Filing Exempt Case Study

The employer must provide the employee their W-2 form by the deadline set by the IRS. Although W-2 Forms have traditionally been filled out on paper, and many people consult tax specialists to make sure everything is correct and that they're getting the highest possible deductions. Components of the W-2 Form Chances are you've been issued a W-2 Form at some point in your life. W-2 Forms are divided into state and federal sections, since employees must file taxes on both levels. The fields on a W-2 Form provide room for all types of income. There is a box that states the total amount of money the employee made from that employer in the year in question, which is the same for federal and state. Contracted employees must fill out a W-9 Form prior to work, and they are given a 1099 Form by the company for which they provided service, but only if they completed $600 worth of work or

b. Fill out the Payments, Credits, and Tax section of the 1040EZ form using the following information:

The Fair Labor Standards Act has been amended many times and is virtually an ever-changing law, however, it does not cover all employees. There are several classes of “exempt” employees, including salaried employees in the executive/managerial, administrative, and professional areas. Outside salespeople are also considered exempt. One of the issues facing companies today is knowing which employees are exempt and which are non-exempt. There are tests to determine if an employee is exempt. In 2004 the tests changed to a standard test, which is whether or not the employee’s salary is $455/week or greater and the duties test, which allows for exempt status if more than 50% of the work performed by an individual is “exempt work.” (Pass and Broadwater) Exempt employees do not receive overtime pay, which can be a substantial cost savings to a company. My previous employer required that an exempt manager close the center each night even though we had non-exempt team leads who acted as managers in most capacities. The reason was to avoid overtime costs.

Section 61 of the Internal Revenue Code defines income as “income from whatever source derived unless otherwise excluded” (2014, IRC Code). In determining income, several key concepts have evolved from this definition. Explain the following concepts, and provide at least one example of each. Explain which concept you think is most beneficial from a taxpayer’s point of view and which concept is most beneficial from IRS’s point of view.

John and Janet Baker are husband and wife and maintain a household of 7, including Janet and John. Calvin and Florence Carter are Janet’s parents, who are retired. During the year, they received $19,000 in nontaxable funds (disability income, interest on municipal bonds and Social Security benefits) from which $8,000 was equally spent between them on clothing, transportation, and recreation. The remaining $11,000 was invested in tax-exempt securities. Janet Baker paid $1,000 for her mother’s dental work and $1,200 premium on her father’s own life insurance policy. Janet’s father,

to have timely filed your return - even if it is not received by the IRS.

Answer each of these questions, explaining the applicable rules and possibilities of each. (Points : 50)

Ken will need to include this amount as income. Ken will not be able to use the deduction for gambling loses.

Based on IRS regulations, there is a difference in the type of employment for employees and

Her August paycheck stub indicated that she pays $800.00 in Federal Income Taxes, $230.64 in Social Security

Note: the information stated below was provided by our account specialist regarding with your UPC Exemption :

Calculate taxable income by following the instructions on Line 12 to line 18 and enter taxable income on line 19. Lines 14.a to 14.f are for California Income Adjustments. Continue to page 2 of the form by typing your name and SSN. Complete next section Tax and Credits by entering values on line 31, 32, 40, 46, 47, 48, 62, and 64. Fill up values on line 71, 72, and 74 to enter aggregate payments on line 75.

You need to look up your taxable income on the official IRS tax table, to determine the "tax" amount, and enter than amount on line 10.

Employees with two or more jobs or with a spouse who also is employed must complete the

Amid their contact with citizens, IRS workers are required to clarify and ensure these citizen rights, including the privilege to claim. The IRS requests framework is for individuals who don't concur with the aftereffects of an examination of their assessment forms or different changes in accordance with their expense obligation. Notwithstanding examinations, you can offer numerous different