25 Forms W-2c for each Form W-3c, Transmittal of Corrected Wage and Tax Statements, may now be filed per session over the Internet, with no limit on the number of sessions. 1040ez tax table For more information, visit the SSA's Employer W-2 Filing Instructions & Information webpage at www. 1040ez tax table socialsecurity. 1040ez tax table gov/employer. 1040ez tax table Advise your employee to correct the SSN on his or her original Form W-2. 1040ez tax table Correctly record the employee's name and SSN. 1040ez tax table   Record the name and number of each employee as they are shown on the employee's social security card. 1040ez tax table If the employee's name is not correct as shown on the card (for example, because of marriage or divorce), the employee should request a corrected card from the SSA. 1040ez tax table Continue to report the employee's wages under the old name until the employee shows you an updated social security card with the new name. 1040ez tax table If the SSA issues the employee a replacement card after a name change, or a new card with a different social security number after a change in alien work status, file a Form W-2c to correct the name/SSN reported for the most recently filed Form W-2. 1040ez tax table It is not necessary to correct other years if the previous name and number were used for years before the most recent Form W-2. 1040ez tax table IRS individual taxpayer identification numbers (ITINs) for aliens. 1040ez tax table   Do not accept an ITIN in place of an SSN for employee identification or for work. 1040ez tax table An ITIN is only available to resident and nonresident aliens who are not eligible for U. 1040ez tax table S. 1040ez tax table employment and need identification for other tax purposes. 1040ez tax table You can identify an ITIN because it is a nine-digit number, beginning with the number “9” with either a “7” or “8” as the fourth digit and is formatted like an SSN (for example, 9NN-7N-NNNN). 1040ez tax table    An individual with an ITIN who later becomes eligible to work in the United States must obtain an SSN. 1040ez tax table If the individual is currently eligible to work in the United States, instruct the individual to apply for an SSN and follow the instructions under Applying for a social security number, earlier. 1040ez tax table Do not use an ITIN in place of an SSN on Form W-2. 1040ez tax table Verification of social security numbers. 1040ez tax table   Employers and authorized reporting agents can use the Social Security Number Verification Service (SSNVS) to instantly verify up to 10 names and SSNs (per screen) at a time, or submit an electronic file of up to 250,000 names and SSNs and usually receive the results the next business day. 1040ez tax table Visit www. 1040ez tax table socialsecurity. 1040ez tax table gov/employer/ssnv. 1040ez tax table htm for more information. 1040ez tax table Registering for SSNVS. 1040ez tax table   You must register online and receive authorization from your employer to use SSNVS. 1040ez tax table To register, visit SSA's website at www. 1040ez tax table ssa. 1040ez tax table gov/employer and click on the Business Services Online link. 1040ez tax table Follow the registration instructions to obtain a user identification (ID) and password. 1040ez tax table You will need to provide the following information about yourself and your company. 1040ez tax table Name. 1040ez tax table SSN. 1040ez tax table Date of birth. 1040ez tax table Type of employer. 1040ez tax table EIN. 1040ez tax table Company name, address, and telephone number. 1040ez tax table Email address. 1040ez tax table   When you have completed the online registration process, SSA will mail a one-time activation code to your employer. 1040ez tax table You must enter the activation code online to use SSNVS. 1040ez tax table 5. 1040ez tax table Wages and Other Compensation Wages subject to federal employment taxes generally include all pay you give to an employee for services performed. 1040ez tax table The pay may be in cash or in other forms. 1040ez tax table It includes salaries, vacation allowances, bonuses, commissions, and fringe benefits. 1040ez tax table It does not matter how you measure or make the payments. 1040ez tax table Amounts an employer pays as a bonus for signing or ratifying a contract in connection with the establishment of an employer-employee relationship and an amount paid to an employee for cancellation of an employment contract and relinquishment of contract rights are wages subject to social security, Medicare, and FUTA taxes and income tax withholding. 1040ez tax table Also, compensation paid to a former employee for services performed while still employed is wages subject to employment taxes. 1040ez tax table More information. 1040ez tax table   See section 6 for a discussion of tips and section 7 for a discussion of supplemental wages. 1040ez tax table Also, see section 15 for exceptions to the general rules for wages. 1040ez tax table Publication 15-A provides additional information on wages, including nonqualified deferred compensation, and other compensation. 1040ez tax table Publication 15-B provides information on other forms of compensation, including: Accident and health benefits, Achievement awards, Adoption assistance, Athletic facilities, De minimis (minimal) benefits, Dependent care assistance, Educational assistance, Employee discounts, Employee stock options, Employer-provided cell phones, Group-term life insurance coverage, Health Savings Accounts, Lodging on your business premises, Meals, Moving expense reimbursements, No-additional-cost services, Retirement planning services, Transportation (commuting) benefits, Tuition reduction, and Working condition benefits. 1040ez tax table Employee business expense reimbursements. 1040ez tax table   A reimbursement or allowance arrangement is a system by which you pay the advances, reimbursements, and charges for your employees' business expenses. 1040ez tax table How you report a reimbursement or allowance amount depends on whether you have an accountable or a nonaccountable plan. 1040ez tax table If a single payment includes both wages and an expense reimbursement, you must specify the amount of the reimbursement. 1040ez tax table   These rules apply to all ordinary and necessary employee business expenses that would otherwise qualify for a deduction by the employee. 1040ez tax table Accountable plan. 1040ez tax table   To be an accountable plan, your reimbursement or allowance arrangement must require your employees to meet all three of the following rules. 1040ez tax table They must have paid or incurred deductible expenses while performing services as your employees. 1040ez tax table The reimbursement or advance must be paid for the expense and must not be an amount that would have otherwise been paid by the employee. 1040ez tax table They must substantiate these expenses to you within a reasonable period of time. 1040ez tax table They must return any amounts in excess of substantiated expenses within a reasonable period of time. 1040ez tax table   Amounts paid under an accountable plan are not wages and are not subject to income, social security, Medicare, and FUTA taxes. 1040ez tax table   If the expenses covered by this arrangement are not substantiated (or amounts in excess of substantiated expenses are not returned within a reasonable period of time), the amount paid under the arrangement in excess of the substantiated expenses is treated as paid under a nonaccountable plan. 1040ez tax table This amount is subject to income, social security, Medicare, and FUTA taxes for the first payroll period following the end of the reasonable period of time. 1040ez tax table   A reasonable period of time depends on the facts and circumstances. 1040ez tax table Generally, it is considered reasonable if your employees receive their advance within 30 days of the time they incur the expenses, adequately account for the expenses within 60 days after the expenses were paid or incurred, and return any amounts in excess of expenses within 120 days after the expenses were paid or incurred. 1040ez tax table Also, it is considered reasonable if you give your employees a periodic statement (at least quarterly) that asks them to either return or adequately account for outstanding amounts and they do so within 120 days. 1040ez tax table Nonaccountable plan. 1040ez tax table   Payments to your employee for travel and other necessary expenses of your business under a nonaccountable plan are wages and are treated as supplemental wages and subject to income, social security, Medicare, and FUTA taxes. 1040ez tax table Your payments are treated as paid under a nonaccountable plan if: Your employee is not required to or does not substantiate timely those expenses to you with receipts or other documentation, You advance an amount to your employee for business expenses and your employee is not required to or does not return timely any amount he or she does not use for business expenses, You advance or pay an amount to your employee regardless of whether you reasonably expect the employee to have business expenses related to your business, or You pay an amount as a reimbursement you would have otherwise paid as wages. 1040ez tax table   See section 7 for more information on supplemental wages. 1040ez tax table Per diem or other fixed allowance. 1040ez tax table   You may reimburse your employees by travel days, miles, or some other fixed allowance under the applicable revenue procedure. 1040ez tax table In these cases, your employee is considered to have accounted to you if your reimbursement does not exceed rates established by the Federal Government. 1040ez tax table The 2013 standard mileage rate for auto expenses was 56. 1040ez tax table 5 cents per mile. 1040ez tax table The rate for 2014 is 56 cents per mile. 1040ez tax table   The government per diem rates for meals and lodging in the continental United States are listed in Publication 1542, Per Diem Rates. 1040ez tax table Other than the amount of these expenses, your employees' business expenses must be substantiated (for example, the business purpose of the travel or the number of business miles driven). 1040ez tax table   If the per diem or allowance paid exceeds the amounts substantiated, you must report the excess amount as wages. 1040ez tax table This excess amount is subject to income tax withholding and payment of social security, Medicare, and FUTA taxes. 1040ez tax table Show the amount equal to the substantiated amount (for example, the nontaxable portion) in box 12 of Form W-2 using code “L. 1040ez tax table ” Wages not paid in money. 1040ez tax table   If in the course of your trade or business you pay your employees in a medium that is neither cash nor a readily negotiable instrument, such as a check, you are said to pay them “in kind. 1040ez tax table ” Payments in kind may be in the form of goods, lodging, food, clothing, or services. 1040ez tax table Generally, the fair market value of such payments at the time they are provided is subject to federal income tax withholding and social security, Medicare, and FUTA taxes. 1040ez tax table   However, noncash payments for household work, agricultural labor, and service not in the employer's trade or business are exempt from social security, Medicare, and FUTA taxes. 1040ez tax table Withhold income tax on these payments only if you and the employee agree to do so. 1040ez tax table Nonetheless, noncash payments for agricultural labor, such as commodity wages, are treated as cash payments subject to employment taxes if the substance of the transaction is a cash payment. 1040ez tax table Moving expenses. 1040ez tax table   Reimbursed and employer-paid qualified moving expenses (those that would otherwise be deductible by the employee) paid under an accountable plan are not includible in an employee's income unless you have knowledge the employee deducted the expenses in a prior year. 1040ez tax table Reimbursed and employer-paid nonqualified moving expenses are includible in income and are subject to employment taxes and income tax withholding. 1040ez tax table For more information on moving expenses, see Publication 521, Moving Expenses. 1040ez tax table Meals and lodging. 1040ez tax table   The value of meals is not taxable income and is not subject to income tax withholding and social security, Medicare, and FUTA taxes if the meals are furnished for the employer's convenience and on the employer's premises. 1040ez tax table The value of lodging is not subject to income tax withholding and social security, Medicare, and FUTA taxes if the lodging is furnished for the employer's convenience, on the employer's premises, and as a condition of employment. 1040ez tax table    “For the convenience of the employer” means you have a substantial business reason for providing the meals and lodging other than to provide additional compensation to the employee. 1040ez tax table For example, meals you provide at the place of work so that an employee is available for emergencies during his or her lunch period are generally considered to be for your convenience. 1040ez tax table   However, whether meals or lodging are provided for the convenience of the employer depends on all of the facts and circumstances. 1040ez tax table A written statement that the meals or lodging are for your convenience is not sufficient. 1040ez tax table 50% test. 1040ez tax table   If over 50% of the employees who are provided meals on an employer's business premises receive these meals for the convenience of the employer, all meals provided on the premises are treated as furnished for the convenience of the employer. 1040ez tax table If this 50% test is met, the value of the meals is excludable from income for all employees and is not subject to federal income tax withholding or employment taxes. 1040ez tax table For more information, see Publication 15-B. 1040ez tax table Health insurance plans. 1040ez tax table   If you pay the cost of an accident or health insurance plan for your employees, including an employee's spouse and dependents, your payments are not wages and are not subject to social security, Medicare, and FUTA taxes, or federal income tax withholding. 1040ez tax table Generally, this exclusion also applies to qualified long-term care insurance contracts. 1040ez tax table However, for income tax withholding, the value of health insurance benefits must be included in the wages of S corporation employees who own more than 2% of the S corporation (2% shareholders). 1040ez tax table For social security, Medicare, and FUTA taxes, the health insurance benefits are excluded from the wages only for employees and their dependents or for a class or classes of employees and their dependents. 1040ez tax table See Announcement 92-16 for more information. 1040ez tax table You can find Announcement 92-16 on page 53 of Internal Revenue Bulletin 1992-5. 1040ez tax table Health Savings Accounts and medical savings accounts. 1040ez tax table   Your contributions to an employee's Health Savings Account (HSA) or Archer medical savings account (MSA) are not subject to social security, Medicare, or FUTA taxes, or federal income tax withholding if it is reasonable to believe at the time of payment of the contributions they will be excludable from the income of the employee. 1040ez tax table To the extent it is not reasonable to believe they will be excludable, your contributions are subject to these taxes. 1040ez tax table Employee contributions to their HSAs or MSAs through a payroll deduction plan must be included in wages and are subject to social security, Medicare, and FUTA taxes and income tax withholding. 1040ez tax table However, HSA contributions made under a salary reduction arrangement in a section 125 cafeteria plan are not wages and are not subject to employment taxes or withholding. 1040ez tax table For more information, see the Instructions for Form 8889, Health Savings Accounts (HSAs). 1040ez tax table Medical care reimbursements. 1040ez tax table   Generally, medical care reimbursements paid for an employee under an employer's self-insured medical reimbursement plan are not wages and are not subject to social security, Medicare, and FUTA taxes, or income tax withholding. 1040ez tax table See Publication 15-B for an exception for highly compensated employees. 1040ez tax table Differential wage payments. 1040ez tax table   Differential wage payments are any payments made by an employer to an individual for a period during which the individual is performing service in the uniformed services while on active duty for a period of more than 30 days and represent all or a portion of the wages the individual would have received from the employer if the individual were performing services for the employer. 1040ez tax table   Differential wage payments are wages for income tax withholding, but are not subject to social security, Medicare, or FUTA taxes. 1040ez tax table Employers should report differential wage payments in box 1 of Form W-2. 1040ez tax table For more information about the tax treatment of differential wage payments, visit IRS. 1040ez tax table gov and enter “employees in a combat zone” in the search box. 1040ez tax table Fringe benefits. 1040ez tax table   You generally must include fringe benefits in an employee's gross income (but see Nontaxable fringe benefits next). 1040ez tax table The benefits are subject to income tax withholding and employment taxes. 1040ez tax table Fringe benefits include cars you provide, flights on aircraft you provide, free or discounted commercial flights, vacations, discounts on property or services, memberships in country clubs or other social clubs, and tickets to entertainment or sporting events. 1040ez tax table In general, the amount you must include is the amount by which the fair market value of the benefits is more than the sum of what the employee paid for it plus any amount the law excludes. 1040ez tax table There are other special rules you and your employees may use to value certain fringe benefits. 1040ez tax table See Publication 15-B for more information. 1040ez tax table Nontaxable fringe benefits. 1040ez tax table   Some fringe benefits are not taxable (or are minimally taxable) if certain conditions are met. 1040ez tax table See Publication 15-B for details. 1040ez tax table The following are some examples of nontaxable fringe benefits. 1040ez tax table Services provided to your employees at no additional cost to you. 1040ez tax table Qualified employee discounts. 1040ez tax table Working condition fringes that are property or services the employee could deduct as a business expense if he or she had paid for it. 1040ez tax table Examples include a company car for business use and subscriptions to business magazines. 1040ez tax table Certain minimal value fringes (including an occasional cab ride when an employee must work overtime and meals you provide at eating places you run for your employees if the meals are not furnished at below cost). 1040ez tax table Qualified transportation fringes subject to specified conditions and dollar limitations (including transportation in a commuter highway vehicle, any transit pass, and qualified parking). 1040ez tax table Qualified moving expense reimbursement. 1040ez tax table See Moving expenses , earlier in this section, for details. 1040ez tax table The use of on-premises athletic facilities, if substantially all of the use is by employees, their spouses, and their dependent children. 1040ez tax table Qualified tuition reduction an educational organization provides to its employees for education. 1040ez tax table For more information, see Publication 970, Tax Benefits for Education. 1040ez tax table Employer-provided cell phones provided primarily for a noncompensatory business reason. 1040ez tax table   However, do not exclude the following fringe benefits from the income of highly compensated employees unless the benefit is available to other employees on a nondiscriminatory basis. 1040ez tax table No-additional-cost services. 1040ez tax table Qualified employee discounts. 1040ez tax table Meals provided at an employer operated eating facility. 1040ez tax table Reduced tuition for education. 1040ez tax table  For more information, including the definition of a highly compensated employee, see Publication 15-B. 1040ez tax table When fringe benefits are treated as paid. 1040ez tax table   You may choose to treat certain noncash fringe benefits as paid by the pay period, by the quarter, or on any other basis you choose as long as you treat the benefits as paid at least once a year. 1040ez tax table You do not have to make a formal choice of payment dates or notify the IRS of the dates you choose. 1040ez tax table You do not have to make this choice for all employees. 1040ez tax table You may change methods as often as you like, as long as you treat all benefits provided in a calendar year as paid by December 31 of the calendar year. 1040ez tax table See Publication 15-B for more information, including a discussion of the special accounting rule for fringe benefits provided during November and December. 1040ez tax table Valuation of fringe benefits. 1040ez tax table   Generally, you must determine the value of fringe benefits no later than January 31 of the next year. 1040ez tax table Before January 31, you may reasonably estimate the value of the fringe benefits for purposes of withholding and depositing on time. 1040ez tax table Withholding on fringe benefits. 1040ez tax table   You may add the value of fringe benefits to regular wages for a payroll period and figure withholding taxes on the total, or you may withhold federal income tax on the value of the fringe benefits at the optional flat 25% supplemental wage rate. 1040ez tax table However, see Withholding on supplemental wages when an employee receives more than $1 million of supplemental wages during the calendar year in section 7. 1040ez tax table   You may choose not to withhold income tax on the value of an employee's personal use of a vehicle you provide. 1040ez tax table You must, however, withhold social security and Medicare taxes on the use of the vehicle. 1040ez tax table See Publication 15-B for more information on this election. 1040ez tax table Depositing taxes on fringe benefits. 1040ez tax table   Once you choose when fringe benefits are paid, you must deposit taxes in the same deposit period you treat the fringe benefits as paid. 1040ez tax table To avoid a penalty, deposit the taxes following the general deposit rules for that deposit period. 1040ez tax table   If you determine by January 31 you overestimated the value of a fringe benefit at the time you withheld and deposited for it, you may claim a refund for the overpayment or have it applied to your next employment tax return. 1040ez tax table See Valuation of fringe benefits , earlier. 1040ez tax table If you underestimated the value and deposited too little, you may be subject to a failure-to-deposit penalty. 1040ez tax table See section 11 for information on deposit penalties. 1040ez tax table   If you deposited the required amount of taxes but withheld a lesser amount from the employee, you can recover from the employee the social security, Medicare, or income taxes you deposited on his or her behalf, and included in the employee's Form W-2. 1040ez tax table However, you must recover the income taxes before April 1 of the following year. 1040ez tax table Sick pay. 1040ez tax table   In general, sick pay is any amount you pay under a plan to an employee who is unable to work because of sickness or injury. 1040ez tax table These amounts are sometimes paid by a third party, such as an insurance company or an employees' trust. 1040ez tax table In either case, these payments are subject to social security, Medicare, and FUTA taxes. 1040ez tax table Sick pay becomes exempt from these taxes after the end of 6 calendar months after the calendar month the employee last worked for the employer. 1040ez tax table The payments are always subject to federal income tax. 1040ez tax table See Publication 15-A for more information. 1040ez tax table 6. 1040ez tax table Tips Tips your employee receives from customers are generally subject to withholding. 1040ez tax table Your employee must report cash tips to you by the 10th of the month after the month the tips are received. 1040ez tax table The report should include tips you paid over to the employee for charge customers, tips the employee received directly from customers, and tips received from other employees under any tip-sharing arrangement. 1040ez tax table Both directly and indirectly tipped employees must report tips to you. 1040ez tax table No report is required for months when tips are less than $20. 1040ez tax table Your employee reports the tips on Form 4070, Employee's Report of Tips to Employer, or on a similar statement. 1040ez tax table The statement must be signed by the employee and must include: The employee's name, address, and SSN, Your name and address, The month or period the report covers, and The total of tips received during the month or period. 1040ez tax table Both Forms 4070 and 4070-A, Employee's Daily Record of Tips, are included in Publication 1244, Employee's Daily Record of Tips and Report to Employer. 1040ez tax table You are permitted to establish a system for electronic tip reporting by employees. 1040ez tax table See Regulations section 31. 1040ez tax table 6053-1(d). 1040ez tax table Collecting taxes on tips. 1040ez tax table   You must collect income tax, employee social security tax, and employee Medicare tax on the employee's tips. 1040ez tax table The withholding rules for withholding an employee's share of Medicare tax on tips also apply to withholding the Additional Medicare Tax once wages and tips exceed $200,000 in the calendar year. 1040ez tax table If an employee reports to you in writing $20 or more of tips in a month, the tips are also subject to FUTA tax. 1040ez tax table   You can collect these taxes from the employee's wages or from other funds he or she makes available. 1040ez tax table See Tips treated as supplemental wages in section 7 for more information. 1040ez tax table Stop collecting the employee social security tax when his or her wages and tips for tax year 2014 reach $117,000; collect the income and employee Medicare taxes for the whole year on all wages and tips. 1040ez tax table You are responsible for the employer social security tax on wages and tips until the wages (including tips) reach the limit. 1040ez tax table You are responsible for the employer Medicare tax for the whole year on all wages and tips. 1040ez tax table File Form 941 or Form 944 to report withholding and employment taxes on tips. 1040ez tax table Ordering rule. 1040ez tax table   If, by the 10th of the month after the month for which you received an employee's report on tips, you do not have enough employee funds available to deduct the employee tax, you no longer have to collect it. 1040ez tax table If there are not enough funds available, withhold taxes in the following order. 1040ez tax table Withhold on regular wages and other compensation. 1040ez tax table Withhold social security and Medicare taxes on tips. 1040ez tax table Withhold income tax on tips. 1040ez tax table Reporting tips. 1040ez tax table   Report tips and any collected and uncollected social security and Medicare taxes on Form W-2 and on Form 941, lines 5b, 5c, and 5d (Form 944, lines 4b, 4c, and 4d). 1040ez tax table Report an adjustment on Form 941, line 9 (Form 944, line 6), for the uncollected social security and Medicare taxes. 1040ez tax table Enter the amount of uncollected social security tax and Medicare tax on Form W-2, box 12, with codes “A” and “B. 1040ez tax table ” Do not include any uncollected Additional Medicare Tax in box 12 of Form W-2. 1040ez tax table See section 13 and the General Instructions for Forms W-2 and W-3. 1040ez tax table   Revenue Ruling 2012-18 provides guidance for employers regarding social security and Medicare taxes imposed on tips, including information on the reporting of the employer share of social security and Medicare taxes under section 3121(q), the difference between tips and service charges, and the section 45B credit. 1040ez tax table See Revenue Ruling 2012-18, 2012-26 I. 1040ez tax table R. 1040ez tax table B. 1040ez tax table 1032, available at www. 1040ez tax table irs. 1040ez tax table gov/irb/2012-26_IRB/ar07. 1040ez tax table html. 1040ez tax table Allocated tips. 1040ez tax table   If you operate a large food or beverage establishment, you must report allocated tips under certain circumstances. 1040ez tax table However, do not withhold income, social security, or Medicare taxes on allocated tips. 1040ez tax table   A large food or beverage establishment is one that provides food or beverages for consumption on the premises, where tipping is customary, and where there were normally more than 10 employees on a typical business day during the preceding year. 1040ez tax table   The tips may be allocated by one of three methods—hours worked, gross receipts, or good faith agreement. 1040ez tax table For information about these allocation methods, including the requirement to file Forms 8027 electronically if 250 or more forms are filed, see the Instructions for Form 8027. 1040ez tax table For information on filing Form 8027 electronically with the IRS, see Publication 1239. 1040ez tax table Tip Rate Determination and Education Program. 1040ez tax table   Employers may participate in the Tip Rate Determination and Education Program. 1040ez tax table The program primarily consists of two voluntary agreements developed to improve tip income reporting by helping taxpayers to understand and meet their tip reporting responsibilities. 1040ez tax table The two agreements are the Tip Rate Determination Agreement (TRDA) and the Tip Reporting Alternative Commitment (TRAC). 1040ez tax table A tip agreement, the Gaming Industry Tip Compliance Agreement (GITCA), is available for the gaming (casino) industry. 1040ez tax table To get more information about TRDA and TRAC agreements, see Publication 3144, Tips on Tips. 1040ez tax table Additionally, visit IRS. 1040ez tax table gov and enter “MSU tips” in the search box to get more information about GITCA, TRDA, or TRAC agreements. 1040ez tax table 7. 1040ez tax table Supplemental Wages Supplemental wages are wage payments to an employee that are not regular wages. 1040ez tax table They include, but are not limited to, bonuses, commissions, overtime pay, payments for accumulated sick leave, severance pay, awards, prizes, back pay, retroactive pay increases, and payments for nondeductible moving expenses. 1040ez tax table Other payments subject to the supplemental wage rules include taxable fringe benefits and expense allowances paid under a nonaccountable plan. 1040ez tax table How you withhold on supplemental wages depends on whether the supplemental payment is identified as a separate payment from regular wages. 1040ez tax table See Regulations section 31. 1040ez tax table 3402(g)-1 for additional guidance for wages paid after January 1, 2007. 1040ez tax table Also see Revenue Ruling 2008-29, 2008-24 I. 1040ez tax table R. 1040ez tax table B. 1040ez tax table 1149, available at www. 1040ez tax table irs. 1040ez tax table gov/irb/2008-24_IRB/ar08. 1040ez tax table html. 1040ez tax table Withholding on supplemental wages when an employee receives more than $1 million of supplemental wages from you during the calendar year. 1040ez tax table   Special rules apply to the extent supplemental wages paid to any one employee during the calendar year exceed $1 million. 1040ez tax table If a supplemental wage payment, together with other supplemental wage payments made to the employee during the calendar year, exceeds $1 million, the excess is subject to withholding at 39. 1040ez tax table 6% (or the highest rate of income tax for the year). 1040ez tax table Withhold using the 39. 1040ez tax table 6% rate without regard to the employee's Form W-4. 1040ez tax table In determining supplemental wages paid to the employee during the year, include payments from all businesses under common control. 1040ez tax table For more information, see Treasury Decision 9276, 2006-37 I. 1040ez tax table R. 1040ez tax table B. 1040ez tax table 423, available at www. 1040ez tax table irs. 1040ez tax table gov/irb/2006-37_IRB/ar09. 1040ez tax table html. 1040ez tax table Withholding on supplemental wage payments to an employee who does not receive $1 million of supplemental wages during the calendar year. 1040ez tax table   If the supplemental wages paid to the employee during the calendar year are less than or equal to $1 million, the following rules apply in determining the amount of income tax to be withheld. 1040ez tax table Supplemental wages combined with regular wages. 1040ez tax table   If you pay supplemental wages with regular wages but do not specify the amount of each, withhold federal income tax as if the total were a single payment for a regular payroll period. 1040ez tax table Supplemental wages identified separately from regular wages. 1040ez tax table   If you pay supplemental wages separately (or combine them in a single payment and specify the amount of each), the federal income tax withholding method depends partly on whether you withhold income tax from your employee's regular wages. 1040ez tax table If you withheld income tax from an employee's regular wages in the current or immediately preceding calendar year, you can use one of the following methods for the supplemental wages. 1040ez tax table Withhold a flat 25% (no other percentage allowed). 1040ez tax table If the supplemental wages are paid concurrently with regular wages, add the supplemental wages to the concurrently paid regular wages. 1040ez tax table If there are no concurrently paid regular wages, add the supplemental wages to alternatively, either the regular wages paid or to be paid for the current payroll period or the regular wages paid for the preceding payroll period. 1040ez tax table Figure the income tax withholding as if the total of the regular wages and supplemental wages is a single payment. 1040ez tax table Subtract the tax withheld from the regular wages. 1040ez tax table Withhold the remaining tax from the supplemental wages. 1040ez tax table If there were other payments of supplemental wages paid during the payroll period made before the current payment of supplemental wages, aggregate all the payments of supplemental wages paid during the payroll period with the regular wages paid during the payroll period, calculate the tax on the total, subtract the tax already withheld from the regular wages and the previous supplemental wage payments, and withhold the remaining tax. 1040ez tax table If you did not withhold income tax from the employee's regular wages in the current or immediately preceding calendar year, use method 1-b. 1040ez tax table This would occur, for example, when the value of the employee's withholding allowances claimed on Form W-4 is more than the wages. 1040ez tax table Regardless of the method you use to withhold income tax on supplemental wages, they are subject to social security, Medicare, and FUTA taxes. 1040ez tax table Example 1. 1040ez tax table You pay John Peters a base salary on the 1st of each month. 1040ez tax table He is single and claims one withholding allowance. 1040ez tax table In January he is paid $1,000. 1040ez tax table Using the wage bracket tables, you withhold $50 from this amount. 1040ez tax table In February, he receives salary of $1,000 plus a commission of $2,000, which you combine with regular wages and do not separately identify. 1040ez tax table You figure the withholding based on the total of $3,000. 1040ez tax table The correct withholding from the tables is $338. 1040ez tax table Example 2. 1040ez tax table You pay Sharon Warren a base salary on the 1st of each month. 1040ez tax table She is single and claims one allowance. 1040ez tax table Her May 1 pay is $2,000. 1040ez tax table Using the wage bracket tables, you withhold $188. 1040ez tax table On May 14 she receives a bonus of $1,000. 1040ez tax table Electing to use supplemental wage withholding method 1-b, you: Add the bonus amount to the amount of wages from the most recent base salary pay date (May 1) ($2,000 + $1,000 = $3,000). 1040ez tax table Determine the amount of withholding on the combined $3,000 amount to be $338 using the wage bracket tables. 1040ez tax table Subtract the amount withheld from wages on the most recent base salary pay date (May 1) from the combined withholding amount ($338 – $188 = $150). 1040ez tax table Withhold $150 from the bonus payment. 1040ez tax table Example 3. 1040ez tax table The facts are the same as in Example 2, except you elect to use the flat rate method of withholding on the bonus. 1040ez tax table You withhold 25% of $1,000, or $250, from Sharon's bonus payment. 1040ez tax table Example 4. 1040ez tax table The facts are the same as in Example 2, except you elect to pay Sharon a second bonus of $2,000 on May 28. 1040ez tax table Using supplemental wage withholding method 1-b, you: Add the first and second bonus amounts to the amount of wages from the most recent base salary pay date (May 1) ($2,000 + $1,000 + $2,000 = $5,000). 1040ez tax table Determine the amount of withholding on the combined $5,000 amount to be $781 using the wage bracket tables. 1040ez tax table Subtract the amounts withheld from wages on the most recent base salary pay date (May 1) and the amounts withheld from the first bonus payment from the combined withholding amount ($781 – $188 – $150 = $443). 1040ez tax table Withhold $443 from the second bonus payment. 1040ez tax table Tips treated as supplemental wages. 1040ez tax table   Withhold income tax on tips from wages earned by the employee or from other funds the employee makes available. 1040ez tax table If an employee receives regular wages and reports tips, figure income tax withholding as if the tips were supplemental wages. 1040ez tax table If you have not withheld income tax from the regular wages, add the tips to the regular wages. 1040ez tax table Then withhold income tax on the total. 1040ez tax table If you withheld income tax from the regular wages, you can withhold on the tips by method 1-a or 1-b discussed earlier in this section under Supplemental wages identified separately from regular wages. 1040ez tax table Vacation pay. 1040ez tax table   Vacation pay is subject to withholding as if it were a regular wage payment. 1040ez tax table When vacation pay is in addition to regular wages for the vacation period, treat it as a supplemental wage payment. 1040ez tax table If the vacation pay is for a time longer than your usual payroll period, spread it over the pay periods for which you pay it. 1040ez tax table 8. 1040ez tax table Payroll Period Your payroll period is a period of service for which you usually pay wages. 1040ez tax table When you have a regular payroll period, withhold income tax for that time period even if your employee does not work the full period. 1040ez tax table No regular payroll period. 1040ez tax table   When you do not have a regular payroll period, withhold the tax as if you paid wages for a daily or miscellaneous payroll period. 1040ez tax table Figure the number of days (including Sundays and holidays) in the period covered by the wage payment. 1040ez tax table If the wages are unrelated to a specific length of time (for example, commissions paid on completion of a sale), count back the number of days from the payment period to the latest of: The last wage payment made during the same calendar year, The date employment began, if during the same calendar year, or January 1 of the same year. 1040ez tax table Employee paid for period less than 1 week. 1040ez tax table   When you pay an employee for a period of less than one week, and the employee signs a statement under penalties of perjury indicating he or she is not working for any other employer during the same week for wages subject to withholding, figure withholding based on a weekly payroll period. 1040ez tax table If the employee later begins to work for another employer for wages subject to withholding, the employee must notify you within 10 days. 1040ez tax table You then figure withholding based on the daily or miscellaneous period. 1040ez tax table 9. 1040ez tax table Withholding From Employees' Wages Income Tax Withholding Using Form W-4 to figure withholding. 1040ez tax table   To know how much federal income tax to withhold from employees' wages, you should have a Form W-4 on file for each employee. 1040ez tax table Encourage your employees to file an updated Form W-4 for 2014, especially if they owed taxes or received a large refund when filing their 2013 tax return. 1040ez tax table Advise your employees to use the IRS Withholding Calculator on the IRS website at www. 1040ez tax table irs. 1040ez tax table gov/individuals for help in determining how many withholding allowances to claim on their Forms W-4. 1040ez tax table   Ask all new employees to give you a signed Form W-4 when they start work. 1040ez tax table Make the form effective with the first wage payment. 1040ez tax table If a new employee does not give you a completed Form W-4, withhold income tax as if he or she is single, with no withholding allowances. 1040ez tax table Form in Spanish. 1040ez tax table   You can provide Formulario W-4(SP), Certificado de Exención de Retenciones del Empleado, in place of Form W-4, to your Spanish-speaking employees. 1040ez tax table For more information, see Publicación 17(SP), El Impuesto Federal sobre los Ingresos (Para Personas Físicas). 1040ez tax table The rules discussed in this section that apply to Form W-4 also apply to Formulario W-4(SP). 1040ez tax table Electronic system to receive Form W-4. 1040ez tax table   You may establish a system to electronically receive Forms W-4 from your employees. 1040ez tax table See Regulations section 31. 1040ez tax table 3402(f)(5)-1(c) for more information. 1040ez tax table Effective date of Form W-4. 1040ez tax table   A Form W-4 remains in effect until the employee gives you a new one. 1040ez tax table When you receive a new Form W-4 from an employee, do not adjust withholding for pay periods before the effective date of the new form. 1040ez tax table If an employee gives you a Form W-4 that replaces an existing Form W-4, begin withholding no later than the start of the first payroll period ending on or after the 30th day from the date when you received the replacement Form W-4. 1040ez tax table For exceptions, see Exemption from federal income tax withholding , IRS review of requested Forms W-4 , and Invalid Forms W-4 , later in this section. 1040ez tax table A Form W-4 that makes a change for the next calendar year will not take effect in the current calendar year. 1040ez tax table Successor employer. 1040ez tax table   If you are a successor employer (see Successor employer , later in this section), secure new Forms W-4 from the transferred employees unless the “Alternative Procedure” in section 5 of Revenue Procedure 2004-53 applies. 1040ez tax table See Revenue Procedure 2004-53, 2004-34 I. 1040ez tax table R. 1040ez tax table B. 1040ez tax table 320, available at www. 1040ez tax table irs. 1040ez tax table gov/irb/2004-34_IRB/ar13. 1040ez tax table html. 1040ez tax table Completing Form W-4. 1040ez tax table   The amount of any federal income tax withholding must be based on marital status and withholding allowances. 1040ez tax table Your employees may not base their withholding amounts on a fixed dollar amount or percentage. 1040ez tax table However, an employee may specify a dollar amount to be withheld in addition to the amount of withholding based on filing status and withholding allowances claimed on Form W-4. 1040ez tax table Employees may claim fewer withholding allowances than they are entitled to claim. 1040ez tax table They may wish to claim fewer allowances to ensure they have enough withholding or to offset the tax on other sources of taxable income not subject to withholding. 1040ez tax table See Publication 505, Tax Withholding and Estimated Tax, for more information about completing Form W-4. 1040ez tax table Along with Form W-4, you may wish to order Publication 505 for use by your employees. 1040ez tax table Do not accept any withholding or estimated tax payments from your employees in addition to withholding based on their Form W-4. 1040ez tax table If they require additional withholding, they should submit a new Form W-4 and, if necessary, pay estimated tax by filing Form 1040-ES, Estimated Tax for Individuals, or by using the Electronic Federal Tax Payment System (EFTPS) to make estimated tax payments. 1040ez tax table Exemption from federal income tax withholding. 1040ez tax table   Generally, an employee may claim exemption from federal income tax withholding because he or she had no income tax liability last year and expects none this year. 1040ez tax table See the Form W-4 instructions for more information. 1040ez tax table However, the wages are still subject to social security and Medicare taxes. 1040ez tax table See also Invalid Forms W-4 , later in this section. 1040ez tax table   A Form W-4 claiming exemption from withholding is effective when it is filed with the employer and only for that calendar year. 1040ez tax table To continue to be exempt from withholding in the next calendar year, an employee must give you a new Form W-4 by February 15. 1040ez tax table If the employee does not give you a new Form W-4 by February 15, begin withholding based on the last Form W-4 for the employee that did not claim an exemption from withholding or, if one was not filed, then withhold tax as if he or she is single with zero withholding allowances. 1040ez tax table If the employee provides a new Form W-4 claiming exemption from withholding on February 16 or later, you may apply it to future wages but do not refund any taxes already withheld. 1040ez tax table Withholding income taxes on the wages of nonresident alien employees. 1040ez tax table   In general, you must withhold federal income taxes on the wages of nonresident alien employees. 1040ez tax table However, see Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities, for exceptions to this general rule. 1040ez tax table Also see section 3 of Publication 51 (Circular A), Agricultural Employer's Tax Guide, for guidance on H-2A visa workers. 1040ez tax table Withholding adjustment for nonresident alien employees. 1040ez tax table   For 2014, apply the procedure discussed next to figure the amount of income tax to withhold from the wages of nonresident alien employees performing services within the United States. 1040ez tax table Nonresident alien students from India and business apprentices from India are not subject to this procedure. 1040ez tax table Instructions. 1040ez tax table   To figure how much income tax to withhold from the wages paid to a nonresident alien employee performing services in the United States, use the following steps. 1040ez tax table Step 1. 1040ez tax table   Add to the wages paid to the nonresident alien employee for the payroll period the amount shown in the chart below for the applicable payroll period. 1040ez tax table    Amount to Add to Nonresident Alien Employee's Wages for Calculating Income Tax Withholding Only   Payroll Period Add Additional     Weekly $ 43. 1040ez tax table 30     Biweekly 86. 1040ez tax table 50     Semimonthly 93. 1040ez tax table 80     Monthly 187. 1040ez tax table 50     Quarterly 562. 1040ez tax table 50     Semiannually 1,125. 1040ez tax table 00     Annually 2,250. 1040ez tax table 00     Daily or Miscellaneous (each day of the payroll period) 8. 1040ez tax table 70   Step 2. 1040ez tax table   Use the amount figured in Step 1 and the number of withholding allowances claimed (generally limited to one allowance) to figure income tax withholding. 1040ez tax table Determine the value of withholding allowances by multiplying the number of withholding allowances claimed by the appropriate amount from Table 5. 1040ez tax table Percentage Method—2014 Amount for One Withholding Allowance shown on page 41. 1040ez tax table If you are using the Percentage Method Tables for Income Tax Withholding, provided on pages 43–44, reduce the amount figured in Step 1 by the value of withholding allowances and use that reduced amount to figure the income tax withholding. 1040ez tax table If you are using the Wage Bracket Method for Income Tax Withholding, provided on pages 45–64, use the amount figured in Step 1 and the number of withholding allowances to figure income tax withholding. 1040ez tax table The amounts from the chart above are added to wages solely for calculating income tax withholding on the wages of the nonresident alien employee. 1040ez tax table The amounts from the chart should not be included in any box on the employee's Form W-2 and do not increase the income tax liability of the employee. 1040ez tax table Also, the amounts from the chart do not increase the social security tax or Medicare tax liability of the employer or the employee, or the FUTA tax liability of the employer. 1040ez tax table This procedure only applies to nonresident alien employees who have wages subject to income tax withholding. 1040ez tax table Example. 1040ez tax table An employer using the percentage method of withholding pays wages of $500 for a biweekly payroll period to a married nonresident alien employee. 1040ez tax table The nonresident alien has properly completed Form W-4, entering marital status as “single” with one withholding allowance and indicating status as a nonresident alien on Form W-4, line 6 (see Nonresident alien employee's Form W-4 , later in this section). 1040ez tax table The employer determines the wages to be used in the withholding tables by adding to the $500 amount of wages paid the amount of $86. 1040ez tax table 50 from the chart under Step 1 ($586. 1040ez tax table 50 total). 1040ez tax table The employer then applies the applicable tables to determine the income tax withholding for nonresident aliens (see Step 2 ). 1040ez tax table Reminder: If you use the Percentage Method Tables for Income Tax Withholding, reduce the amount figured in Step 1 by the value of withholding allowances and use that reduced amount to figure income tax withholding. 1040ez tax table The $86. 1040ez tax table 50 added to wages for calculating income tax withholding is not reported on Form W-2, and does not increase the income tax liability of the employee. 1040ez tax table Also, the $86. 1040ez tax table 50 added to wages does not affect the social security tax or Medicare tax liability of the employer or the employee, or the FUTA tax liability of the employer. 1040ez tax table Supplemental wage payment. 1040ez tax table   This procedure for determining the amount of income tax withholding does not apply to a supplemental wage payment (see section 7) if the 39. 1040ez tax table 6% mandatory flat rate withholding applies or if the 25% optional flat rate withholding is being used to calculate income tax withholding on the supplemental wage payment. 1040ez tax table Nonresident alien employee's Form W-4. 1040ez tax table   When completing Forms W-4, nonresident aliens are required to: Not claim exemption from income tax withholding, Request withholding as if they are single, regardless of their actual marital status, Claim only one allowance (if the nonresident alien is a resident of Canada, Mexico, or South Korea, or a student or business apprentice from India, he or she may claim more than one allowance), and Write “Nonresident Alien” or “NRA” above the dotted line on line 6 of Form W-4. 1040ez tax table   If you maintain an electronic Form W-4 system, you should provide a field for nonresident aliens to enter nonresident alien status in lieu of writing “Nonresident Alien” or “NRA” above the dotted line on line 6. 1040ez tax table A nonresident alien employee may request additional withholding at his or her option for other purposes, although such additions should not be necessary for withholding to cover federal income tax liability related to employment. 1040ez tax table Form 8233. 1040ez tax table   If a nonresident alien employee claims a tax treaty exemption from withholding, the employee must submit Form 8233, Exemption From Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Nonresident Alien Individual, with respect to the income exempt under the treaty, instead of Form W-4. 1040ez tax table See Publication 515 for details. 1040ez tax table IRS review of requested Forms W-4. 1040ez tax table   When requested by the IRS, you must make original Forms W-4 available for inspection by an IRS employee. 1040ez tax table You may also be directed to send certain Forms W-4 to the IRS. 1040ez tax table You may receive a notice from the IRS requiring you to submit a copy of Form W-4 for one or more of your named employees. 1040ez tax table Send the requested copy or copies of Form W-4 to the IRS at the address provided and in the manner directed by the notice. 1040ez tax table The IRS may also require you to submit copies of Form W-4 to the IRS as directed by Treasury Decision 9337, 2007-35 I. 1040ez tax table R. 1040ez tax table B. 1040ez tax table 455, which is available at www. 1040ez tax table irs. 1040ez tax table gov/irb/2007-35_IRB/ar10. 1040ez tax table html. 1040ez tax table When we refer to Form W-4, the same rules apply to Formulario W-4(SP), its Spanish translation. 1040ez tax table After submitting a copy of a requested Form W-4 to the IRS, continue to withhold federal income tax based on that Form W-4 if it is valid (see Invalid Forms W-4 , later in this section). 1040ez tax table However, if the IRS later notifies you in writing the employee is not entitled to claim exemption from withholding or a claimed number of withholding allowances, withhold federal income tax based on the effective date, marital status, and maximum number of withholding allowances specified in the IRS notice (commonly referred to as a "lock-in letter