Tips for Pain-Free Tax Filing

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It’s time again to start thinking about getting your tax return prepared. Here are some quick tips you can use to help speed tax filing and avoid hassles.

  • Gather all documents needed to prepare an accurate return, including W-2s, 1099 forms, statements of interest and dividends, and relevant receipts. Failure to provide certain information could mean an incomplete return, which may require additional processing and delay any refund due.
  • Check names, Social Security numbers and amounts for accuracy and correct spelling. Also, if you supply a bank account number, double-check it.
  • Don’t wait to contact the office for a tax preparation appointment.

If you are interested in tax services, Contact Us to see if we’re the right fit, and if you’re already a client, call the office to schedule your appointment.

408-252-1800

Photo by Winnie Vinzence from Freerange Stock.

Required Withholding for Supplemental Pay

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Employers are required to withhold federal tax from supplemental wages paid to employees. These include bonuses, commissions, reimbursements (so long as you don’t have an accountable plan), severance, cash prizes, retroactive raises and taxable fringe benefits.

Suppose you pay a bonus separately from regular wages. In that case, you generally must either 1) withhold 22% or 2) add the supplemental wage to the employee’s regular wages and withhold at the ordinary rate.

Supplemental wages paid with regular wages are subject to ordinary withholding. (For supplemental wage payments over $1 million, tax on the excess must be withheld at the highest rate, currently 37%.)

If you have additional questions or are interested in tax services, feel free to contact our office.

408-252-1800

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Employee of the Quarter: Natalie Nguyen

Congratulations to Natalie Nguyen for earning the title of Employee of the Quarter for Q3 2024! In addition to being a delight to work with, Natalie has contributed meaningfully to the firm this period via:

  • Quick turnaround on important requests: When a deliverable or document needs to get sent, she’s on it.
  • Being proactive on her projects: She is quick to seek out the next right thing to do.
  • Professional communication: Natalie gracefully balances the personal and business aspects of great workplace communication.
Thank you, Natalie! We’re lucky to have you here at Wheeler.