Posted on 03/30/2010 9:23:40 AM PDT by TheThirdRuffian
I have an employee who wants me to withold at a fixed percentage, which I think is probably about what he would owe. I can do this easily with my payroll software, and am quite happy to do it, but the goofy W-4 form doesn't anticipate someone being so tax savvy.
Any reason not to do this? What documentation do I need?
Seriously, the only way to do this is buy having your employee adjust his personal withholding exemptions to a level he finds satisfactory. I'm afraid you are opening a whole can of worms if you do otherwise.
Multiply the employee's wages by the desired percentage and divide by the number of pay periods per year.
Then use the paycheck withholding calculator to figure out the number of exemptions that would result in the desired per-paycheck withholding amount. And remember that, for example, if $60 needed to be withheld per paycheck but X exemptions only provided $50, you could use X exemptions with an additional $10 per-paycheck withholding (per the "additional withholding" on the W-4 withholding certificate).
At least, that's how I would do it. Shucks, it's probably how I will figure my withholding amounts when I start working in late June.
I believe a signed request from your employee requesting the fixed percentage should be all the CYA evidence you would need. But you'd be wise checking with whomever does your taxes to be sure.
My accountant just told me to increase my witholding and had a work sheet to show how much.
The employee however is responsible for their taxes. There was a report showing how government employees are over 3 Billion dollars behind in taxes. He maybe just following the government employees example.
Well, under his/her stated allowances find out how much he owes. If he wants more withheld then enter that amount as “additional withholding” or have him change his allowances/exemptions on his W-4.
What payroll software are you using?
He’s hourly (a drilling rig hand) and pay varies considerably.
don’t you have anything better to do? I have been asked this as well and the software only let’s me get so close or there about’s.
Tell him that’s it and move on.
Sure I do.
I also want to accomodate my employees if possible. I’m a good boss.
“What payroll software are you using?”
Not sure, my book keeper told me it has the option of withholding a percentage.
sorry, wasn’t trying to be insensitive. I too do what I can for my guys.
I was just saying we only have so much time and capability and I told my employees, that have asked for that, this is as close as I can get without spending more time.
Then your book keeper can achieve this with “additional withholding” on the W-4 if he/she wants more withheld but the employee has to sign a new one. Not sure why this employee wants to give the government an interest free loan. Best of luck.
I AGREE WITH RABSCUTTLE, who said it much more clearly than I might have been able to.
Thanks!
I cut-and-pasted your post and told Jorge to deal with it.
I can see why he wants a straight percentage. I used to get a decent sized bonus in June based on my performance in the previous year. Since it got taxed as if it were a weekly paycheck, my take-home was only about 30% of the gross. Not fun. I hope your guy can work things out.
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