NEW WITHHOLDING FORM
By the end of the year, IRS will issue a new Form W-4, which is the form that you turn in to your employers so that they know how much to withhold from your paycheck for state and federal taxes. The new version will ask much more specific information about your income and deductions to calculate appropriate withholding. Instead of just determining a number of exemptions, the form will now ask for your total wages from all employers, investment income, and expected deductions and credits.
This more involved process should make withholding more on-target, a response to the concerns of the many taxpayers who received lower-than-usual refunds this year, or unexpectedly had to pay. However, it also adds complexity and the potential for confusion. I am happy to sit down and discuss adjusting your withholding at work; contact the office anytime to set up a meeting or phone conversation.
SSNs for EINs
As of May, anyone setting up an Employer Identification Number (EIN) for their business will need to provide a Social Security Number (or an ITIN, which is mostly used by non-US citizens). This is intended to prevent fraud by requiring any new company to name an individual as its responsible party. It also prevents existing companies from using their EIN to create another EIN.