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File Amended Return

File amended return Publication 15 - Main Content Table of Contents 1. File amended return Employer Identification Number (EIN) 2. File amended return Who Are Employees?Relief provisions. File amended return Business Owned and Operated by Spouses 3. File amended return Family Employees 4. File amended return Employee's Social Security Number (SSN)Registering for SSNVS. File amended return 5. File amended return Wages and Other CompensationAccountable plan. File amended return Nonaccountable plan. File amended return Per diem or other fixed allowance. File amended return 50% test. File amended return Health Savings Accounts and medical savings accounts. File amended return Nontaxable fringe benefits. File amended return When fringe benefits are treated as paid. File amended return Valuation of fringe benefits. File amended return Withholding on fringe benefits. File amended return Depositing taxes on fringe benefits. File amended return 6. File amended return TipsOrdering rule. File amended return 7. File amended return Supplemental Wages 8. File amended return Payroll Period 9. File amended return Withholding From Employees' WagesIncome Tax Withholding Social Security and Medicare Taxes Part-Time Workers 10. File amended return Required Notice to Employees About the Earned Income Credit (EIC) 11. File amended return Depositing TaxesWhen To Deposit How To Deposit Deposit Penalties 12. File amended return Filing Form 941 or Form 944 13. File amended return Reporting Adjustments to Form 941 or Form 944Current Period Adjustments Prior Period Adjustments Wage Repayments 14. File amended return Federal Unemployment (FUTA) TaxSuccessor employer. File amended return Household employees. File amended return When to deposit. File amended return Household employees. File amended return Electronic filing by reporting agents. File amended return 16. File amended return How To Use the Income Tax Withholding TablesWage Bracket Method Percentage Method Alternative Methods of Income Tax Withholding How To Get Tax Help 1. File amended return Employer Identification Number (EIN) If you are required to report employment taxes or give tax statements to employees or annuitants, you need an EIN. File amended return The EIN is a nine-digit number the IRS issues. File amended return The digits are arranged as follows: 00-0000000. File amended return It is used to identify the tax accounts of employers and certain others who have no employees. File amended return Use your EIN on all of the items you send to the IRS and SSA. File amended return For more information, see Publication 1635, Employer Identification Number: Understanding Your EIN. File amended return If you do not have an EIN, you may apply for one online. File amended return Go to the IRS. File amended return gov and click on the Apply for an EIN Online link under Tools. File amended return You may also apply for an EIN by calling 1-800-829-4933, or you can fax or mail Form SS-4, Application for Employer Identification Number, to the IRS. File amended return Do not use an SSN in place of an EIN. File amended return You should have only one EIN. File amended return If you have more than one and are not sure which one to use, call 1-800-829-4933 or 1-800-829-4059 (TDD/TTY for persons who are deaf, hard of hearing, or have a speech disability). File amended return Give the numbers you have, the name and address to which each was assigned, and the address of your main place of business. File amended return The IRS will tell you which number to use. File amended return If you took over another employer's business (see Successor employer in section 9), do not use that employer's EIN. File amended return If you have applied for an EIN but do not have your EIN by the time a return is due, file a paper return and write “Applied For” and the date you applied for it in the space shown for the number. File amended return 2. File amended return Who Are Employees? Generally, employees are defined either under common law or under statutes for certain situations. File amended return See Publication 15-A for details on statutory employees and nonemployees. File amended return Employee status under common law. File amended return   Generally, a worker who performs services for you is your employee if you have the right to control what will be done and how it will be done. File amended return This is so even when you give the employee freedom of action. File amended return What matters is that you have the right to control the details of how the services are performed. File amended return See Publication 15-A for more information on how to determine whether an individual providing services is an independent contractor or an employee. File amended return   Generally, people in business for themselves are not employees. File amended return For example, doctors, lawyers, veterinarians, and others in an independent trade in which they offer their services to the public are usually not employees. File amended return However, if the business is incorporated, corporate officers who work in the business are employees of the corporation. File amended return   If an employer-employee relationship exists, it does not matter what it is called. File amended return The employee may be called an agent or independent contractor. File amended return It also does not matter how payments are measured or paid, what they are called, or if the employee works full or part time. File amended return Statutory employees. File amended return   If someone who works for you is not an employee under the common law rules discussed earlier, do not withhold federal income tax from his or her pay, unless backup withholding applies. File amended return Although the following persons may not be common law employees, they are considered employees by statute for social security, Medicare, and FUTA tax purposes under certain conditions. File amended return An agent (or commission) driver who delivers food, beverages (other than milk), laundry, or dry cleaning for someone else. File amended return A full-time life insurance salesperson who sells primarily for one company. File amended return A homeworker who works by guidelines of the person for whom the work is done, with materials furnished by and returned to that person or to someone that person designates. File amended return A traveling or city salesperson (other than an agent-driver or commission-driver) who works full time (except for sideline sales activities) for one firm or person getting orders from customers. File amended return The orders must be for merchandise for resale or supplies for use in the customer's business. File amended return The customers must be retailers, wholesalers, contractors, or operators of hotels, restaurants, or other businesses dealing with food or lodging. File amended return    Statutory nonemployees. File amended return   Direct sellers, qualified real estate agents, and certain companion sitters are, by law, considered nonemployees. File amended return They are generally treated as self-employed for all federal tax purposes, including income and employment taxes. File amended return H-2A agricultural workers. File amended return   On Form W-2, do not check box 13 (Statutory employee), as H-2A workers are not statutory employees. File amended return Treating employees as nonemployees. File amended return   You will generally be liable for social security and Medicare taxes and withheld income tax if you do not deduct and withhold these taxes because you treated an employee as a nonemployee. File amended return You may be able to calculate your liability using special section 3509 rates for the employee share of social security and Medicare taxes and the federal income tax withholding. File amended return The applicable rates depend on whether you filed required Forms 1099. File amended return You cannot recover the employee share of social security, or Medicare tax, or income tax withholding from the employee if the tax is paid under section 3509. File amended return You are liable for the income tax withholding regardless of whether the employee paid income tax on the wages. File amended return You continue to owe the full employer share of social security and Medicare taxes. File amended return The employee remains liable for the employee share of social security and Medicare taxes. File amended return See Internal Revenue Code section 3509 for details. File amended return Also see the Instructions for Form 941-X. File amended return   Section 3509 rates are not available if you intentionally disregard the requirement to withhold taxes from the employee or if you withheld income taxes but not social security or Medicare taxes. File amended return Section 3509 is not available for reclassifying statutory employees. File amended return See Statutory employees , earlier in this section. File amended return   If the employer issued required information returns, the section 3509 rates are: For social security taxes; employer rate of 6. File amended return 2% plus 20% of the employee rate (see the Instructions for Form 941-X). File amended return For Medicare taxes; employer rate of 1. File amended return 45% plus 20% of the employee rate of 1. File amended return 45%, for a total rate of 1. File amended return 74% of wages. File amended return For Additional Medicare Tax; 0. File amended return 18% (20% of the employee rate of 0. File amended return 9%) of wages subject to Additional Medicare Tax. File amended return For income tax withholding, the rate is 1. File amended return 5% of wages. File amended return   If the employer did not issue required information returns, the section 3509 rates are: For social security taxes; employer rate of 6. File amended return 2% plus 40% of the employee rate (see the Instructions for Form 941-X). File amended return For Medicare taxes; employer rate of 1. File amended return 45% plus 40% of the employee rate of 1. File amended return 45%, for a total rate of 2. File amended return 03% of wages. File amended return For Additional Medicare Tax; 0. File amended return 36% (40% of the employee rate of 0. File amended return 9%) of wages subject to Additional Medicare Tax. File amended return For income tax withholding, the rate is 3. File amended return 0% of wages. File amended return Relief provisions. File amended return   If you have a reasonable basis for not treating a worker as an employee, you may be relieved from having to pay employment taxes for that worker. File amended return To get this relief, you must file all required federal tax returns, including information returns, on a basis consistent with your treatment of the worker. File amended return You (or your predecessor) must not have treated any worker holding a substantially similar position as an employee for any periods beginning after 1977. File amended return See Publication 1976, Do You Qualify for Relief Under Section 530. File amended return IRS help. File amended return   If you want the IRS to determine whether a worker is an employee, file Form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding. File amended return Voluntary Classification Settlement Program (VCSP). File amended return   Employers who are currently treating their workers (or a class or group of workers) as independent contractors or other nonemployees and want to voluntarily reclassify their workers as employees for future tax periods may be eligible to participate in the VCSP if certain requirements are met. File amended return To apply, use Form 8952, Application for Voluntary Classification Settlement Program (VCSP). File amended return For more information visit IRS. File amended return gov and enter “VCSP” in the search box. File amended return Business Owned and Operated by Spouses If you and your spouse jointly own and operate a business and share in the profits and losses, you are partners in a partnership, whether or not you have a formal partnership agreement. File amended return See Publication 541, Partnerships, for more details. File amended return The partnership is considered the employer of any employees, and is liable for any employment taxes due on wages paid to its employees. File amended return Exception—Qualified joint venture. File amended return   For tax years beginning after December 31, 2006, the Small Business and Work Opportunity Tax Act of 2007 (Public Law 110-28) provides that a “qualified joint venture,” whose only members are spouses filing a joint income tax return, can elect not to be treated as a partnership for federal tax purposes. File amended return A qualified joint venture conducts a trade or business where: The only members of the joint venture are spouses who file a joint income tax return, Both spouses materially participate (see Material participation in the Instructions for Schedule C (Form 1040), line G) in the trade or business (mere joint ownership of property is not enough), Both spouses elect to not be treated as a partnership, and The business is co-owned by both spouses and is not held in the name of a state law entity such as a partnership or limited liability company (LLC). File amended return   To make the election, all items of income, gain, loss, deduction, and credit must be divided between the spouses, in accordance with each spouse's interest in the venture, and reported on separate Schedules C or F as sole proprietors. File amended return Each spouse must also file a separate Schedule SE to pay self-employment taxes, as applicable. File amended return   Spouses using the qualified joint venture rules are treated as sole proprietors for federal tax purposes and generally do not need an EIN. File amended return If employment taxes are owed by the qualified joint venture, either spouse may report and pay the employment taxes due on the wages paid to the employees using the EIN of that spouse's sole proprietorship. File amended return Generally, filing as a qualified joint venture will not increase the spouses' total tax owed on the joint income tax return. File amended return However, it gives each spouse credit for social security earnings on which retirement benefits are based and for Medicare coverage without filing a partnership return. File amended return    Note. File amended return If your spouse is your employee, not your partner, see One spouse employed by another in section 3. File amended return   For more information on qualified joint ventures, visit IRS. File amended return gov and enter “qualified joint venture” in the search box. File amended return Exception—Community income. File amended return   If you and your spouse wholly own an unincorporated business as community property under the community property laws of a state, foreign country, or U. File amended return S. File amended return possession, you can treat the business either as a sole proprietorship (of the spouse who carried on the business) or a partnership. File amended return You may still make an election to be taxed as a qualified joint venture instead of a partnership. File amended return See Exception—Qualified joint venture , earlier. File amended return 3. File amended return Family Employees Child employed by parents. File amended return   Payments for the services of a child under age 18 who works for his or her parent in a trade or business are not subject to social security and Medicare taxes if the trade or business is a sole proprietorship or a partnership in which each partner is a parent of the child. File amended return If these payments are for work other than in a trade or business, such as domestic work in the parent's private home, they are not subject to social security and Medicare taxes until the child reaches age 21. File amended return However, see Covered services of a child or spouse , later in this section. File amended return Payments for the services of a child under age 21 who works for his or her parent, whether or not in a trade or business, are not subject to FUTA tax. File amended return Payments for the services of a child of any age who works for his or her parent are generally subject to income tax withholding unless the payments are for domestic work in the parent's home, or unless the payments are for work other than in a trade or business and are less than $50 in the quarter or the child is not regularly employed to do such work. File amended return One spouse employed by another. File amended return   The wages for the services of an individual who works for his or her spouse in a trade or business are subject to income tax withholding and social security and Medicare taxes, but not to FUTA tax. File amended return However, the payments for services of one spouse employed by another in other than a trade or business, such as domestic service in a private home, are not subject to social security, Medicare, and FUTA taxes. File amended return Covered services of a child or spouse. File amended return   The wages for the services of a child or spouse are subject to income tax withholding as well as social security, Medicare, and FUTA taxes if he or she works for: A corporation, even if it is controlled by the child's parent or the individual's spouse; A partnership, even if the child's parent is a partner, unless each partner is a parent of the child; A partnership, even if the individual's spouse is a partner; or An estate, even if it is the estate of a deceased parent. File amended return Parent employed by son or daughter. File amended return   When the employer is a son or daughter employing his or her parent the following rules apply. File amended return Payments for the services of a parent in the son’s or daughter’s (the employer’s) trade or business are subject to income tax withholding and social security and Medicare taxes. File amended return Payments for the services of a parent not in the son’s or daughter’s (the employer’s) trade or business are generally not subject to social security and Medicare taxes. File amended return    Social security and Medicare taxes do apply to payments made to a parent for domestic services if all of the following apply: The parent is employed by his or her son or daughter; The son or daughter (the employer) has a child or stepchild living in the home; The son or daughter (the employer) is a widow or widower, divorced, or living with a spouse who, because of a mental or physical condition, cannot care for the child or stepchild for at least 4 continuous weeks in a calendar quarter; and The child or stepchild is either under age 18 or requires the personal care of an adult for at least 4 continuous weeks in a calendar quarter due to a mental or physical condition. File amended return   Payments made to a parent employed by his or her child are not subject to FUTA tax, regardless of the type of services provided. File amended return 4. File amended return Employee's Social Security Number (SSN) You are required to get each employee's name and SSN and to enter them on Form W-2. File amended return This requirement also applies to resident and nonresident alien employees. File amended return You should ask your employee to show you his or her social security card. File amended return The employee may show the card if it is available. File amended return Do not accept a social security card that says “Not valid for employment. File amended return ” A social security number issued with this legend does not permit employment. File amended return You may, but are not required to, photocopy the social security card if the employee provides it. File amended return If you do not provide the correct employee name and SSN on Form W-2, you may owe a penalty unless you have reasonable cause. File amended return See Publication 1586, Reasonable Cause Regulations & Requirements for Missing and Incorrect Name/TINs, for information on the requirement to solicit the employee's SSN. File amended return Applying for a social security card. File amended return   Any employee who is legally eligible to work in the United States and does not have a social security card can get one by completing Form SS-5, Application for a Social Security Card, and submitting the necessary documentation. File amended return You can get Form SS-5 at SSA offices, by calling 1-800-772-1213, or from the SSA website at www. File amended return socialsecurity. File amended return gov/online/ss-5. File amended return html. File amended return The employee must complete and sign Form SS-5; it cannot be filed by the employer. File amended return You may be asked to supply a letter to accompany Form SS-5 if the employee has exceeded his or her yearly or lifetime limit for the number of replacement cards allowed. File amended return Applying for a social security number. File amended return   If you file Form W-2 on paper and your employee applied for an SSN but does not have one when you must file Form W-2, enter “Applied For” on the form. File amended return If you are filing electronically, enter all zeros (000-00-000) in the social security number field. File amended return When the employee receives the SSN, file Copy A of Form W-2c, Corrected Wage and Tax Statement, with the SSA to show the employee's SSN. File amended return Furnish copies B, C, and 2 of Form W-2c to the employee. File amended return Up to 25 Forms W-2c for each Form W-3c, Transmittal of Corrected Wage and Tax Statements, may now be filed per session over the Internet, with no limit on the number of sessions. File amended return For more information, visit the SSA's Employer W-2 Filing Instructions & Information webpage at www. File amended return socialsecurity. File amended return gov/employer. File amended return Advise your employee to correct the SSN on his or her original Form W-2. File amended return Correctly record the employee's name and SSN. File amended return   Record the name and number of each employee as they are shown on the employee's social security card. File amended return If the employee's name is not correct as shown on the card (for example, because of marriage or divorce), the employee should request a corrected card from the SSA. File amended return Continue to report the employee's wages under the old name until the employee shows you an updated social security card with the new name. File amended return If the SSA issues the employee a replacement card after a name change, or a new card with a different social security number after a change in alien work status, file a Form W-2c to correct the name/SSN reported for the most recently filed Form W-2. File amended return It is not necessary to correct other years if the previous name and number were used for years before the most recent Form W-2. File amended return IRS individual taxpayer identification numbers (ITINs) for aliens. File amended return   Do not accept an ITIN in place of an SSN for employee identification or for work. File amended return An ITIN is only available to resident and nonresident aliens who are not eligible for U. File amended return S. File amended return employment and need identification for other tax purposes. File amended return You can identify an ITIN because it is a nine-digit number, beginning with the number “9” with either a “7” or “8” as the fourth digit and is formatted like an SSN (for example, 9NN-7N-NNNN). File amended return    An individual with an ITIN who later becomes eligible to work in the United States must obtain an SSN. File amended return If the individual is currently eligible to work in the United States, instruct the individual to apply for an SSN and follow the instructions under Applying for a social security number, earlier. File amended return Do not use an ITIN in place of an SSN on Form W-2. File amended return Verification of social security numbers. File amended return   Employers and authorized reporting agents can use the Social Security Number Verification Service (SSNVS) to instantly verify up to 10 names and SSNs (per screen) at a time, or submit an electronic file of up to 250,000 names and SSNs and usually receive the results the next business day. File amended return Visit www. File amended return socialsecurity. File amended return gov/employer/ssnv. File amended return htm for more information. File amended return Registering for SSNVS. File amended return   You must register online and receive authorization from your employer to use SSNVS. File amended return To register, visit SSA's website at www. File amended return ssa. File amended return gov/employer and click on the Business Services Online link. File amended return Follow the registration instructions to obtain a user identification (ID) and password. File amended return You will need to provide the following information about yourself and your company. File amended return Name. File amended return SSN. File amended return Date of birth. File amended return Type of employer. File amended return EIN. File amended return Company name, address, and telephone number. File amended return Email address. File amended return   When you have completed the online registration process, SSA will mail a one-time activation code to your employer. File amended return You must enter the activation code online to use SSNVS. File amended return 5. File amended return Wages and Other Compensation Wages subject to federal employment taxes generally include all pay you give to an employee for services performed. File amended return The pay may be in cash or in other forms. File amended return It includes salaries, vacation allowances, bonuses, commissions, and fringe benefits. File amended return It does not matter how you measure or make the payments. File amended return Amounts an employer pays as a bonus for signing or ratifying a contract in connection with the establishment of an employer-employee relationship and an amount paid to an employee for cancellation of an employment contract and relinquishment of contract rights are wages subject to social security, Medicare, and FUTA taxes and income tax withholding. File amended return Also, compensation paid to a former employee for services performed while still employed is wages subject to employment taxes. File amended return More information. File amended return   See section 6 for a discussion of tips and section 7 for a discussion of supplemental wages. File amended return Also, see section 15 for exceptions to the general rules for wages. File amended return Publication 15-A provides additional information on wages, including nonqualified deferred compensation, and other compensation. File amended return Publication 15-B provides information on other forms of compensation, including: Accident and health benefits, Achievement awards, Adoption assistance, Athletic facilities, De minimis (minimal) benefits, Dependent care assistance, Educational assistance, Employee discounts, Employee stock options, Employer-provided cell phones, Group-term life insurance coverage, Health Savings Accounts, Lodging on your business premises, Meals, Moving expense reimbursements, No-additional-cost services, Retirement planning services, Transportation (commuting) benefits, Tuition reduction, and Working condition benefits. File amended return Employee business expense reimbursements. File amended return   A reimbursement or allowance arrangement is a system by which you pay the advances, reimbursements, and charges for your employees' business expenses. File amended return How you report a reimbursement or allowance amount depends on whether you have an accountable or a nonaccountable plan. File amended return If a single payment includes both wages and an expense reimbursement, you must specify the amount of the reimbursement. File amended return   These rules apply to all ordinary and necessary employee business expenses that would otherwise qualify for a deduction by the employee. File amended return Accountable plan. File amended return   To be an accountable plan, your reimbursement or allowance arrangement must require your employees to meet all three of the following rules. File amended return They must have paid or incurred deductible expenses while performing services as your employees. File amended return The reimbursement or advance must be paid for the expense and must not be an amount that would have otherwise been paid by the employee. File amended return They must substantiate these expenses to you within a reasonable period of time. File amended return They must return any amounts in excess of substantiated expenses within a reasonable period of time. File amended return   Amounts paid under an accountable plan are not wages and are not subject to income, social security, Medicare, and FUTA taxes. File amended return   If the expenses covered by this arrangement are not substantiated (or amounts in excess of substantiated expenses are not returned within a reasonable period of time), the amount paid under the arrangement in excess of the substantiated expenses is treated as paid under a nonaccountable plan. File amended return This amount is subject to income, social security, Medicare, and FUTA taxes for the first payroll period following the end of the reasonable period of time. File amended return   A reasonable period of time depends on the facts and circumstances. File amended return Generally, it is considered reasonable if your employees receive their advance within 30 days of the time they incur the expenses, adequately account for the expenses within 60 days after the expenses were paid or incurred, and return any amounts in excess of expenses within 120 days after the expenses were paid or incurred. File amended return Also, it is considered reasonable if you give your employees a periodic statement (at least quarterly) that asks them to either return or adequately account for outstanding amounts and they do so within 120 days. File amended return Nonaccountable plan. File amended return   Payments to your employee for travel and other necessary expenses of your business under a nonaccountable plan are wages and are treated as supplemental wages and subject to income, social security, Medicare, and FUTA taxes. File amended return Your payments are treated as paid under a nonaccountable plan if: Your employee is not required to or does not substantiate timely those expenses to you with receipts or other documentation, You advance an amount to your employee for business expenses and your employee is not required to or does not return timely any amount he or she does not use for business expenses, You advance or pay an amount to your employee regardless of whether you reasonably expect the employee to have business expenses related to your business, or You pay an amount as a reimbursement you would have otherwise paid as wages. File amended return   See section 7 for more information on supplemental wages. File amended return Per diem or other fixed allowance. File amended return   You may reimburse your employees by travel days, miles, or some other fixed allowance under the applicable revenue procedure. File amended return In these cases, your employee is considered to have accounted to you if your reimbursement does not exceed rates established by the Federal Government. File amended return The 2013 standard mileage rate for auto expenses was 56. File amended return 5 cents per mile. File amended return The rate for 2014 is 56 cents per mile. File amended return   The government per diem rates for meals and lodging in the continental United States are listed in Publication 1542, Per Diem Rates. File amended return Other than the amount of these expenses, your employees' business expenses must be substantiated (for example, the business purpose of the travel or the number of business miles driven). File amended return   If the per diem or allowance paid exceeds the amounts substantiated, you must report the excess amount as wages. File amended return This excess amount is subject to income tax withholding and payment of social security, Medicare, and FUTA taxes. File amended return Show the amount equal to the substantiated amount (for example, the nontaxable portion) in box 12 of Form W-2 using code “L. File amended return ” Wages not paid in money. File amended return   If in the course of your trade or business you pay your employees in a medium that is neither cash nor a readily negotiable instrument, such as a check, you are said to pay them “in kind. File amended return ” Payments in kind may be in the form of goods, lodging, food, clothing, or services. File amended return Generally, the fair market value of such payments at the time they are provided is subject to federal income tax withholding and social security, Medicare, and FUTA taxes. File amended return   However, noncash payments for household work, agricultural labor, and service not in the employer's trade or business are exempt from social security, Medicare, and FUTA taxes. File amended return Withhold income tax on these payments only if you and the employee agree to do so. File amended return Nonetheless, noncash payments for agricultural labor, such as commodity wages, are treated as cash payments subject to employment taxes if the substance of the transaction is a cash payment. File amended return Moving expenses. File amended return   Reimbursed and employer-paid qualified moving expenses (those that would otherwise be deductible by the employee) paid under an accountable plan are not includible in an employee's income unless you have knowledge the employee deducted the expenses in a prior year. File amended return Reimbursed and employer-paid nonqualified moving expenses are includible in income and are subject to employment taxes and income tax withholding. File amended return For more information on moving expenses, see Publication 521, Moving Expenses. File amended return Meals and lodging. File amended return   The value of meals is not taxable income and is not subject to income tax withholding and social security, Medicare, and FUTA taxes if the meals are furnished for the employer's convenience and on the employer's premises. File amended return The value of lodging is not subject to income tax withholding and social security, Medicare, and FUTA taxes if the lodging is furnished for the employer's convenience, on the employer's premises, and as a condition of employment. File amended return    “For the convenience of the employer” means you have a substantial business reason for providing the meals and lodging other than to provide additional compensation to the employee. File amended return For example, meals you provide at the place of work so that an employee is available for emergencies during his or her lunch period are generally considered to be for your convenience. File amended return   However, whether meals or lodging are provided for the convenience of the employer depends on all of the facts and circumstances. File amended return A written statement that the meals or lodging are for your convenience is not sufficient. File amended return 50% test. File amended return   If over 50% of the employees who are provided meals on an employer's business premises receive these meals for the convenience of the employer, all meals provided on the premises are treated as furnished for the convenience of the employer. File amended return If this 50% test is met, the value of the meals is excludable from income for all employees and is not subject to federal income tax withholding or employment taxes. File amended return For more information, see Publication 15-B. File amended return Health insurance plans. File amended return   If you pay the cost of an accident or health insurance plan for your employees, including an employee's spouse and dependents, your payments are not wages and are not subject to social security, Medicare, and FUTA taxes, or federal income tax withholding. File amended return Generally, this exclusion also applies to qualified long-term care insurance contracts. File amended return However, for income tax withholding, the value of health insurance benefits must be included in the wages of S corporation employees who own more than 2% of the S corporation (2% shareholders). File amended return For social security, Medicare, and FUTA taxes, the health insurance benefits are excluded from the wages only for employees and their dependents or for a class or classes of employees and their dependents. File amended return See Announcement 92-16 for more information. File amended return You can find Announcement 92-16 on page 53 of Internal Revenue Bulletin 1992-5. File amended return Health Savings Accounts and medical savings accounts. File amended return   Your contributions to an employee's Health Savings Account (HSA) or Archer medical savings account (MSA) are not subject to social security, Medicare, or FUTA taxes, or federal income tax withholding if it is reasonable to believe at the time of payment of the contributions they will be excludable from the income of the employee. File amended return To the extent it is not reasonable to believe they will be excludable, your contributions are subject to these taxes. File amended return Employee contributions to their HSAs or MSAs through a payroll deduction plan must be included in wages and are subject to social security, Medicare, and FUTA taxes and income tax withholding. File amended return However, HSA contributions made under a salary reduction arrangement in a section 125 cafeteria plan are not wages and are not subject to employment taxes or withholding. File amended return For more information, see the Instructions for Form 8889, Health Savings Accounts (HSAs). File amended return Medical care reimbursements. File amended return   Generally, medical care reimbursements paid for an employee under an employer's self-insured medical reimbursement plan are not wages and are not subject to social security, Medicare, and FUTA taxes, or income tax withholding. File amended return See Publication 15-B for an exception for highly compensated employees. File amended return Differential wage payments. File amended return   Differential wage payments are any payments made by an employer to an individual for a period during which the individual is performing service in the uniformed services while on active duty for a period of more than 30 days and represent all or a portion of the wages the individual would have received from the employer if the individual were performing services for the employer. File amended return   Differential wage payments are wages for income tax withholding, but are not subject to social security, Medicare, or FUTA taxes. File amended return Employers should report differential wage payments in box 1 of Form W-2. File amended return For more information about the tax treatment of differential wage payments, visit IRS. File amended return gov and enter “employees in a combat zone” in the search box. File amended return Fringe benefits. File amended return   You generally must include fringe benefits in an employee's gross income (but see Nontaxable fringe benefits next). File amended return The benefits are subject to income tax withholding and employment taxes. File amended return Fringe benefits include cars you provide, flights on aircraft you provide, free or discounted commercial flights, vacations, discounts on property or services, memberships in country clubs or other social clubs, and tickets to entertainment or sporting events. File amended return In general, the amount you must include is the amount by which the fair market value of the benefits is more than the sum of what the employee paid for it plus any amount the law excludes. File amended return There are other special rules you and your employees may use to value certain fringe benefits. File amended return See Publication 15-B for more information. File amended return Nontaxable fringe benefits. File amended return   Some fringe benefits are not taxable (or are minimally taxable) if certain conditions are met. File amended return See Publication 15-B for details. File amended return The following are some examples of nontaxable fringe benefits. File amended return Services provided to your employees at no additional cost to you. File amended return Qualified employee discounts. File amended return Working condition fringes that are property or services the employee could deduct as a business expense if he or she had paid for it. File amended return Examples include a company car for business use and subscriptions to business magazines. File amended return Certain minimal value fringes (including an occasional cab ride when an employee must work overtime and meals you provide at eating places you run for your employees if the meals are not furnished at below cost). File amended return Qualified transportation fringes subject to specified conditions and dollar limitations (including transportation in a commuter highway vehicle, any transit pass, and qualified parking). File amended return Qualified moving expense reimbursement. File amended return See Moving expenses , earlier in this section, for details. File amended return The use of on-premises athletic facilities, if substantially all of the use is by employees, their spouses, and their dependent children. File amended return Qualified tuition reduction an educational organization provides to its employees for education. File amended return For more information, see Publication 970, Tax Benefits for Education. File amended return Employer-provided cell phones provided primarily for a noncompensatory business reason. File amended return   However, do not exclude the following fringe benefits from the income of highly compensated employees unless the benefit is available to other employees on a nondiscriminatory basis. File amended return No-additional-cost services. File amended return Qualified employee discounts. File amended return Meals provided at an employer operated eating facility. File amended return Reduced tuition for education. File amended return  For more information, including the definition of a highly compensated employee, see Publication 15-B. File amended return When fringe benefits are treated as paid. File amended return   You may choose to treat certain noncash fringe benefits as paid by the pay period, by the quarter, or on any other basis you choose as long as you treat the benefits as paid at least once a year. File amended return You do not have to make a formal choice of payment dates or notify the IRS of the dates you choose. File amended return You do not have to make this choice for all employees. File amended return You may change methods as often as you like, as long as you treat all benefits provided in a calendar year as paid by December 31 of the calendar year. File amended return See Publication 15-B for more information, including a discussion of the special accounting rule for fringe benefits provided during November and December. File amended return Valuation of fringe benefits. File amended return   Generally, you must determine the value of fringe benefits no later than January 31 of the next year. File amended return Before January 31, you may reasonably estimate the value of the fringe benefits for purposes of withholding and depositing on time. File amended return Withholding on fringe benefits. File amended return   You may add the value of fringe benefits to regular wages for a payroll period and figure withholding taxes on the total, or you may withhold federal income tax on the value of the fringe benefits at the optional flat 25% supplemental wage rate. File amended return However, see Withholding on supplemental wages when an employee receives more than $1 million of supplemental wages during the calendar year in section 7. File amended return   You may choose not to withhold income tax on the value of an employee's personal use of a vehicle you provide. File amended return You must, however, withhold social security and Medicare taxes on the use of the vehicle. File amended return See Publication 15-B for more information on this election. File amended return Depositing taxes on fringe benefits. File amended return   Once you choose when fringe benefits are paid, you must deposit taxes in the same deposit period you treat the fringe benefits as paid. File amended return To avoid a penalty, deposit the taxes following the general deposit rules for that deposit period. File amended return   If you determine by January 31 you overestimated the value of a fringe benefit at the time you withheld and deposited for it, you may claim a refund for the overpayment or have it applied to your next employment tax return. File amended return See Valuation of fringe benefits , earlier. File amended return If you underestimated the value and deposited too little, you may be subject to a failure-to-deposit penalty. File amended return See section 11 for information on deposit penalties. File amended return   If you deposited the required amount of taxes but withheld a lesser amount from the employee, you can recover from the employee the social security, Medicare, or income taxes you deposited on his or her behalf, and included in the employee's Form W-2. File amended return However, you must recover the income taxes before April 1 of the following year. File amended return Sick pay. File amended return   In general, sick pay is any amount you pay under a plan to an employee who is unable to work because of sickness or injury. File amended return These amounts are sometimes paid by a third party, such as an insurance company or an employees' trust. File amended return In either case, these payments are subject to social security, Medicare, and FUTA taxes. File amended return Sick pay becomes exempt from these taxes after the end of 6 calendar months after the calendar month the employee last worked for the employer. File amended return The payments are always subject to federal income tax. File amended return See Publication 15-A for more information. File amended return 6. File amended return Tips Tips your employee receives from customers are generally subject to withholding. File amended return Your employee must report cash tips to you by the 10th of the month after the month the tips are received. File amended return The report should include tips you paid over to the employee for charge customers, tips the employee received directly from customers, and tips received from other employees under any tip-sharing arrangement. File amended return Both directly and indirectly tipped employees must report tips to you. File amended return No report is required for months when tips are less than $20. File amended return Your employee reports the tips on Form 4070, Employee's Report of Tips to Employer, or on a similar statement. File amended return The statement must be signed by the employee and must include: The employee's name, address, and SSN, Your name and address, The month or period the report covers, and The total of tips received during the month or period. File amended return Both Forms 4070 and 4070-A, Employee's Daily Record of Tips, are included in Publication 1244, Employee's Daily Record of Tips and Report to Employer. File amended return You are permitted to establish a system for electronic tip reporting by employees. File amended return See Regulations section 31. File amended return 6053-1(d). File amended return Collecting taxes on tips. File amended return   You must collect income tax, employee social security tax, and employee Medicare tax on the employee's tips. File amended return The withholding rules for withholding an employee's share of Medicare tax on tips also apply to withholding the Additional Medicare Tax once wages and tips exceed $200,000 in the calendar year. File amended return If an employee reports to you in writing $20 or more of tips in a month, the tips are also subject to FUTA tax. File amended return   You can collect these taxes from the employee's wages or from other funds he or she makes available. File amended return See Tips treated as supplemental wages in section 7 for more information. File amended return Stop collecting the employee social security tax when his or her wages and tips for tax year 2014 reach $117,000; collect the income and employee Medicare taxes for the whole year on all wages and tips. File amended return You are responsible for the employer social security tax on wages and tips until the wages (including tips) reach the limit. File amended return You are responsible for the employer Medicare tax for the whole year on all wages and tips. File amended return File Form 941 or Form 944 to report withholding and employment taxes on tips. File amended return Ordering rule. File amended return   If, by the 10th of the month after the month for which you received an employee's report on tips, you do not have enough employee funds available to deduct the employee tax, you no longer have to collect it. File amended return If there are not enough funds available, withhold taxes in the following order. File amended return Withhold on regular wages and other compensation. File amended return Withhold social security and Medicare taxes on tips. File amended return Withhold income tax on tips. File amended return Reporting tips. File amended return   Report tips and any collected and uncollected social security and Medicare taxes on Form W-2 and on Form 941, lines 5b, 5c, and 5d (Form 944, lines 4b, 4c, and 4d). File amended return Report an adjustment on Form 941, line 9 (Form 944, line 6), for the uncollected social security and Medicare taxes. File amended return Enter the amount of uncollected social security tax and Medicare tax on Form W-2, box 12, with codes “A” and “B. File amended return ” Do not include any uncollected Additional Medicare Tax in box 12 of Form W-2. File amended return See section 13 and the General Instructions for Forms W-2 and W-3. File amended return   Revenue Ruling 2012-18 provides guidance for employers regarding social security and Medicare taxes imposed on tips, including information on the reporting of the employer share of social security and Medicare taxes under section 3121(q), the difference between tips and service charges, and the section 45B credit. File amended return See Revenue Ruling 2012-18, 2012-26 I. File amended return R. File amended return B. File amended return 1032, available at www. File amended return irs. File amended return gov/irb/2012-26_IRB/ar07. File amended return html. File amended return Allocated tips. File amended return   If you operate a large food or beverage establishment, you must report allocated tips under certain circumstances. File amended return However, do not withhold income, social security, or Medicare taxes on allocated tips. File amended return   A large food or beverage establishment is one that provides food or beverages for consumption on the premises, where tipping is customary, and where there were normally more than 10 employees on a typical business day during the preceding year. File amended return   The tips may be allocated by one of three methods—hours worked, gross receipts, or good faith agreement. File amended return For information about these allocation methods, including the requirement to file Forms 8027 electronically if 250 or more forms are filed, see the Instructions for Form 8027. File amended return For information on filing Form 8027 electronically with the IRS, see Publication 1239. File amended return Tip Rate Determination and Education Program. File amended return   Employers may participate in the Tip Rate Determination and Education Program. File amended return The program primarily consists of two voluntary agreements developed to improve tip income reporting by helping taxpayers to understand and meet their tip reporting responsibilities. File amended return The two agreements are the Tip Rate Determination Agreement (TRDA) and the Tip Reporting Alternative Commitment (TRAC). File amended return A tip agreement, the Gaming Industry Tip Compliance Agreement (GITCA), is available for the gaming (casino) industry. File amended return To get more information about TRDA and TRAC agreements, see Publication 3144, Tips on Tips. File amended return Additionally, visit IRS. File amended return gov and enter “MSU tips” in the search box to get more information about GITCA, TRDA, or TRAC agreements. File amended return 7. File amended return Supplemental Wages Supplemental wages are wage payments to an employee that are not regular wages. File amended return They include, but are not limited to, bonuses, commissions, overtime pay, payments for accumulated sick leave, severance pay, awards, prizes, back pay, retroactive pay increases, and payments for nondeductible moving expenses. File amended return Other payments subject to the supplemental wage rules include taxable fringe benefits and expense allowances paid under a nonaccountable plan. File amended return How you withhold on supplemental wages depends on whether the supplemental payment is identified as a separate payment from regular wages. File amended return See Regulations section 31. File amended return 3402(g)-1 for additional guidance for wages paid after January 1, 2007. File amended return Also see Revenue Ruling 2008-29, 2008-24 I. File amended return R. File amended return B. File amended return 1149, available at www. File amended return irs. File amended return gov/irb/2008-24_IRB/ar08. File amended return html. File amended return Withholding on supplemental wages when an employee receives more than $1 million of supplemental wages from you during the calendar year. File amended return   Special rules apply to the extent supplemental wages paid to any one employee during the calendar year exceed $1 million. File amended return If a supplemental wage payment, together with other supplemental wage payments made to the employee during the calendar year, exceeds $1 million, the excess is subject to withholding at 39. File amended return 6% (or the highest rate of income tax for the year). File amended return Withhold using the 39. File amended return 6% rate without regard to the employee's Form W-4. File amended return In determining supplemental wages paid to the employee during the year, include payments from all businesses under common control. File amended return For more information, see Treasury Decision 9276, 2006-37 I. File amended return R. File amended return B. File amended return 423, available at www. File amended return irs. File amended return gov/irb/2006-37_IRB/ar09. File amended return html. File amended return Withholding on supplemental wage payments to an employee who does not receive $1 million of supplemental wages during the calendar year. File amended return   If the supplemental wages paid to the employee during the calendar year are less than or equal to $1 million, the following rules apply in determining the amount of income tax to be withheld. File amended return Supplemental wages combined with regular wages. File amended return   If you pay supplemental wages with regular wages but do not specify the amount of each, withhold federal income tax as if the total were a single payment for a regular payroll period. File amended return Supplemental wages identified separately from regular wages. File amended return   If you pay supplemental wages separately (or combine them in a single payment and specify the amount of each), the federal income tax withholding method depends partly on whether you withhold income tax from your employee's regular wages. File amended return If you withheld income tax from an employee's regular wages in the current or immediately preceding calendar year, you can use one of the following methods for the supplemental wages. File amended return Withhold a flat 25% (no other percentage allowed). File amended return If the supplemental wages are paid concurrently with regular wages, add the supplemental wages to the concurrently paid regular wages. File amended return If there are no concurrently paid regular wages, add the supplemental wages to alternatively, either the regular wages paid or to be paid for the current payroll period or the regular wages paid for the preceding payroll period. File amended return Figure the income tax withholding as if the total of the regular wages and supplemental wages is a single payment. File amended return Subtract the tax withheld from the regular wages. File amended return Withhold the remaining tax from the supplemental wages. File amended return If there were other payments of supplemental wages paid during the payroll period made before the current payment of supplemental wages, aggregate all the payments of supplemental wages paid during the payroll period with the regular wages paid during the payroll period, calculate the tax on the total, subtract the tax already withheld from the regular wages and the previous supplemental wage payments, and withhold the remaining tax. File amended return If you did not withhold income tax from the employee's regular wages in the current or immediately preceding calendar year, use method 1-b. File amended return This would occur, for example, when the value of the employee's withholding allowances claimed on Form W-4 is more than the wages. File amended return Regardless of the method you use to withhold income tax on supplemental wages, they are subject to social security, Medicare, and FUTA taxes. File amended return Example 1. File amended return You pay John Peters a base salary on the 1st of each month. File amended return He is single and claims one withholding allowance. File amended return In January he is paid $1,000. File amended return Using the wage bracket tables, you withhold $50 from this amount. File amended return In February, he receives salary of $1,000 plus a commission of $2,000, which you combine with regular wages and do not separately identify. File amended return You figure the withholding based on the total of $3,000. File amended return The correct withholding from the tables is $338. File amended return Example 2. File amended return You pay Sharon Warren a base salary on the 1st of each month. File amended return She is single and claims one allowance. File amended return Her May 1 pay is $2,000. File amended return Using the wage bracket tables, you withhold $188. File amended return On May 14 she receives a bonus of $1,000. File amended return Electing to use supplemental wage withholding method 1-b, you: Add the bonus amount to the amount of wages from the most recent base salary pay date (May 1) ($2,000 + $1,000 = $3,000). File amended return Determine the amount of withholding on the combined $3,000 amount to be $338 using the wage bracket tables. File amended return Subtract the amount withheld from wages on the most recent base salary pay date (May 1) from the combined withholding amount ($338 – $188 = $150). File amended return Withhold $150 from the bonus payment. File amended return Example 3. File amended return The facts are the same as in Example 2, except you elect to use the flat rate method of withholding on the bonus. File amended return You withhold 25% of $1,000, or $250, from Sharon's bonus payment. File amended return Example 4. File amended return The facts are the same as in Example 2, except you elect to pay Sharon a second bonus of $2,000 on May 28. File amended return Using supplemental wage withholding method 1-b, you: Add the first and second bonus amounts to the amount of wages from the most recent base salary pay date (May 1) ($2,000 + $1,000 + $2,000 = $5,000). File amended return Determine the amount of withholding on the combined $5,000 amount to be $781 using the wage bracket tables. File amended return Subtract the amounts withheld from wages on the most recent base salary pay date (May 1) and the amounts withheld from the first bonus payment from the combined withholding amount ($781 – $188 – $150 = $443). File amended return Withhold $443 from the second bonus payment. File amended return Tips treated as supplemental wages. File amended return   Withhold income tax on tips from wages earned by the employee or from other funds the employee makes available. File amended return If an employee receives regular wages and reports tips, figure income tax withholding as if the tips were supplemental wages. File amended return If you have not withheld income tax from the regular wages, add the tips to the regular wages. File amended return Then withhold income tax on the total. File amended return If you withheld income tax from the regular wages, you can withhold on the tips by method 1-a or 1-b discussed earlier in this section under Supplemental wages identified separately from regular wages. File amended return Vacation pay. File amended return   Vacation pay is subject to withholding as if it were a regular wage payment. File amended return When vacation pay is in addition to regular wages for the vacation period, treat it as a supplemental wage payment. File amended return If the vacation pay is for a time longer than your usual payroll period, spread it over the pay periods for which you pay it. File amended return 8. File amended return Payroll Period Your payroll period is a period of service for which you usually pay wages. File amended return When you have a regular payroll period, withhold income tax for that time period even if your employee does not work the full period. File amended return No regular payroll period. File amended return   When you do not have a regular payroll period, withhold the tax as if you paid wages for a daily or miscellaneous payroll period. File amended return Figure the number of days (including Sundays and holidays) in the period covered by the wage payment. File amended return If the wages are unrelated to a specific length of time (for example, commissions paid on completion of a sale), count back the number of days from the payment period to the latest of: The last wage payment made during the same calendar year, The date employment began, if during the same calendar year, or January 1 of the same year. File amended return Employee paid for period less than 1 week. File amended return   When you pay an employee for a period of less than one week, and the employee signs a statement under penalties of perjury indicating he or she is not working for any other employer during the same week for wages subject to withholding, figure withholding based on a weekly payroll period. File amended return If the employee later begins to work for another employer for wages subject to withholding, the employee must notify you within 10 days. File amended return You then figure withholding based on the daily or miscellaneous period. File amended return 9. File amended return Withholding From Employees' Wages Income Tax Withholding Using Form W-4 to figure withholding. File amended return   To know how much federal income tax to withhold from employees' wages, you should have a Form W-4 on file for each employee. File amended return Encourage your employees to file an updated Form W-4 for 2014, especially if they owed taxes or received a large refund when filing their 2013 tax return. File amended return Advise your employees to use the IRS Withholding Calculator on the IRS website at www. File amended return irs. File amended return gov/individuals for help in determining how many withholding allowances to claim on their Forms W-4. File amended return   Ask all new employees to give you a signed Form W-4 when they start work. File amended return Make the form effective with the first wage payment. File amended return If a new employee does not give you a completed Form W-4, withhold income tax as if he or she is single, with no withholding allowances. File amended return Form in Spanish. File amended return   You can provide Formulario W-4(SP), Certificado de Exención de Retenciones del Empleado, in place of Form W-4, to your Spanish-speaking employees. File amended return For more information, see Publicación 17(SP), El Impuesto Federal sobre los Ingresos (Para Personas Físicas). File amended return The rules discussed in this section that apply to Form W-4 also apply to Formulario W-4(SP). File amended return Electronic system to receive Form W-4. File amended return   You may establish a system to electronically receive Forms W-4 from your employees. File amended return See Regulations section 31. File amended return 3402(f)(5)-1(c) for more information. File amended return Effective date of Form W-4. File amended return   A Form W-4 remains in effect until the employee gives you a new one. File amended return When you receive a new Form W-4 from an employee, do not adjust withholding for pay periods before the effective date of the new form. File amended return If an employee gives you a Form W-4 that replaces an existing Form W-4, begin withholding no later than the start of the first payroll period ending on or after the 30th day from the date when you received the replacement Form W-4. File amended return For exceptions, see Exemption from federal income tax withholding , IRS review of requested Forms W-4 , and Invalid Forms W-4 , later in this section. File amended return A Form W-4 that makes a change for the next calendar year will not take effect in the current calendar year. File amended return Successor employer. File amended return   If you are a successor employer (see Successor employer , later in this section), secure new Forms W-4 from the transferred employees unless the “Alternative Procedure” in section 5 of Revenue Procedure 2004-53 applies. File amended return See Revenue Procedure 2004-53, 2004-34 I. File amended return R. File amended return B. File amended return 320, available at www. File amended return irs. File amended return gov/irb/2004-34_IRB/ar13. File amended return html. File amended return Completing Form W-4. File amended return   The amount of any federal income tax withholding must be based on marital status and withholding allowances. File amended return Your employees may not base their withholding amounts on a fixed dollar amount or percentage. File amended return However, an employee may specify a dollar amount to be withheld in addition to the amount of withholding based on filing status and withholding allowances claimed on Form W-4. File amended return Employees may claim fewer withholding allowances than they are entitled to claim. File amended return They may wish to claim fewer allowances to ensure they have enough withholding or to offset the tax on other sources of taxable income not subject to withholding. File amended return See Publication 505, Tax Withholding and Estimated Tax, for more information about completing Form W-4. File amended return Along with Form W-4, you may wish to order Publication 505 for use by your employees. File amended return Do not accept any withholding or estimated tax payments from your employees in addition to withholding based on their Form W-4. File amended return If they require additional withholding, they should submit a new Form W-4 and, if necessary, pay estimated tax by filing Form 1040-ES, Estimated Tax for Individuals, or by using the Electronic Federal Tax Payment System (EFTPS) to make estimated tax payments. File amended return Exemption from federal income tax withholding. File amended return   Generally, an employee may claim exemption from federal income tax withholding because he or she had no income tax liability last year and expects none this year. File amended return See the Form W-4 instructions for more information. File amended return However, the wages are still subject to social security and Medicare taxes. File amended return See also Invalid Forms W-4 , later in this section. File amended return   A Form W-4 claiming exemption from withholding is effective when it is filed with the employer and only for that calendar year. File amended return To continue to be exempt from withholding in the next calendar year, an employee must give you a new Form W-4 by February 15. File amended return If the employee does not give you a new Form W-4 by February 15, begin withholding based on the last Form W-4 for the employee that did not claim an exemption from withholding or, if one was not filed, then withhold tax as if he or she is single with zero withholding allowances. File amended return If the employee provides a new Form W-4 claiming exemption from withholding on February 16 or later, you may apply it to future wages but do not refund any taxes already withheld. File amended return Withholding income taxes on the wages of nonresident alien employees. File amended return   In general, you must withhold federal income taxes on the wages of nonresident alien employees. File amended return However, see Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities, for exceptions to this general rule. File amended return Also see section 3 of Publication 51 (Circular A), Agricultural Employer's Tax Guide, for guidance on H-2A visa workers. File amended return Withholding adjustment for nonresident alien employees. File amended return   For 2014, apply the procedure discussed next to figure the amount of income tax to withhold from the wages of nonresident alien employees performing services within the United States. File amended return Nonresident alien students from India and business apprentices from India are not subject to this procedure. File amended return Instructions. File amended return   To figure how much income tax to withhold from the wages paid to a nonresident alien employee performing services in the United States, use the following steps. File amended return Step 1. File amended return   Add to the wages paid to the nonresident alien employee for the payroll period the amount shown in the chart below for the applicable payroll period. File amended return    Amount to Add to Nonresident Alien Employee's Wages for Calculating Income Tax Withholding Only   Payroll Period Add Additional     Weekly $ 43. File amended return 30     Biweekly 86. File amended return 50     Semimonthly 93. File amended return 80     Monthly 187. File amended return 50     Quarterly 562. File amended return 50     Semiannually 1,125. File amended return 00     Annually 2,250. File amended return 00     Daily or Miscellaneous (each day of the payroll period) 8. File amended return 70   Step 2. File amended return   Use the amount figured in Step 1 and the number of withholding allowances claimed (generally limited to one allowance) to figure income tax withholding. File amended return Determine the value of withholding allowances by multiplying the number of withholding allowances claimed by the appropriate amount from Table 5. File amended return Percentage Method—2014 Amount for One Withholding Allowance shown on page 41. File amended return If you are using the Percentage Method Tables for Income Tax Withholding, provided on pages 43–44, reduce the amount figured in Step 1 by the value of withholding allowances and use that reduced amount to figure the income tax withholding. File amended return If you are using the Wage Bracket Method for Income Tax Withholding, provided on pages 45–64, use the amount figured in Step 1 and the number of withholding allowances to figure income tax withholding. File amended return The amounts from the chart above are added to wages solely for calculating income tax withholding on the wages of the nonresident alien employee. File amended return The amounts from the chart should not be included in any box on the employee's Form W-2 and do not increase the income tax liability of the employee. File amended return Also, the amounts from the chart do not increase the social security tax or Medicare tax liability of the employer or the employee, or the FUTA tax liability of the employer. File amended return This procedure only applies to nonresident alien employees who have wages subject to income tax withholding. File amended return Example. File amended return An employer using the percentage method of withholding pays wages of $500 for a biweekly payroll period to a married nonresident alien employee. File amended return The nonresident alien has properly completed Form W-4, entering marital status as “single” with one withholding allowance and indicating status as a nonresident alien on Form W-4, line 6 (see Nonresident alien employee's Form W-4 , later in this section). File amended return The employer determines the wages to be used in the withholding tables by adding to the $500 amount of wages paid the amount of $86. File amended return 50 from the chart under Step 1 ($586. File amended return 50 total). File amended return The employer then applies the applicable tables to determine the income tax withholding for nonresident aliens (see Step 2 ). File amended return Reminder: If you use the Percentage Method Tables for Income Tax Withholding, reduce the amount figured in Step 1 by the value of withholding allowances and use that reduced amount to figure income tax withholding. File amended return The $86. File amended return 50 added to wages for calculating income tax withholding is not reported on Form W-2, and does not increase the income tax liability of the employee. File amended return Also, the $86. File amended return 50 added to wages does not affect the social security tax or Medicare tax liability of the employer or the employee, or the FUTA tax liability of the employer. File amended return Supplemental wage payment. File amended return   This procedure for determining the amount of income tax withholding does not apply to a supplemental wage payment (see section 7) if the 39. File amended return 6% mandatory flat rate withholding applies or if the 25% optional flat rate withholding is being used to calculate income tax withholding on the supplemental wage payment. File amended return Nonresident alien employee's Form W-4. File amended return   When completing Forms W-4, nonresident aliens are required to: Not claim exemption from income tax withholding, Request withholding as if they are single, regardless of their actual marital status, Claim only one allowance (if the nonresident alien is a resident of Canada, Mexico, or South Korea, or a student or business apprentice from India, he or she may claim more than one allowance), and Write “Nonresident Alien” or “NRA” above the dotted line on line 6 of Form W-4. File amended return   If you maintain an electronic Form W-4 system, you should provide a field for nonresident aliens to enter nonresident alien status in lieu of writing “Nonresident Alien” or “NRA” above the dotted line on line 6. File amended return A nonresident alien employee may request additional withholding at his or her option for other purposes, although such additions should not be necessary for withholding to cover federal income tax liability related to employment. File amended return Form 8233. File amended return   If a nonresident alien employee claims a tax treaty exemption from withholding, the employee must submit Form 8233, Exemption From Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Nonresident Alien Individual, with respect to the income exempt under the treaty, instead of Form W-4. File amended return See Publication 515 for details. File amended return IRS review of requested Forms W-4. File amended return   When requested by the IRS, you must make original Forms W-4 available for inspection by an IRS employee. File amended return You may also be directed to send certain Forms W-4 to the IRS. File amended return You may receive a notice from the IRS requiring you to submit a copy of Form W-4 for one or more of your named employees. File amended return Send the requested copy or copies of Form W-4 to the IRS at the address provided and in the manner directed by the notice. File amended return The IRS may also require you to submit copies of Form W-4 to the IRS as directed by Treasury Decision 9337, 2007-35 I. File amended return R. File amended return B. File amended return 455, which is available at www. File amended return irs. File amended return gov/irb/2007-35_IRB/ar10. File amended return html. File amended return When we refer to Form W-4, the same rules apply to Formulario W-4(SP), its Spanish translation. File amended return After submitting a copy of a requested Form W-4 to the IRS, continue to withhold federal income tax based on that Form W-4 if it is valid (see Invalid Forms W-4 , later in this section). File amended return However, if the IRS later notifies you in writing the employee is not entitled to claim exemption from withholding or a claimed number of withholding allowances, withhold federal income tax based on the effective date, marital status, and maximum number of withholding allowances specified in the IRS notice (commonly referred to as a "lock-in letter
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Financing Your Education

The U.S. Department of Education provides information on preparing for and funding education beyond high school with details on the federal aid programs. Another source of information on financial assistance is www.finaid.org. Both sites offer calculators to help you determine how much school will cost, how much you need to save, and how much aid you will need.

Paying for College 101

Many state governments have created 529 plans that make it easier for families to save for their child’s education. These plans, which can be sponsored by states or institutions of higher learning, encourage saving for future college costs, and the earnings grow tax-free. There are two main types: “pre-paid tuition plans” and “college savings plans.” Pre-paid plans allow you to pay for your child’s college tuition based on today’s costs, and then pay out at the future (higher) cost once your child is in college. College savings plans allow you to invest money in several investment funds, ranging in risk level, to pay for your child’s college education. For more information about the different types of 529 plans and the plans available in each state, visit collegesavings.org.

Other helpful college planning tips:

  • Pay close attention to state and federal financial aid deadlines. You'll want to file well before the deadline though, so you can receive aid before funds run out.
  • Check the Department of Education's student budget calculator. You can plug in tuition costs, room and board and other expenses along with how much money you have in student loans or grants to get an idea of where you stand financially.
  • Make sure your college bound child gets involved in the process. Point them to College.gov where they can learn to manage their money in college and avoid common scams that target students.

Student Financial Aid

Student Financial Aid is available from a wide variety of sources including the federal government, individual states, directly from colleges and universities, as well as from numerous other public and private agencies and organizations. Whatever the source, all forms of college aid fall into four basic categories:

  • Grants. Gift aid from grants does not have to be repaid and is generally awarded based at least partially on financial need.
  • Work Study. The Federal Work-Study Program (FWS) is a federally funded source of financial assistance used to offset financial education costs. Students earn money by working and attending school. The money does not have to be repaid.
  • Loans. Funds that are borrowed and must be repaid with interest are loans. As a general rule, educational loans have far more favorable terms and interest rates than traditional consumer loans.
  • Scholarships. Offered by schools, local/community organizations, private institutions and trusts, scholarships do not have to be repaid and are generally awarded based on some specific criteria.

Federal Student Aid Information Center

The Federal Student Aid Information Center (FSAIC) can answer your federal student financial aid questions and can give you all the help you need for free. You can also use the FSAIC automated response system to find out whether your Free Application for Federal Student Aid (FAFSA) application has been processed and to request a copy of your Student Aid Report (SAR).

Federal Loan Program Repayment Information

  • Public Service Loan Forgiveness Program.Offers forgiveness for outstanding federal loans for individuals working full time in public service jobs.
  • Income-Based Repayment Plan. Helps to make repaying education loans more affordable for low-income borrowers.
Both programs offer generous benefits, but the rules may seem complex, so it is important to get all of the details. For more information on these repayment options:

Comparing Student Loans

The Consumer Financial Protection Bureau (CFPB) has a Know Before You Owe Student Loan website, developed in partnership with the Department of Education. It provides financial aid shopping sheets that help schools communicate the financial aid options available to students.

The File Amended Return

File amended return Index A Alimony paid, Alimony paid. File amended return Alimony received, Alimony received. File amended return Annulment, Divorce or separation. File amended return Assistance (see Tax help) B Basis of property, death of spouse, Death of spouse. File amended return Business expenses, Business and investment expenses. File amended return C Child tax credit, Child tax credit. File amended return Civil service annuities, Civil service retirement. File amended return Community income defined, Community or Separate Property and Income Community income, special rules, Certain community income not treated as community income by one spouse. File amended return Community property defined, Community or Separate Property and Income Community property laws disregarded, Community Property Laws Disregarded Credits Child tax credit, Credits, Taxes, and Payments Earned income credit, Earned income credit. File amended return CSRS annuities, Civil service retirement. File amended return D Death of spouse, basis of property, Death of spouse. File amended return Deductions Alimony paid, Deductions Business expenses, Deductions Investment expenses, Deductions IRA deduction, Deductions Personal expenses, Deductions Dependents, Exemptions Dividends, Dividends, interest, and rents. File amended return Divorce, Divorce or separation. File amended return Domestic partners, Registered domestic partners. File amended return Domicile, Domicile E Earned income credit, Earned income credit. File amended return End of the marital community, End of the Community Equitable relief, Equitable relief. File amended return ESA withdrawals, Withdrawals from individual retirement arrangements (IRAs) and Coverdell Education Savings Accounts (ESAs). File amended return Estimated tax payments, Estimated tax payments. File amended return Exempt income, Tax-exempt income. File amended return Exemptions Dependent, Exemptions Personal, Exemptions Extensions, Extension of time to file. File amended return F FERS annuities, Civil service retirement. File amended return Form 8958, Community or Separate Property and Income, Identifying Income, Deductions, and Credits, Dividends, interest, and rents. File amended return , Separate Return Preparation Free tax services, Free help with your tax return. File amended return G Gains and losses, Gains and losses. File amended return H Help (see Tax help) I Income Alimony received, Income Civil service annuities, Income Dividends, Income Gains and losses, Income Interest, Income IRA distributions, Income Lump-sum distributions, Income Military retirement pay, Income Partnership income, Income Pensions, Income Rents, Income Separate income, Income from separate property. File amended return Tax-exempt income, Income Wages, earnings, and profits, Income Innocent spouse relief, Relief from liability arising from community property law. File amended return , Equitable relief. File amended return Interest, Dividends, interest, and rents. File amended return Investment expenses, Business and investment expenses. File amended return IRA deduction, IRA deduction. File amended return IRA distributions, Withdrawals from individual retirement arrangements (IRAs) and Coverdell Education Savings Accounts (ESAs). File amended return J Joint return vs. File amended return separate returns, Joint Return Versus Separate Returns L Lump-sum distributions, Lump-sum distributions. File amended return M Military retirement pay, Military retirement pay. File amended return N Nonresident alien spouse, Nonresident alien spouse. File amended return O Overpayments, Overpayments. File amended return P Partnership income, Partnership income. File amended return Partnerships, self-employment tax, Partnerships. File amended return Payments Estimated tax payments, Estimated tax payments. File amended return Federal income tax withheld, Federal income tax withheld. File amended return Pensions, Pensions. File amended return Personal expenses, Personal expenses. File amended return Publications (see Tax help) R Registered domestic partners, Registered domestic partners. File amended return Relief from liability arising from community property law, Relief from liability arising from community property law. File amended return Rents, Dividends, interest, and rents. File amended return S Self-employment tax Partnership, Self-employment tax. File amended return Sole proprietorship, Self-employment tax. File amended return Separate income defined, Separate income. File amended return Separate property defined, Community or Separate Property and Income Separate property income, Income from separate property. File amended return Separate returns Extensions, Extension of time to file. File amended return Separate returns vs. File amended return joint return, Joint Return Versus Separate Returns Separated spouses, Spouses living apart all year. File amended return Separation agreement, Divorce or separation. File amended return Sole proprietorship, self-employment tax, Sole proprietorship. File amended return Spousal agreements, Spousal agreements. File amended return Spouses living apart, Spouses living apart all year. File amended return T Tax help, How To Get Tax Help Tax-exempt income, Tax-exempt income. File amended return TTY/TDD information, How To Get Tax Help W Wages, earnings, and profits, Wages, earnings, and profits. File amended return Withholding tax, Federal income tax withheld. File amended return Prev  Up     Home   More Online Publications