payroll

A wage garnishment or wage levy is a legal seizure of property. It is an effective method of tax collection used by both the IRS and many States. The IRS or States will issue a wage garnishment to seize all or part of a taxpayer’s wages if a taxpayer does not respond to collection letters or fails to live up to an agreement to re-pay back taxes. A wage garnishment does not take the taxpayer’s financial situation into account and is often thought of by collection agents more as an “attention getter” than a true resolution to a tax problem.

Two important types of returns taxed to the employers are the Employer's Quarterly federal tax return and employer's annual federal tax returns. These two taxes are also termed as 941 taxes and 944 taxes respectively. For the return filed under the form 941 if your tax liability of employer's tax is lesser than or equal to $2,500 then these taxes can be filed along with your returns. However if the amount is above $2,500 then you must file these taxes along with the 941 form periodically according to your deposit schedule which can be monthly or semi-weekly or other such terms.

Most people are not overly concerned about being selected for a state tax audit. However, it pays to be careful. There are ways to ensure that one’s tax return does not come under state tax audit. Those who work from home should remember that the Internal Revenue Service (IRS) tends to focus on home office deductions. People who qualify for home office deductions operate their offices as principal places of business that are in regular and exclusive use for business. In other words, a home office should be the place where one spends most of one’s time and make the majority of one’s income.