Filing Your Taxes Online is Fast, Easy and Secure.
Start now and receive your tax refund in as little as 7 days.

1. Get Answers

Your online questions are customized to your unique tax situation.

2. Maximize your Refund

Find tax credits for everything from school tuition to buying a hybri

3. E-File for FREE

E-file free with direct deposit to get your refund in as few as 7 days.

Filing your taxes with paper mail can be difficult and it could take weeks for your refund to arrive. IRS e-file is easy, fast and secure. There is no paperwork going to the IRS so tax refunds can be processed in as little as 7 days with direct deposit. As you prepare your taxes online, you can see your tax refund in real time.

FREE audit support and representation from an enrolled agent – NEW and only from H&R Block

Do Military Pay State Taxes

Where Can I File 2012 Taxes Online1040x Form And InstructionsFree State Income Tax PreparationIrs Gov State Tax FormsTaxslayer For MilitaryFederal Tax Form 2012 EzEz Form OnlineHow To File An Extension For 2011 Taxes Free2010 Form 1040How To File Amended Tax ReturnHow To Fill Out A 1040x Tax Amendment FormFile State Taxes Only Online FreeFile Taxes IncomeHow To File 2012 Taxes Late Online Free1040ez 2011 Form1040ez Form 2012 Online1040 Ez File Online FreeFree Federal Tax FilingWho Can Use 1040ez1040ez Tax Form 2010How To File Tax ReturnPrintable 1040ez Tax FormTaxslayer Coupon CodeIrs Form 1040xInstructions1040expressHow To File An AmendmentDownload A 1040ez Federal Tax FormH & R Block OnlineState TaxE-file State Taxes FreeTurbotax Amended Return 2012Efile Tax ReturnsIrs Tax Forms 2011 DownloadFirstgov Gov1040nr SoftwareWww Freefilefillableforms ComFile Taxes Free Federal And StateHow To File 2010 Tax ReturnsTax Form 1040ez

Do Military Pay State Taxes

Do military pay state taxes Index A Accelerated death benefits, Accelerated Death Benefits Accounting periods Change in, standard deduction not allowed, Persons not eligible for the standard deduction. Do military pay state taxes Accrued leave payment Disability retirement and, Accrued leave payment. Do military pay state taxes Adjusted gross income (AGI), Adjustments to Income Adjustments to income, Adjustments to Income Age Standard deduction for age 65 or older, Higher standard deduction for age (65 or older). Do military pay state taxes Age 65, Qualified Individual American Association of Retired Persons (AARP), Volunteer Income Tax Assistance and Tax Counseling for the Elderly. Do military pay state taxes Annuities, Pensions and Annuities Assistance (see Tax help) B Base amount, social security benefits, Base Amount Benefits Accident or health, Other compensation. Do military pay state taxes Long-term care, Long-Term Care Insurance Contracts No-fault insurance, Other compensation. Do military pay state taxes Sickness and injury, Sickness and Injury Benefits Social security, Are Any of Your Benefits Taxable? Veterans', Veterans' benefits. Do military pay state taxes Bequests, Gifts and inheritances. Do military pay state taxes Blind persons Standard deduction for, Higher standard deduction for blindness. Do military pay state taxes C Child and dependent care credit, Child and Dependent Care Credit Children Standard deduction for, Standard Deduction for Dependents Chronically ill persons, Chronically ill individual. Do military pay state taxes Chronically ill, defined, Terminally or chronically ill defined. Do military pay state taxes Compensation For services, Compensation for Services Loss or disfigurement, Other compensation. Do military pay state taxes Contributions Foreign employment, Foreign employment contributions. Do military pay state taxes Pension or annuity, Cost. Do military pay state taxes Cost, pension or annuity, Cost. Do military pay state taxes Credit Child and dependent care, Child and Dependent Care Credit Earned income, Earned Income Credit (EIC) The elderly or the disabled, Credit for the Elderly or the Disabled Credit for the elderly or the disabled, Credit for the Elderly or the Disabled D Death benefit, accelerated, Accelerated Death Benefits Decedents, Dependents. Do military pay state taxes Standard deduction, Decedent's final return. Do military pay state taxes Deductions Generally, Deductions Insurance premiums, Medical Insurance Premiums Itemized, Itemized Deductions Meals and lodging, Meals and Lodging Medical and dental, Medical and Dental Expenses Standard, Standard Deduction Dependents, Dependents. Do military pay state taxes Standard deduction for, Standard Deduction for Dependents Disabilities, individuals with Ownership and use test, Exception to use test for individuals with a disability. Do military pay state taxes Disability Person with, Persons with disabilities. Do military pay state taxes Physician's statement, Physician's statement. Do military pay state taxes Total and permanent, Permanent and total disability. Do military pay state taxes Disability income, Disability Pensions, Other compensation. Do military pay state taxes , Disability income. Do military pay state taxes Distributions, retirement plan, Retirement Plan Distributions Drugs (see Medicines) Dual-status taxpayers Standard deduction, Persons not eligible for the standard deduction. Do military pay state taxes E Early distributions, tax, Tax on Early Distributions Earned income credit, Earned Income Credit (EIC) Elderly or disabled credit, Credit for the Elderly or the Disabled Elderly persons Standard deduction for age 65 or older, Higher standard deduction for age (65 or older). Do military pay state taxes Employment tax withholding, Reminders Employment taxes, Employment taxes. Do military pay state taxes Endowment proceeds, Endowment Contract Proceeds Estimated tax, Tax Withholding and Estimated Tax, Estimated Tax, Who Must Make Estimated Tax Payments Excess accumulation, tax on, Tax on Excess Accumulation Exclusion, gain on sale of home, Maximum Amount of Exclusion F Federal Employees Compensation Act (FECA) payments, Federal Employees' Compensation Act (FECA). Do military pay state taxes Filing requirements Decedents, Dependents. Do military pay state taxes General requirements, General Requirements Surviving spouse, Surviving spouse. Do military pay state taxes Final return for decedent Standard deduction, Decedent's final return. Do military pay state taxes First-time homebuyer credit Recapture, Repaying the first-time homebuyer credit because you sold your home. Do military pay state taxes Form, Credit for the Elderly or the Disabled, Physician's statement. Do military pay state taxes 1099-R, Form 1099-R. Do military pay state taxes , Form 1099-R. Do military pay state taxes 5329, Form 5329. Do military pay state taxes 8853, Accelerated Death Benefits Schedule R, Credit for the Elderly or the Disabled, Physician's statement. Do military pay state taxes W-4P, Withholding. Do military pay state taxes Free tax services, Free help with your tax return. Do military pay state taxes G Gain on sale of home (see Sale of home) General rule, pension or annuity, Pensions and Annuities Gifts, Gifts and inheritances. Do military pay state taxes H Help (see Tax help) Home care (see Nursing services) Home improvements, Home Improvements Home, sale of, Sale of Home Hospital services, Hospital Services Household help, Household Help I Income Adjustments, Adjustments to Income Disability, Disability Pensions, Disability income. Do military pay state taxes Gross, defined, Gross income. Do military pay state taxes Nontaxable, Taxable and Nontaxable Income Sale of home, Sale of Home Self-employment, Self-employed persons. Do military pay state taxes Taxable, Taxable and Nontaxable Income Individual retirement arrangement (IRA) Adjustments to income, Individual Retirement Arrangement (IRA) Contributions and Deductions Contributions, Contributions. Do military pay state taxes Deductible contribution, Deductible contribution. Do military pay state taxes Distributions, Individual Retirement Arrangements (IRAs) Inheritances, Gifts and inheritances. Do military pay state taxes Injury benefits, Sickness and Injury Benefits, Cost paid by you. Do military pay state taxes Insurance Accident and health, Other compensation. Do military pay state taxes , Medical Insurance Premiums Benefits, long-term care, Long-Term Care Insurance Contracts Benefits, no-fault insurance, Other compensation. Do military pay state taxes Life insurance proceeds, Life Insurance Proceeds Proceeds paid after death, Life Insurance Proceeds Proceeds paid before death, Accelerated Death Benefits Insurance premiums for retired public safety officers, Insurance Premiums for Retired Public Safety Officers Itemized deductions, Itemized Deductions Married filing separately One spouse has itemized, Persons not eligible for the standard deduction. Do military pay state taxes L Life insurance proceeds, Life Insurance Proceeds Long-term care, Long-Term Care Chronically ill individuals, Chronically ill individual. Do military pay state taxes Maintenance and personal care services, Maintenance and personal care services. Do military pay state taxes Qualified insurance contracts, Qualified long-term care insurance contracts. Do military pay state taxes Qualified services, Qualified long-term care services. Do military pay state taxes Long-term care insurance, Long-Term Care Insurance Contracts Loss or disfigurement compensation, Other compensation. Do military pay state taxes Lump-sum distributions, Lump-sum distributions. Do military pay state taxes Lump-sum election, social security, Lump-Sum Election M Maintenance and personal care services, Maintenance and personal care services. Do military pay state taxes Married filing separately Itemized deductions One spouse has itemized so other must as well, Persons not eligible for the standard deduction. Do military pay state taxes Married taxpayers Age 65 or older spouse Standard deduction, Spouse 65 or older or blind. Do military pay state taxes Blind spouse Standard deduction, Spouse 65 or older or blind. Do military pay state taxes Meals and lodging expenses, Meals and Lodging Medical expenses, Medical and Dental Expenses Medicare, Medicare Part A. Do military pay state taxes , Medicare Part B. Do military pay state taxes , Medicare Part D. Do military pay state taxes Benefits, Medicare. Do military pay state taxes Medicines, Medicines Imported, Imported medicines and drugs. Do military pay state taxes Military retirement pay, Military Retirement Pay Minimum distributions, Tax on Excess Accumulation Minimum wage, Substantial gainful activity. Do military pay state taxes Missing children, Reminders Mortgage assistance payments, Mortgage assistance payments. Do military pay state taxes N Nonperiodic distributions, Nonperiodic Distributions Nonqualified use, Period of nonqualified use. Do military pay state taxes Nonresident aliens Standard deduction, Persons not eligible for the standard deduction. Do military pay state taxes Nontaxable income, Payments from a state fund for victims of crime. Do military pay state taxes Accident or health insurance benefits, Other compensation. Do military pay state taxes Bequests, Gifts and inheritances. Do military pay state taxes Generally, Taxable and Nontaxable Income Gifts, Gifts and inheritances. Do military pay state taxes Inheritances, Gifts and inheritances. Do military pay state taxes Mortgage assistance payments, Mortgage assistance payments. Do military pay state taxes No-fault insurance benefits, Other compensation. Do military pay state taxes Nutrition program for elderly, Nutrition Program for the Elderly. Do military pay state taxes Public assistance payments, Welfare benefits. Do military pay state taxes Sickness and injury benefits, Sickness and Injury Benefits Veterans' benefits, Veterans' benefits. Do military pay state taxes Winter energy use, Payments to reduce cost of winter energy use. Do military pay state taxes Workers' compensation, Workers' Compensation Nursing home, Nursing home. Do military pay state taxes Nursing services, Nursing Services Chronically ill individuals, Chronically ill individual. Do military pay state taxes Nutrition program for elderly, Nutrition Program for the Elderly. Do military pay state taxes O Old-age, survivors, and disability insurance benefits (OASDI), Old-age, survivors, and disability insurance benefits (OASDI). Do military pay state taxes Other items, Other Items Overall limitation, Overall limitation. Do military pay state taxes P Payments, estimated tax, Estimated Tax Pensions, Pensions and Annuities Pensions, disability, Disability Pensions Photographs, missing children, Reminders Physician's statement, disability, Physician's statement. Do military pay state taxes Prepaid insurance premiums, Prepaid insurance premiums. Do military pay state taxes Preparer, paid, Reminders Preparing your return, Return preparation assistance. Do military pay state taxes Profit-sharing plan, Retirement and profit-sharing plans. Do military pay state taxes Public assistance payments, Welfare benefits. Do military pay state taxes Publications (see Tax help) Q Qualified retirement plan, Tax on Early Distributions R Railroad retirement benefits, Railroad Retirement Benefits, Social Security and Equivalent Railroad Retirement Benefits Repayments Social security benefits, Repayment of Benefits Reporting pension income, How to report. Do military pay state taxes Residence, sale of, Sale of Home Retirement plans, distributions, Retirement Plan Distributions Returns Decedent, Dependents. Do military pay state taxes Executors and administrators, Dependents. Do military pay state taxes Filing requirements, 2013 Filing Requirements Surviving spouse, Surviving spouse. Do military pay state taxes Reverse mortgages, Reverse Mortgages S Salaries (see Compensation) Sale of Home First-time homebuyer credit, Repaying the first-time homebuyer credit because you sold your home. Do military pay state taxes Surviving spouse, Reminders Sale of home, Sale of Home Self-employed, Self-employed persons. Do military pay state taxes Short tax year Change in annual accounting period, Persons not eligible for the standard deduction. Do military pay state taxes Sickness and injury benefits, Sickness and Injury Benefits Simplified method, Pensions and Annuities Social security benefits, Social Security and Equivalent Railroad Retirement Benefits Standard deduction, Standard Deduction Age 65 or older, Higher standard deduction for age (65 or older). Do military pay state taxes Blind persons, Higher standard deduction for blindness. Do military pay state taxes Dependents, Standard Deduction for Dependents Final return of decedent, Decedent's final return. Do military pay state taxes Married filing separately One spouse has itemized, Persons not eligible for the standard deduction. Do military pay state taxes Starting date, annuity, Cost. Do military pay state taxes State fund for victims of crime, Payments from a state fund for victims of crime. Do military pay state taxes Substantial gainful activity, Substantial gainful activity. Do military pay state taxes Surrender of Iife insurance, Surrender of policy for cash. Do military pay state taxes Surviving Spouse, Reminders Surviving spouse, Surviving spouse. Do military pay state taxes Surviving spouse, insurance, Surviving spouse. Do military pay state taxes Survivors of retirees, Survivors of retirees. Do military pay state taxes T Tax Early distributions, Tax on Early Distributions Estimated, Tax Withholding and Estimated Tax, Estimated Tax Excess accumulation, Tax on Excess Accumulation Tax counseling for the elderly (TCE), Volunteer Income Tax Assistance and Tax Counseling for the Elderly. Do military pay state taxes Tax help, How To Get Tax Help Tax option, 10-year, Lump-sum distributions. Do military pay state taxes Tax return preparers, Reminders Taxable income, Taxable and Nontaxable Income Taxation of benefits, Are Any of Your Benefits Taxable? Terminally ill, defined, Terminally or chronically ill defined. Do military pay state taxes Total and permanent disability, defined, Permanent and total disability. Do military pay state taxes Transportation expenses, Transportation TTY/TDD information, How To Get Tax Help U U. Do military pay state taxes S. Do military pay state taxes citizen or resident, U. Do military pay state taxes S. Do military pay state taxes citizen or resident alien. Do military pay state taxes Unemployment compensation, Unemployment compensation. Do military pay state taxes V Veterans' benefits, Veterans' benefits. Do military pay state taxes Viatical settlement, Accelerated Death Benefits Victims of crime, Payments from a state fund for victims of crime. Do military pay state taxes Volunteer income tax assistance (VITA), Volunteer Income Tax Assistance and Tax Counseling for the Elderly. Do military pay state taxes Volunteer work, Volunteer work. Do military pay state taxes W Wages (see Compensation) Winter energy use payments, Payments to reduce cost of winter energy use. Do military pay state taxes Withholding Employment tax, Reminders Pensions and annuities, Withholding. Do military pay state taxes Workers' compensation, Workers' Compensation Worksheets, social security, Which worksheet to use. Do military pay state taxes Prev  Up     Home   More Online Publications
Español

Health News and Resources

Check out health-related data, RSS feeds, and websites.

The Do Military Pay State Taxes

Do military pay state taxes Publication 15 - Main Content Table of Contents 1. Do military pay state taxes Employer Identification Number (EIN) 2. Do military pay state taxes Who Are Employees?Relief provisions. Do military pay state taxes Business Owned and Operated by Spouses 3. Do military pay state taxes Family Employees 4. Do military pay state taxes Employee's Social Security Number (SSN)Registering for SSNVS. Do military pay state taxes 5. Do military pay state taxes Wages and Other CompensationAccountable plan. Do military pay state taxes Nonaccountable plan. Do military pay state taxes Per diem or other fixed allowance. Do military pay state taxes 50% test. Do military pay state taxes Health Savings Accounts and medical savings accounts. Do military pay state taxes Nontaxable fringe benefits. Do military pay state taxes When fringe benefits are treated as paid. Do military pay state taxes Valuation of fringe benefits. Do military pay state taxes Withholding on fringe benefits. Do military pay state taxes Depositing taxes on fringe benefits. Do military pay state taxes 6. Do military pay state taxes TipsOrdering rule. Do military pay state taxes 7. Do military pay state taxes Supplemental Wages 8. Do military pay state taxes Payroll Period 9. Do military pay state taxes Withholding From Employees' WagesIncome Tax Withholding Social Security and Medicare Taxes Part-Time Workers 10. Do military pay state taxes Required Notice to Employees About the Earned Income Credit (EIC) 11. Do military pay state taxes Depositing TaxesWhen To Deposit How To Deposit Deposit Penalties 12. Do military pay state taxes Filing Form 941 or Form 944 13. Do military pay state taxes Reporting Adjustments to Form 941 or Form 944Current Period Adjustments Prior Period Adjustments Wage Repayments 14. Do military pay state taxes Federal Unemployment (FUTA) TaxSuccessor employer. Do military pay state taxes Household employees. Do military pay state taxes When to deposit. Do military pay state taxes Household employees. Do military pay state taxes Electronic filing by reporting agents. Do military pay state taxes 16. Do military pay state taxes How To Use the Income Tax Withholding TablesWage Bracket Method Percentage Method Alternative Methods of Income Tax Withholding How To Get Tax Help 1. Do military pay state taxes Employer Identification Number (EIN) If you are required to report employment taxes or give tax statements to employees or annuitants, you need an EIN. Do military pay state taxes The EIN is a nine-digit number the IRS issues. Do military pay state taxes The digits are arranged as follows: 00-0000000. Do military pay state taxes It is used to identify the tax accounts of employers and certain others who have no employees. Do military pay state taxes Use your EIN on all of the items you send to the IRS and SSA. Do military pay state taxes For more information, see Publication 1635, Employer Identification Number: Understanding Your EIN. Do military pay state taxes If you do not have an EIN, you may apply for one online. Do military pay state taxes Go to the IRS. Do military pay state taxes gov and click on the Apply for an EIN Online link under Tools. Do military pay state taxes 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. Do military pay state taxes Do not use an SSN in place of an EIN. Do military pay state taxes You should have only one EIN. Do military pay state taxes 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). Do military pay state taxes Give the numbers you have, the name and address to which each was assigned, and the address of your main place of business. Do military pay state taxes The IRS will tell you which number to use. Do military pay state taxes If you took over another employer's business (see Successor employer in section 9), do not use that employer's EIN. Do military pay state taxes 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. Do military pay state taxes 2. Do military pay state taxes Who Are Employees? Generally, employees are defined either under common law or under statutes for certain situations. Do military pay state taxes See Publication 15-A for details on statutory employees and nonemployees. Do military pay state taxes Employee status under common law. Do military pay state taxes   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. Do military pay state taxes This is so even when you give the employee freedom of action. Do military pay state taxes What matters is that you have the right to control the details of how the services are performed. Do military pay state taxes See Publication 15-A for more information on how to determine whether an individual providing services is an independent contractor or an employee. Do military pay state taxes   Generally, people in business for themselves are not employees. Do military pay state taxes For example, doctors, lawyers, veterinarians, and others in an independent trade in which they offer their services to the public are usually not employees. Do military pay state taxes However, if the business is incorporated, corporate officers who work in the business are employees of the corporation. Do military pay state taxes   If an employer-employee relationship exists, it does not matter what it is called. Do military pay state taxes The employee may be called an agent or independent contractor. Do military pay state taxes It also does not matter how payments are measured or paid, what they are called, or if the employee works full or part time. Do military pay state taxes Statutory employees. Do military pay state taxes   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. Do military pay state taxes 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. Do military pay state taxes An agent (or commission) driver who delivers food, beverages (other than milk), laundry, or dry cleaning for someone else. Do military pay state taxes A full-time life insurance salesperson who sells primarily for one company. Do military pay state taxes 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. Do military pay state taxes 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. Do military pay state taxes The orders must be for merchandise for resale or supplies for use in the customer's business. Do military pay state taxes The customers must be retailers, wholesalers, contractors, or operators of hotels, restaurants, or other businesses dealing with food or lodging. Do military pay state taxes    Statutory nonemployees. Do military pay state taxes   Direct sellers, qualified real estate agents, and certain companion sitters are, by law, considered nonemployees. Do military pay state taxes They are generally treated as self-employed for all federal tax purposes, including income and employment taxes. Do military pay state taxes H-2A agricultural workers. Do military pay state taxes   On Form W-2, do not check box 13 (Statutory employee), as H-2A workers are not statutory employees. Do military pay state taxes Treating employees as nonemployees. Do military pay state taxes   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. Do military pay state taxes 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. Do military pay state taxes The applicable rates depend on whether you filed required Forms 1099. Do military pay state taxes 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. Do military pay state taxes You are liable for the income tax withholding regardless of whether the employee paid income tax on the wages. Do military pay state taxes You continue to owe the full employer share of social security and Medicare taxes. Do military pay state taxes The employee remains liable for the employee share of social security and Medicare taxes. Do military pay state taxes See Internal Revenue Code section 3509 for details. Do military pay state taxes Also see the Instructions for Form 941-X. Do military pay state taxes   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. Do military pay state taxes Section 3509 is not available for reclassifying statutory employees. Do military pay state taxes See Statutory employees , earlier in this section. Do military pay state taxes   If the employer issued required information returns, the section 3509 rates are: For social security taxes; employer rate of 6. Do military pay state taxes 2% plus 20% of the employee rate (see the Instructions for Form 941-X). Do military pay state taxes For Medicare taxes; employer rate of 1. Do military pay state taxes 45% plus 20% of the employee rate of 1. Do military pay state taxes 45%, for a total rate of 1. Do military pay state taxes 74% of wages. Do military pay state taxes For Additional Medicare Tax; 0. Do military pay state taxes 18% (20% of the employee rate of 0. Do military pay state taxes 9%) of wages subject to Additional Medicare Tax. Do military pay state taxes For income tax withholding, the rate is 1. Do military pay state taxes 5% of wages. Do military pay state taxes   If the employer did not issue required information returns, the section 3509 rates are: For social security taxes; employer rate of 6. Do military pay state taxes 2% plus 40% of the employee rate (see the Instructions for Form 941-X). Do military pay state taxes For Medicare taxes; employer rate of 1. Do military pay state taxes 45% plus 40% of the employee rate of 1. Do military pay state taxes 45%, for a total rate of 2. Do military pay state taxes 03% of wages. Do military pay state taxes For Additional Medicare Tax; 0. Do military pay state taxes 36% (40% of the employee rate of 0. Do military pay state taxes 9%) of wages subject to Additional Medicare Tax. Do military pay state taxes For income tax withholding, the rate is 3. Do military pay state taxes 0% of wages. Do military pay state taxes Relief provisions. Do military pay state taxes   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. Do military pay state taxes 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. Do military pay state taxes You (or your predecessor) must not have treated any worker holding a substantially similar position as an employee for any periods beginning after 1977. Do military pay state taxes See Publication 1976, Do You Qualify for Relief Under Section 530. Do military pay state taxes IRS help. Do military pay state taxes   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. Do military pay state taxes Voluntary Classification Settlement Program (VCSP). Do military pay state taxes   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. Do military pay state taxes To apply, use Form 8952, Application for Voluntary Classification Settlement Program (VCSP). Do military pay state taxes For more information visit IRS. Do military pay state taxes gov and enter “VCSP” in the search box. Do military pay state taxes 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. Do military pay state taxes See Publication 541, Partnerships, for more details. Do military pay state taxes The partnership is considered the employer of any employees, and is liable for any employment taxes due on wages paid to its employees. Do military pay state taxes Exception—Qualified joint venture. Do military pay state taxes   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. Do military pay state taxes 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). Do military pay state taxes   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. Do military pay state taxes Each spouse must also file a separate Schedule SE to pay self-employment taxes, as applicable. Do military pay state taxes   Spouses using the qualified joint venture rules are treated as sole proprietors for federal tax purposes and generally do not need an EIN. Do military pay state taxes 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. Do military pay state taxes Generally, filing as a qualified joint venture will not increase the spouses' total tax owed on the joint income tax return. Do military pay state taxes 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. Do military pay state taxes    Note. Do military pay state taxes If your spouse is your employee, not your partner, see One spouse employed by another in section 3. Do military pay state taxes   For more information on qualified joint ventures, visit IRS. Do military pay state taxes gov and enter “qualified joint venture” in the search box. Do military pay state taxes Exception—Community income. Do military pay state taxes   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. Do military pay state taxes S. Do military pay state taxes possession, you can treat the business either as a sole proprietorship (of the spouse who carried on the business) or a partnership. Do military pay state taxes You may still make an election to be taxed as a qualified joint venture instead of a partnership. Do military pay state taxes See Exception—Qualified joint venture , earlier. Do military pay state taxes 3. Do military pay state taxes Family Employees Child employed by parents. Do military pay state taxes   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. Do military pay state taxes 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. Do military pay state taxes However, see Covered services of a child or spouse , later in this section. Do military pay state taxes 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. Do military pay state taxes 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. Do military pay state taxes One spouse employed by another. Do military pay state taxes   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. Do military pay state taxes 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. Do military pay state taxes Covered services of a child or spouse. Do military pay state taxes   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. Do military pay state taxes Parent employed by son or daughter. Do military pay state taxes   When the employer is a son or daughter employing his or her parent the following rules apply. Do military pay state taxes 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. Do military pay state taxes 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. Do military pay state taxes    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. Do military pay state taxes   Payments made to a parent employed by his or her child are not subject to FUTA tax, regardless of the type of services provided. Do military pay state taxes 4. Do military pay state taxes 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. Do military pay state taxes This requirement also applies to resident and nonresident alien employees. Do military pay state taxes You should ask your employee to show you his or her social security card. Do military pay state taxes The employee may show the card if it is available. Do military pay state taxes Do not accept a social security card that says “Not valid for employment. Do military pay state taxes ” A social security number issued with this legend does not permit employment. Do military pay state taxes You may, but are not required to, photocopy the social security card if the employee provides it. Do military pay state taxes 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. Do military pay state taxes See Publication 1586, Reasonable Cause Regulations & Requirements for Missing and Incorrect Name/TINs, for information on the requirement to solicit the employee's SSN. Do military pay state taxes Applying for a social security card. Do military pay state taxes   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. Do military pay state taxes You can get Form SS-5 at SSA offices, by calling 1-800-772-1213, or from the SSA website at www. Do military pay state taxes socialsecurity. Do military pay state taxes gov/online/ss-5. Do military pay state taxes html. Do military pay state taxes The employee must complete and sign Form SS-5; it cannot be filed by the employer. Do military pay state taxes 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. Do military pay state taxes Applying for a social security number. Do military pay state taxes   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. Do military pay state taxes If you are filing electronically, enter all zeros (000-00-000) in the social security number field. Do military pay state taxes 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. Do military pay state taxes Furnish copies B, C, and 2 of Form W-2c to the employee. Do military pay state taxes 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. Do military pay state taxes For more information, visit the SSA's Employer W-2 Filing Instructions & Information webpage at www. Do military pay state taxes socialsecurity. Do military pay state taxes gov/employer. Do military pay state taxes Advise your employee to correct the SSN on his or her original Form W-2. Do military pay state taxes Correctly record the employee's name and SSN. Do military pay state taxes   Record the name and number of each employee as they are shown on the employee's social security card. Do military pay state taxes 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. Do military pay state taxes 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. Do military pay state taxes 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. Do military pay state taxes 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. Do military pay state taxes IRS individual taxpayer identification numbers (ITINs) for aliens. Do military pay state taxes   Do not accept an ITIN in place of an SSN for employee identification or for work. Do military pay state taxes An ITIN is only available to resident and nonresident aliens who are not eligible for U. Do military pay state taxes S. Do military pay state taxes employment and need identification for other tax purposes. Do military pay state taxes 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). Do military pay state taxes    An individual with an ITIN who later becomes eligible to work in the United States must obtain an SSN. Do military pay state taxes 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. Do military pay state taxes Do not use an ITIN in place of an SSN on Form W-2. Do military pay state taxes Verification of social security numbers. Do military pay state taxes   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. Do military pay state taxes Visit www. Do military pay state taxes socialsecurity. Do military pay state taxes gov/employer/ssnv. Do military pay state taxes htm for more information. Do military pay state taxes Registering for SSNVS. Do military pay state taxes   You must register online and receive authorization from your employer to use SSNVS. Do military pay state taxes To register, visit SSA's website at www. Do military pay state taxes ssa. Do military pay state taxes gov/employer and click on the Business Services Online link. Do military pay state taxes Follow the registration instructions to obtain a user identification (ID) and password. Do military pay state taxes You will need to provide the following information about yourself and your company. Do military pay state taxes Name. Do military pay state taxes SSN. Do military pay state taxes Date of birth. Do military pay state taxes Type of employer. Do military pay state taxes EIN. Do military pay state taxes Company name, address, and telephone number. Do military pay state taxes Email address. Do military pay state taxes   When you have completed the online registration process, SSA will mail a one-time activation code to your employer. Do military pay state taxes You must enter the activation code online to use SSNVS. Do military pay state taxes 5. Do military pay state taxes Wages and Other Compensation Wages subject to federal employment taxes generally include all pay you give to an employee for services performed. Do military pay state taxes The pay may be in cash or in other forms. Do military pay state taxes It includes salaries, vacation allowances, bonuses, commissions, and fringe benefits. Do military pay state taxes It does not matter how you measure or make the payments. Do military pay state taxes 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. Do military pay state taxes Also, compensation paid to a former employee for services performed while still employed is wages subject to employment taxes. Do military pay state taxes More information. Do military pay state taxes   See section 6 for a discussion of tips and section 7 for a discussion of supplemental wages. Do military pay state taxes Also, see section 15 for exceptions to the general rules for wages. Do military pay state taxes Publication 15-A provides additional information on wages, including nonqualified deferred compensation, and other compensation. Do military pay state taxes 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. Do military pay state taxes Employee business expense reimbursements. Do military pay state taxes   A reimbursement or allowance arrangement is a system by which you pay the advances, reimbursements, and charges for your employees' business expenses. Do military pay state taxes How you report a reimbursement or allowance amount depends on whether you have an accountable or a nonaccountable plan. Do military pay state taxes If a single payment includes both wages and an expense reimbursement, you must specify the amount of the reimbursement. Do military pay state taxes   These rules apply to all ordinary and necessary employee business expenses that would otherwise qualify for a deduction by the employee. Do military pay state taxes Accountable plan. Do military pay state taxes   To be an accountable plan, your reimbursement or allowance arrangement must require your employees to meet all three of the following rules. Do military pay state taxes They must have paid or incurred deductible expenses while performing services as your employees. Do military pay state taxes 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. Do military pay state taxes They must substantiate these expenses to you within a reasonable period of time. Do military pay state taxes They must return any amounts in excess of substantiated expenses within a reasonable period of time. Do military pay state taxes   Amounts paid under an accountable plan are not wages and are not subject to income, social security, Medicare, and FUTA taxes. Do military pay state taxes   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. Do military pay state taxes 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. Do military pay state taxes   A reasonable period of time depends on the facts and circumstances. Do military pay state taxes 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. Do military pay state taxes 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. Do military pay state taxes Nonaccountable plan. Do military pay state taxes   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. Do military pay state taxes 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. Do military pay state taxes   See section 7 for more information on supplemental wages. Do military pay state taxes Per diem or other fixed allowance. Do military pay state taxes   You may reimburse your employees by travel days, miles, or some other fixed allowance under the applicable revenue procedure. Do military pay state taxes In these cases, your employee is considered to have accounted to you if your reimbursement does not exceed rates established by the Federal Government. Do military pay state taxes The 2013 standard mileage rate for auto expenses was 56. Do military pay state taxes 5 cents per mile. Do military pay state taxes The rate for 2014 is 56 cents per mile. Do military pay state taxes   The government per diem rates for meals and lodging in the continental United States are listed in Publication 1542, Per Diem Rates. Do military pay state taxes 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). Do military pay state taxes   If the per diem or allowance paid exceeds the amounts substantiated, you must report the excess amount as wages. Do military pay state taxes This excess amount is subject to income tax withholding and payment of social security, Medicare, and FUTA taxes. Do military pay state taxes Show the amount equal to the substantiated amount (for example, the nontaxable portion) in box 12 of Form W-2 using code “L. Do military pay state taxes ” Wages not paid in money. Do military pay state taxes   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. Do military pay state taxes ” Payments in kind may be in the form of goods, lodging, food, clothing, or services. Do military pay state taxes 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. Do military pay state taxes   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. Do military pay state taxes Withhold income tax on these payments only if you and the employee agree to do so. Do military pay state taxes 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. Do military pay state taxes Moving expenses. Do military pay state taxes   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. Do military pay state taxes Reimbursed and employer-paid nonqualified moving expenses are includible in income and are subject to employment taxes and income tax withholding. Do military pay state taxes For more information on moving expenses, see Publication 521, Moving Expenses. Do military pay state taxes Meals and lodging. Do military pay state taxes   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. Do military pay state taxes 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. Do military pay state taxes    “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. Do military pay state taxes 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. Do military pay state taxes   However, whether meals or lodging are provided for the convenience of the employer depends on all of the facts and circumstances. Do military pay state taxes A written statement that the meals or lodging are for your convenience is not sufficient. Do military pay state taxes 50% test. Do military pay state taxes   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. Do military pay state taxes 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. Do military pay state taxes For more information, see Publication 15-B. Do military pay state taxes Health insurance plans. Do military pay state taxes   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. Do military pay state taxes Generally, this exclusion also applies to qualified long-term care insurance contracts. Do military pay state taxes 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). Do military pay state taxes 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. Do military pay state taxes See Announcement 92-16 for more information. Do military pay state taxes You can find Announcement 92-16 on page 53 of Internal Revenue Bulletin 1992-5. Do military pay state taxes Health Savings Accounts and medical savings accounts. Do military pay state taxes   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. Do military pay state taxes To the extent it is not reasonable to believe they will be excludable, your contributions are subject to these taxes. Do military pay state taxes 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. Do military pay state taxes 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. Do military pay state taxes For more information, see the Instructions for Form 8889, Health Savings Accounts (HSAs). Do military pay state taxes Medical care reimbursements. Do military pay state taxes   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. Do military pay state taxes See Publication 15-B for an exception for highly compensated employees. Do military pay state taxes Differential wage payments. Do military pay state taxes   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. Do military pay state taxes   Differential wage payments are wages for income tax withholding, but are not subject to social security, Medicare, or FUTA taxes. Do military pay state taxes Employers should report differential wage payments in box 1 of Form W-2. Do military pay state taxes For more information about the tax treatment of differential wage payments, visit IRS. Do military pay state taxes gov and enter “employees in a combat zone” in the search box. Do military pay state taxes Fringe benefits. Do military pay state taxes   You generally must include fringe benefits in an employee's gross income (but see Nontaxable fringe benefits next). Do military pay state taxes The benefits are subject to income tax withholding and employment taxes. Do military pay state taxes 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. Do military pay state taxes 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. Do military pay state taxes There are other special rules you and your employees may use to value certain fringe benefits. Do military pay state taxes See Publication 15-B for more information. Do military pay state taxes Nontaxable fringe benefits. Do military pay state taxes   Some fringe benefits are not taxable (or are minimally taxable) if certain conditions are met. Do military pay state taxes See Publication 15-B for details. Do military pay state taxes The following are some examples of nontaxable fringe benefits. Do military pay state taxes Services provided to your employees at no additional cost to you. Do military pay state taxes Qualified employee discounts. Do military pay state taxes Working condition fringes that are property or services the employee could deduct as a business expense if he or she had paid for it. Do military pay state taxes Examples include a company car for business use and subscriptions to business magazines. Do military pay state taxes 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). Do military pay state taxes Qualified transportation fringes subject to specified conditions and dollar limitations (including transportation in a commuter highway vehicle, any transit pass, and qualified parking). Do military pay state taxes Qualified moving expense reimbursement. Do military pay state taxes See Moving expenses , earlier in this section, for details. Do military pay state taxes The use of on-premises athletic facilities, if substantially all of the use is by employees, their spouses, and their dependent children. Do military pay state taxes Qualified tuition reduction an educational organization provides to its employees for education. Do military pay state taxes For more information, see Publication 970, Tax Benefits for Education. Do military pay state taxes Employer-provided cell phones provided primarily for a noncompensatory business reason. Do military pay state taxes   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. Do military pay state taxes No-additional-cost services. Do military pay state taxes Qualified employee discounts. Do military pay state taxes Meals provided at an employer operated eating facility. Do military pay state taxes Reduced tuition for education. Do military pay state taxes  For more information, including the definition of a highly compensated employee, see Publication 15-B. Do military pay state taxes When fringe benefits are treated as paid. Do military pay state taxes   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. Do military pay state taxes You do not have to make a formal choice of payment dates or notify the IRS of the dates you choose. Do military pay state taxes You do not have to make this choice for all employees. Do military pay state taxes 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. Do military pay state taxes See Publication 15-B for more information, including a discussion of the special accounting rule for fringe benefits provided during November and December. Do military pay state taxes Valuation of fringe benefits. Do military pay state taxes   Generally, you must determine the value of fringe benefits no later than January 31 of the next year. Do military pay state taxes Before January 31, you may reasonably estimate the value of the fringe benefits for purposes of withholding and depositing on time. Do military pay state taxes Withholding on fringe benefits. Do military pay state taxes   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. Do military pay state taxes However, see Withholding on supplemental wages when an employee receives more than $1 million of supplemental wages during the calendar year in section 7. Do military pay state taxes   You may choose not to withhold income tax on the value of an employee's personal use of a vehicle you provide. Do military pay state taxes You must, however, withhold social security and Medicare taxes on the use of the vehicle. Do military pay state taxes See Publication 15-B for more information on this election. Do military pay state taxes Depositing taxes on fringe benefits. Do military pay state taxes   Once you choose when fringe benefits are paid, you must deposit taxes in the same deposit period you treat the fringe benefits as paid. Do military pay state taxes To avoid a penalty, deposit the taxes following the general deposit rules for that deposit period. Do military pay state taxes   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. Do military pay state taxes See Valuation of fringe benefits , earlier. Do military pay state taxes If you underestimated the value and deposited too little, you may be subject to a failure-to-deposit penalty. Do military pay state taxes See section 11 for information on deposit penalties. Do military pay state taxes   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. Do military pay state taxes However, you must recover the income taxes before April 1 of the following year. Do military pay state taxes Sick pay. Do military pay state taxes   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. Do military pay state taxes These amounts are sometimes paid by a third party, such as an insurance company or an employees' trust. Do military pay state taxes In either case, these payments are subject to social security, Medicare, and FUTA taxes. Do military pay state taxes 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. Do military pay state taxes The payments are always subject to federal income tax. Do military pay state taxes See Publication 15-A for more information. Do military pay state taxes 6. Do military pay state taxes Tips Tips your employee receives from customers are generally subject to withholding. Do military pay state taxes Your employee must report cash tips to you by the 10th of the month after the month the tips are received. Do military pay state taxes 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. Do military pay state taxes Both directly and indirectly tipped employees must report tips to you. Do military pay state taxes No report is required for months when tips are less than $20. Do military pay state taxes Your employee reports the tips on Form 4070, Employee's Report of Tips to Employer, or on a similar statement. Do military pay state taxes 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. Do military pay state taxes 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. Do military pay state taxes You are permitted to establish a system for electronic tip reporting by employees. Do military pay state taxes See Regulations section 31. Do military pay state taxes 6053-1(d). Do military pay state taxes Collecting taxes on tips. Do military pay state taxes   You must collect income tax, employee social security tax, and employee Medicare tax on the employee's tips. Do military pay state taxes 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. Do military pay state taxes If an employee reports to you in writing $20 or more of tips in a month, the tips are also subject to FUTA tax. Do military pay state taxes   You can collect these taxes from the employee's wages or from other funds he or she makes available. Do military pay state taxes See Tips treated as supplemental wages in section 7 for more information. Do military pay state taxes 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. Do military pay state taxes You are responsible for the employer social security tax on wages and tips until the wages (including tips) reach the limit. Do military pay state taxes You are responsible for the employer Medicare tax for the whole year on all wages and tips. Do military pay state taxes File Form 941 or Form 944 to report withholding and employment taxes on tips. Do military pay state taxes Ordering rule. Do military pay state taxes   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. Do military pay state taxes If there are not enough funds available, withhold taxes in the following order. Do military pay state taxes Withhold on regular wages and other compensation. Do military pay state taxes Withhold social security and Medicare taxes on tips. Do military pay state taxes Withhold income tax on tips. Do military pay state taxes Reporting tips. Do military pay state taxes   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). Do military pay state taxes Report an adjustment on Form 941, line 9 (Form 944, line 6), for the uncollected social security and Medicare taxes. Do military pay state taxes Enter the amount of uncollected social security tax and Medicare tax on Form W-2, box 12, with codes “A” and “B. Do military pay state taxes ” Do not include any uncollected Additional Medicare Tax in box 12 of Form W-2. Do military pay state taxes See section 13 and the General Instructions for Forms W-2 and W-3. Do military pay state taxes   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. Do military pay state taxes See Revenue Ruling 2012-18, 2012-26 I. Do military pay state taxes R. Do military pay state taxes B. Do military pay state taxes 1032, available at www. Do military pay state taxes irs. Do military pay state taxes gov/irb/2012-26_IRB/ar07. Do military pay state taxes html. Do military pay state taxes Allocated tips. Do military pay state taxes   If you operate a large food or beverage establishment, you must report allocated tips under certain circumstances. Do military pay state taxes However, do not withhold income, social security, or Medicare taxes on allocated tips. Do military pay state taxes   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. Do military pay state taxes   The tips may be allocated by one of three methods—hours worked, gross receipts, or good faith agreement. Do military pay state taxes 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. Do military pay state taxes For information on filing Form 8027 electronically with the IRS, see Publication 1239. Do military pay state taxes Tip Rate Determination and Education Program. Do military pay state taxes   Employers may participate in the Tip Rate Determination and Education Program. Do military pay state taxes 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. Do military pay state taxes The two agreements are the Tip Rate Determination Agreement (TRDA) and the Tip Reporting Alternative Commitment (TRAC). Do military pay state taxes A tip agreement, the Gaming Industry Tip Compliance Agreement (GITCA), is available for the gaming (casino) industry. Do military pay state taxes To get more information about TRDA and TRAC agreements, see Publication 3144, Tips on Tips. Do military pay state taxes Additionally, visit IRS. Do military pay state taxes gov and enter “MSU tips” in the search box to get more information about GITCA, TRDA, or TRAC agreements. Do military pay state taxes 7. Do military pay state taxes Supplemental Wages Supplemental wages are wage payments to an employee that are not regular wages. Do military pay state taxes 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. Do military pay state taxes Other payments subject to the supplemental wage rules include taxable fringe benefits and expense allowances paid under a nonaccountable plan. Do military pay state taxes How you withhold on supplemental wages depends on whether the supplemental payment is identified as a separate payment from regular wages. Do military pay state taxes See Regulations section 31. Do military pay state taxes 3402(g)-1 for additional guidance for wages paid after January 1, 2007. Do military pay state taxes Also see Revenue Ruling 2008-29, 2008-24 I. Do military pay state taxes R. Do military pay state taxes B. Do military pay state taxes 1149, available at www. Do military pay state taxes irs. Do military pay state taxes gov/irb/2008-24_IRB/ar08. Do military pay state taxes html. Do military pay state taxes Withholding on supplemental wages when an employee receives more than $1 million of supplemental wages from you during the calendar year. Do military pay state taxes   Special rules apply to the extent supplemental wages paid to any one employee during the calendar year exceed $1 million. Do military pay state taxes 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. Do military pay state taxes 6% (or the highest rate of income tax for the year). Do military pay state taxes Withhold using the 39. Do military pay state taxes 6% rate without regard to the employee's Form W-4. Do military pay state taxes In determining supplemental wages paid to the employee during the year, include payments from all businesses under common control. Do military pay state taxes For more information, see Treasury Decision 9276, 2006-37 I. Do military pay state taxes R. Do military pay state taxes B. Do military pay state taxes 423, available at www. Do military pay state taxes irs. Do military pay state taxes gov/irb/2006-37_IRB/ar09. Do military pay state taxes html. Do military pay state taxes Withholding on supplemental wage payments to an employee who does not receive $1 million of supplemental wages during the calendar year. Do military pay state taxes   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. Do military pay state taxes Supplemental wages combined with regular wages. Do military pay state taxes   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. Do military pay state taxes Supplemental wages identified separately from regular wages. Do military pay state taxes   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. Do military pay state taxes 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. Do military pay state taxes Withhold a flat 25% (no other percentage allowed). Do military pay state taxes If the supplemental wages are paid concurrently with regular wages, add the supplemental wages to the concurrently paid regular wages. Do military pay state taxes 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. Do military pay state taxes Figure the income tax withholding as if the total of the regular wages and supplemental wages is a single payment. Do military pay state taxes Subtract the tax withheld from the regular wages. Do military pay state taxes Withhold the remaining tax from the supplemental wages. Do military pay state taxes 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. Do military pay state taxes 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. Do military pay state taxes This would occur, for example, when the value of the employee's withholding allowances claimed on Form W-4 is more than the wages. Do military pay state taxes Regardless of the method you use to withhold income tax on supplemental wages, they are subject to social security, Medicare, and FUTA taxes. Do military pay state taxes Example 1. Do military pay state taxes You pay John Peters a base salary on the 1st of each month. Do military pay state taxes He is single and claims one withholding allowance. Do military pay state taxes In January he is paid $1,000. Do military pay state taxes Using the wage bracket tables, you withhold $50 from this amount. Do military pay state taxes 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. Do military pay state taxes You figure the withholding based on the total of $3,000. Do military pay state taxes The correct withholding from the tables is $338. Do military pay state taxes Example 2. Do military pay state taxes You pay Sharon Warren a base salary on the 1st of each month. Do military pay state taxes She is single and claims one allowance. Do military pay state taxes Her May 1 pay is $2,000. Do military pay state taxes Using the wage bracket tables, you withhold $188. Do military pay state taxes On May 14 she receives a bonus of $1,000. Do military pay state taxes 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). Do military pay state taxes Determine the amount of withholding on the combined $3,000 amount to be $338 using the wage bracket tables. Do military pay state taxes Subtract the amount withheld from wages on the most recent base salary pay date (May 1) from the combined withholding amount ($338 – $188 = $150). Do military pay state taxes Withhold $150 from the bonus payment. Do military pay state taxes Example 3. Do military pay state taxes The facts are the same as in Example 2, except you elect to use the flat rate method of withholding on the bonus. Do military pay state taxes You withhold 25% of $1,000, or $250, from Sharon's bonus payment. Do military pay state taxes Example 4. Do military pay state taxes The facts are the same as in Example 2, except you elect to pay Sharon a second bonus of $2,000 on May 28. Do military pay state taxes 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). Do military pay state taxes Determine the amount of withholding on the combined $5,000 amount to be $781 using the wage bracket tables. Do military pay state taxes 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). Do military pay state taxes Withhold $443 from the second bonus payment. Do military pay state taxes Tips treated as supplemental wages. Do military pay state taxes   Withhold income tax on tips from wages earned by the employee or from other funds the employee makes available. Do military pay state taxes If an employee receives regular wages and reports tips, figure income tax withholding as if the tips were supplemental wages. Do military pay state taxes If you have not withheld income tax from the regular wages, add the tips to the regular wages. Do military pay state taxes Then withhold income tax on the total. Do military pay state taxes 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. Do military pay state taxes Vacation pay. Do military pay state taxes   Vacation pay is subject to withholding as if it were a regular wage payment. Do military pay state taxes When vacation pay is in addition to regular wages for the vacation period, treat it as a supplemental wage payment. Do military pay state taxes 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. Do military pay state taxes 8. Do military pay state taxes Payroll Period Your payroll period is a period of service for which you usually pay wages. Do military pay state taxes When you have a regular payroll period, withhold income tax for that time period even if your employee does not work the full period. Do military pay state taxes No regular payroll period. Do military pay state taxes   When you do not have a regular payroll period, withhold the tax as if you paid wages for a daily or miscellaneous payroll period. Do military pay state taxes Figure the number of days (including Sundays and holidays) in the period covered by the wage payment. Do military pay state taxes 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. Do military pay state taxes Employee paid for period less than 1 week. Do military pay state taxes   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. Do military pay state taxes If the employee later begins to work for another employer for wages subject to withholding, the employee must notify you within 10 days. Do military pay state taxes You then figure withholding based on the daily or miscellaneous period. Do military pay state taxes 9. Do military pay state taxes Withholding From Employees' Wages Income Tax Withholding Using Form W-4 to figure withholding. Do military pay state taxes   To know how much federal income tax to withhold from employees' wages, you should have a Form W-4 on file for each employee. Do military pay state taxes 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. Do military pay state taxes Advise your employees to use the IRS Withholding Calculator on the IRS website at www. Do military pay state taxes irs. Do military pay state taxes gov/individuals for help in determining how many withholding allowances to claim on their Forms W-4. Do military pay state taxes   Ask all new employees to give you a signed Form W-4 when they start work. Do military pay state taxes Make the form effective with the first wage payment. Do military pay state taxes 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. Do military pay state taxes Form in Spanish. Do military pay state taxes   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. Do military pay state taxes For more information, see Publicación 17(SP), El Impuesto Federal sobre los Ingresos (Para Personas Físicas). Do military pay state taxes The rules discussed in this section that apply to Form W-4 also apply to Formulario W-4(SP). Do military pay state taxes Electronic system to receive Form W-4. Do military pay state taxes   You may establish a system to electronically receive Forms W-4 from your employees. Do military pay state taxes See Regulations section 31. Do military pay state taxes 3402(f)(5)-1(c) for more information. Do military pay state taxes Effective date of Form W-4. Do military pay state taxes   A Form W-4 remains in effect until the employee gives you a new one. Do military pay state taxes 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. Do military pay state taxes 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. Do military pay state taxes 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. Do military pay state taxes A Form W-4 that makes a change for the next calendar year will not take effect in the current calendar year. Do military pay state taxes Successor employer. Do military pay state taxes   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. Do military pay state taxes See Revenue Procedure 2004-53, 2004-34 I. Do military pay state taxes R. Do military pay state taxes B. Do military pay state taxes 320, available at www. Do military pay state taxes irs. Do military pay state taxes gov/irb/2004-34_IRB/ar13. Do military pay state taxes html. Do military pay state taxes Completing Form W-4. Do military pay state taxes   The amount of any federal income tax withholding must be based on marital status and withholding allowances. Do military pay state taxes Your employees may not base their withholding amounts on a fixed dollar amount or percentage. Do military pay state taxes 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. Do military pay state taxes Employees may claim fewer withholding allowances than they are entitled to claim. Do military pay state taxes 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. Do military pay state taxes See Publication 505, Tax Withholding and Estimated Tax, for more information about completing Form W-4. Do military pay state taxes Along with Form W-4, you may wish to order Publication 505 for use by your employees. Do military pay state taxes Do not accept any withholding or estimated tax payments from your employees in addition to withholding based on their Form W-4. Do military pay state taxes 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. Do military pay state taxes Exemption from federal income tax withholding. Do military pay state taxes   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. Do military pay state taxes See the Form W-4 instructions for more information. Do military pay state taxes However, the wages are still subject to social security and Medicare taxes. Do military pay state taxes See also Invalid Forms W-4 , later in this section. Do military pay state taxes   A Form W-4 claiming exemption from withholding is effective when it is filed with the employer and only for that calendar year. Do military pay state taxes 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. Do military pay state taxes 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. Do military pay state taxes 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. Do military pay state taxes Withholding income taxes on the wages of nonresident alien employees. Do military pay state taxes   In general, you must withhold federal income taxes on the wages of nonresident alien employees. Do military pay state taxes However, see Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities, for exceptions to this general rule. Do military pay state taxes Also see section 3 of Publication 51 (Circular A), Agricultural Employer's Tax Guide, for guidance on H-2A visa workers. Do military pay state taxes Withholding adjustment for nonresident alien employees. Do military pay state taxes   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. Do military pay state taxes Nonresident alien students from India and business apprentices from India are not subject to this procedure. Do military pay state taxes Instructions. Do military pay state taxes   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. Do military pay state taxes Step 1. Do military pay state taxes   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. Do military pay state taxes    Amount to Add to Nonresident Alien Employee's Wages for Calculating Income Tax Withholding Only   Payroll Period Add Additional     Weekly $ 43. Do military pay state taxes 30     Biweekly 86. Do military pay state taxes 50     Semimonthly 93. Do military pay state taxes 80     Monthly 187. Do military pay state taxes 50     Quarterly 562. Do military pay state taxes 50     Semiannually 1,125. Do military pay state taxes 00     Annually 2,250. Do military pay state taxes 00     Daily or Miscellaneous (each day of the payroll period) 8. Do military pay state taxes 70   Step 2. Do military pay state taxes   Use the amount figured in Step 1 and the number of withholding allowances claimed (generally limited to one allowance) to figure income tax withholding. Do military pay state taxes Determine the value of withholding allowances by multiplying the number of withholding allowances claimed by the appropriate amount from Table 5. Do military pay state taxes Percentage Method—2014 Amount for One Withholding Allowance shown on page 41. Do military pay state taxes 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. Do military pay state taxes 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. Do military pay state taxes The amounts from the chart above are added to wages solely for calculating income tax withholding on the wages of the nonresident alien employee. Do military pay state taxes 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. Do military pay state taxes 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. Do military pay state taxes This procedure only applies to nonresident alien employees who have wages subject to income tax withholding. Do military pay state taxes Example. Do military pay state taxes An employer using the percentage method of withholding pays wages of $500 for a biweekly payroll period to a married nonresident alien employee. Do military pay state taxes 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). Do military pay state taxes 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. Do military pay state taxes 50 from the chart under Step 1 ($586. Do military pay state taxes 50 total). Do military pay state taxes The employer then applies the applicable tables to determine the income tax withholding for nonresident aliens (see Step 2 ). Do military pay state taxes 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. Do military pay state taxes The $86. Do military pay state taxes 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. Do military pay state taxes Also, the $86. Do military pay state taxes 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. Do military pay state taxes Supplemental wage payment. Do military pay state taxes   This procedure for determining the amount of income tax withholding does not apply to a supplemental wage payment (see section 7) if the 39. Do military pay state taxes 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. Do military pay state taxes Nonresident alien employee's Form W-4. Do military pay state taxes   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. Do military pay state taxes   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. Do military pay state taxes 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. Do military pay state taxes Form 8233. Do military pay state taxes   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. Do military pay state taxes See Publication 515 for details. Do military pay state taxes IRS review of requested Forms W-4. Do military pay state taxes   When requested by the IRS, you must make original Forms W-4 available for inspection by an IRS employee. Do military pay state taxes You may also be directed to send certain Forms W-4 to the IRS. Do military pay state taxes 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. Do military pay state taxes 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. Do military pay state taxes 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. Do military pay state taxes R. Do military pay state taxes B. Do military pay state taxes 455, which is available at www. Do military pay state taxes irs. Do military pay state taxes gov/irb/2007-35_IRB/ar10. Do military pay state taxes html. Do military pay state taxes When we refer to Form W-4, the same rules apply to Formulario W-4(SP), its Spanish translation. Do military pay state taxes 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). Do military pay state taxes 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