Many employers provide life insurance as a benefit to their employees. This benefit can generate taxable income which must be included in the employees’ W-2s. What is group-term life insurance? Life insurance must meet the following conditions to … [Read more...]
Individual Taxes: Withholding, Estimated Payments, and Underpayment of Estimated Tax Penalty
Individuals who owe tax with their Form 1040 or extension might owe more than they expected. The federal income tax is a pay-as-you-go tax. If you wait until you file your return to pay your tax, penalties may apply. There are two ways to pay as you … [Read more...]
Payroll Taxes: 0.9% Medicare Surtax
The Patient Protection and Affordable Care Act of 2010 – commonly referred to as Obamacare or the ACA – included two provisions related to the Medicare tax which took effect in 2013. Today we’ll look at the 0.9% increase to Medicare tax for high-wage … [Read more...]