Issue Number: IR-2020-149Inside This IssueIRS says a Paycheck Checkup helps avoid tax surprises
WASHINGTON — The Internal Revenue Service is reminding taxpayers that using the IRS Tax Withholding Estimator to do a Paycheck Checkup can help them have the right amount of tax withheld and avoid surprises when filing next year. Because income taxes are pay-as-you-go, taxpayers are required by law to pay most of their tax as income is received. There are two ways to do this:
When to do a Paycheck Check-up
Taxpayers should check their withholding annually and when life changes occur, such as marriage, childbirth, adoption and buying a home. The IRS recommends anyone who changed their withholding this year or received a tax bill after they filed their 2019 return should do a Paycheck Checkup.
Estimated taxes
Taxpayers with a substantial portion of their income not subject to withholding − the self-employed, investors, retirees, those with interest, dividends, capital gains, alimony and rental income − often need to pay quarterly installments of estimated tax. The IRS reminds taxpayers that various financial transactions, especially late in the year, can often have an unexpected tax impact. Examples include year-end and holiday bonuses, stock dividends, capital gain distributions from mutual funds and stocks, bonds, virtual currency, real estate or other property sold at a profit.
Form 1040-ES, Estimated Tax for Individuals, includes instructions to help taxpayers figure their estimated taxes. They can also visit IRS.gov/payments to pay electronically. IRS offers two free electronic payment options where taxpayers can schedule their estimated federal tax payments up to 30 days in advance with IRS Direct Pay or up to 365 days in advance with the Electronic Federal Tax Payment System (EFTPS).
For information see:
Tax Withholding Estimator FAQs
FAQs on the 2020 Form W-4
WASHINGTON — The Internal Revenue Service is reminding taxpayers that using the IRS Tax Withholding Estimator to do a Paycheck Checkup can help them have the right amount of tax withheld and avoid surprises when filing next year. Because income taxes are pay-as-you-go, taxpayers are required by law to pay most of their tax as income is received. There are two ways to do this:
- Through withholding from paychecks, pension payments, Social Security benefits or certain other government payments.
- Making quarterly estimated tax payments throughout the year for income not subject to withholding.
When to do a Paycheck Check-up
Taxpayers should check their withholding annually and when life changes occur, such as marriage, childbirth, adoption and buying a home. The IRS recommends anyone who changed their withholding this year or received a tax bill after they filed their 2019 return should do a Paycheck Checkup.
Estimated taxes
Taxpayers with a substantial portion of their income not subject to withholding − the self-employed, investors, retirees, those with interest, dividends, capital gains, alimony and rental income − often need to pay quarterly installments of estimated tax. The IRS reminds taxpayers that various financial transactions, especially late in the year, can often have an unexpected tax impact. Examples include year-end and holiday bonuses, stock dividends, capital gain distributions from mutual funds and stocks, bonds, virtual currency, real estate or other property sold at a profit.
Form 1040-ES, Estimated Tax for Individuals, includes instructions to help taxpayers figure their estimated taxes. They can also visit IRS.gov/payments to pay electronically. IRS offers two free electronic payment options where taxpayers can schedule their estimated federal tax payments up to 30 days in advance with IRS Direct Pay or up to 365 days in advance with the Electronic Federal Tax Payment System (EFTPS).
For information see:
Tax Withholding Estimator FAQs
FAQs on the 2020 Form W-4
Issue Number: IR-2020-119 - Inside This Issue
IRS provides guidance on employer leave-based donation programs
that aid victims of the COVID-19 pandemic
WASHINGTON – The Internal Revenue Service today provided guidance for employers whose employees forgo sick, vacation or personal leave because of the COVID-19 pandemic.
Notice 2020-46 provides that cash payments employers make to charitable organizations that provide relief to victims of the COVID-19 pandemic in exchange for sick, vacation or personal leave which their employees forgo will not be treated as compensation. Similarly, the employees will not be treated as receiving the value of the leave as income and cannot claim a deduction for the leave that they donated to their employer.
Employers, however, may deduct these cash payments as a business expense or as a charitable contribution deduction if the employer otherwise meets the respective requirements of either section.
Notice 2020-46 provides further details for employers with leave donation programs.
Additional information about tax relief for those affected by the COVID-19 pandemic can be found on IRS.gov.
IRS provides guidance on employer leave-based donation programs
that aid victims of the COVID-19 pandemic
WASHINGTON – The Internal Revenue Service today provided guidance for employers whose employees forgo sick, vacation or personal leave because of the COVID-19 pandemic.
Notice 2020-46 provides that cash payments employers make to charitable organizations that provide relief to victims of the COVID-19 pandemic in exchange for sick, vacation or personal leave which their employees forgo will not be treated as compensation. Similarly, the employees will not be treated as receiving the value of the leave as income and cannot claim a deduction for the leave that they donated to their employer.
Employers, however, may deduct these cash payments as a business expense or as a charitable contribution deduction if the employer otherwise meets the respective requirements of either section.
Notice 2020-46 provides further details for employers with leave donation programs.
Additional information about tax relief for those affected by the COVID-19 pandemic can be found on IRS.gov.
During this time, we just want to say, we hope everyone is doing well and staying safe.
If you need anything or have questions about anything, please contact us via the Comment Card section below.
We will continue to update the website with all available information.
Below is a link to all the latest updates as provided by National APA regarding COVID-19.
Be safe. Take care. We love you APA!
If you need anything or have questions about anything, please contact us via the Comment Card section below.
We will continue to update the website with all available information.
Below is a link to all the latest updates as provided by National APA regarding COVID-19.
Be safe. Take care. We love you APA!
Welcome... to Big Orange Payroll Country!!
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Our Mission
To provide economical, quality education and networking opportunities to East Tennessee Payroll Professionals; promote excellence within our profession, motivate and empower our members by providing the tools to be knowledgeable of the constant changing and complex Federal, State and Local regulatory issues. |
Monthly Chapter Meetings
We provide several training events each year. Our regular Monthly Chapter Meeting is held every 3rd Wednesday of the month. We also host a Local Payroll Seminar at least once a year, and we encourage support of the TN Statewide Payroll Conference. Each of these events offers the opportunity for networking, training, and re-certification credits for CPP's & FPC's. Our Director of Education and the officer's board actively seek highly qualified instructors and topics for all our training events.
We provide several training events each year. Our regular Monthly Chapter Meeting is held every 3rd Wednesday of the month. We also host a Local Payroll Seminar at least once a year, and we encourage support of the TN Statewide Payroll Conference. Each of these events offers the opportunity for networking, training, and re-certification credits for CPP's & FPC's. Our Director of Education and the officer's board actively seek highly qualified instructors and topics for all our training events.
Greater Nashville Chapter APA - Chattanooga Chapter
Memphis Chapter - American Payroll Association
Tennessee Statewide Payroll Conference a.k.a. TSWB
East TN Chapter of the American Payroll Association
Post Office Box 70833
Knoxville, Tennessee 37938
EastTNAPA@gmail.com
Post Office Box 70833
Knoxville, Tennessee 37938
EastTNAPA@gmail.com