ITS TAX TIME Y ALL _GIF  15 FEB 14

IRS Recently Updated the Employee Wage Withholding Tables Released for the tax year 2014.  

You may want to update your IRS Form W-4 with your employer early in the year to allow any tax increases to spread out over the entire year. This has less emotional impact than being surprised when your tax returns are prepared and you now owe a surprising “big chunk of change”.

If you do not withhold enough, then you may have to pay when you file your taxes instead of getting a refund.

Updated income-tax withholding tables for 2014 have been released by the IRS and supersede withholding tables issued in December 2013. The newly revised version contains percentage method income-tax withholding tables and related information that employers need to implement these changes.

In addition, employers should continue withholding Social Security tax at the rate of 6.2 percent of wages paid. The Social Security wage base limit increases to $117,000. The Medicare tax rate remains at 1.45 percent each for the employee and employer.

The additional Medicare tax of .09 percent for employees (not employers) remains in effect and should be withheld from employee wages that exceed $200,000 in a calendar year, at the beginning in the pay period in which the employee’s wages exceed $200,000.

Employers should start using the revised withholding tables and correct the amount of Social Security tax withheld as soon as possible in 2014, but not later than February 15, 2014. For any Social Security tax under-withheld before that date, employers should make the appropriate adjustment in workers’ pay as soon as possible, but not later than March 31, 2014.

Employers and payroll companies will handle the withholding changes, so workers typically won’t need to take any additional action, such as filling out a new W-4 withholding form. Individuals and couples with multiple jobs, people who are having children, getting married, getting divorced or buying a home, and those who typically wind up with a balance due or large refund at the end of the year may want to consider submitting revised W-4 forms.

As always, it’s prudent for workers to review their withholding every year and, if necessary, fill out a new W-4 and give it to their employer. For example, individuals and couples with multiple jobs, people who are having children, getting married, getting divorced or buying a home, and those who typically wind up with a balance due or large refund at the end of the year may want to consider submitting revised W-4 forms.

Give us a call if you have any questions about income tax withholding in 2014. We’re here to help.

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Rex at Calif CPA Society Building 2013_JPEG

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A MESSAGE FROM REX CRANDELL’S TAX OFFICE:

Our firm provides income tax preparation and planning services for individuals, families, C Corporations, S Corporations, LLC Limited Liability Companies, Partnerships, domestic partners, for income and deductions generated in California, the United States, and assist taxpayers internationally comply with the USA income tax reporting requirements. Rex Crandell, Esq. also provides services in the area of Estate Planning, Estate Administration, Probate Procedures, Advance Healthcare Directives, Durable Powers of Attorney for Financial Management, and Advance Health Care Directives.

You can contact Rex Crandell’s offices in Walnut Creek and San Francisco, California by calling; 1 (800) 464-6595 Toll Free or (925) 934 6320, Walnut Creek or (415) 982-1110, San Francisco ; and you can contact our office by e-mail at rexcrandell@astound.net
http://www.rexcrandell.com
http://www.taxrexcrandell.com
We would be happy to hear from you.

…FROM REX CRANDELL’s OFFICE…
Please contact our office if you have any questions.
Very truly yours,
/s/ Rex L. Crandell
Rex L. Crandell. CPA, Esq.

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FROM:
Rex L. Crandell Firm
Walnut Creek Office (For UPS/FedEx/OR if Signature Req’d Documents)
3000 Citrus Circle
Suite 207 – West Wing [ Click For MAP TO OUR OFFICE]
(925) 934-6320
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San Francisco Office
425 Market Street
22nd Floor [ Click For MAP TO OUR OFFICE]
(800) 464-6595
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E-Mail: mailto:rexcrandell@astound.net
Internet: http://www.rexcrandell.com
Internet 2nd Web http://taxrexcrandell.com
Internet 3rd Web http://estateplanningreport.wordpress.com
Skype Address rex.crandell
Fax: (925) 934-6325
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All U.S. Mail items [Except if Signature is required]:
P.O. Box 30305-Dept. Web New Tax News Online Report
Walnut Creek, California 94598-9305 United States of America
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ITS TAX TIME Y ALL _GIF  15 FEB 14

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This newsletter is intended to provide generalized information that is appropriate in certain situations. It is not intended or written to be used, and it cannot be used by the recipient, for the purpose of avoiding federal tax penalties that may be imposed on any taxpayer. The contents of this newsletter should not be acted upon without specific professional guidance. Please call us if you have questions.

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