Dino Tax Co Blog

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What are Supplemental Wages and What Methods are Used to Withhold Their Taxes?

Supplemental wages include, but are not limited to: bonuses, commissions, overtime pay, payments for accumulated sick leave, severance pay, awards, prizes, back pay, reported tips, retroactive pay increases, and payments for nondeductible moving expenses. As you can probably gather, supplemental wages more or less function as a catchall for income paid by your employer or [...]

IRAs, Roth IRAs, and 401(k)s – What can you contribute?

This post has to do with what you can contribute in the realm of the three most common types of retirement accounts, those being the traditional and Roth individual retirement accounts (IRAs) and 401(k) plans. Generally, people that rely on an IRA to save for retirement aren’t covered by a 401(k). Conversely, those that rely [...]

Businesses Owned by Spouses and Employee Family Members

(Note: When this article mentions the term “employment,” it means formal employment arrangements where a worker receives a Form W-2 at the end of the year, and therefore, as used in this article, does not include independent contractors that receive Forms 1099-MISC. If you want to keep things in the family, and I suggest that [...]

Employer Obligation to Obtain Employee Name and Social Security Number

(Note: The tax treatment discussed herein pertains to employees who receive Forms W-2 and does not apply to hired contractors who receive Forms 1099-MISC at year’s end.) As an employer, you’ll need to get a lot of information from your employees in order for them to start work. Besides their names, for tax purposes the [...]

Form W-4 and Employee Tax Withholding

This article deals first with Form W-4, Employee’s Withholding Certificate, and then gets into the specific types of taxes that are withheld in regards to employee wages, salaries, and tips. As usual, there’s the disclaimer that this article is not an exhaustive treatment of this subject. Specifically, this article primarily goes into the purpose of [...]

Who is an Employee as Defined by the IRS?

When people say the word “employment” they mean that they work for a living. That’s the colloquial definition. When people talk about their employer, they mean the person or company from which they derive income due to labor. However, these colloquialisms don’t necessarily correspond to the tax definition of what an employee is. This differentiation [...]

What is the self-employment tax and who pays it?

The self-employment tax seems to lend itself to an intuitive definition. What is the self-employment tax? It’s a tax on the self-employed. Who pays the self-employment tax? The self-employed pay, clearly. However, there’s more to this than meets the eye due to the nuance associated with the nexus of real life and arbitrary rules. This [...]

Innocent Spouse and Other Similar Tax Relief

So…your spouse or ex-spouse effed up on your joint tax return, either deliberately or accidentally. The IRS sends a letter to both you and your spouse or ex-spouse and is now requesting money from not only him/her, but you. How is this fair? You’re not the one that made the mistake or purposely misled them. [...]

The Basic Tax Implications of Bankruptcy

Bankruptcy is simple, the hard part comes later. But when you’ve hit the end of the road in terms of your debts and other liabilities, you really should declare bankruptcy. Refusing to do so is like refusing to throw up when you’ve had too much to drink, it only makes things worse. So declare bankruptcy; [...]

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