Magda Abdo-Gomez, Attorney at Law

August 29

Posted By: Magda Abdo-Gomez
Posted In: Tax Withholding
Date: August 29, 2020
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IRS GUIDANCE ISSUED ON PRESIDENTIAL ORDER REGARDING TAX WITHHOLDING

On August 8 the President signed a memorandum directing the Secretary of the Treasury to defer the withholding, deposit, and payment of the withheld portion of social security taxes and railroad retirement taxes. The deferral is applicable for wages/compensation paid during the period of September 1...

April 26

Posted By: Magda Abdo-Gomez
Posted In: Tax Laws - Changes , Tax Withholding
Date: April 26, 2020
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The Employee Retention Credit

The CARES Act provides eligible employers with a retention tax credit if they keep employees on their payroll despite experiencing economic hardship related to COVID-19. The employee retention credit is a refundable credit. Who Qualifies for the Credit? The credit is available to all employers regar...

April 26

Posted By: Magda Abdo-Gomez
Posted In: Tax Laws - Changes , Tax Withholding
Date: April 26, 2020
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- 374

The Paid Medical and Family Leave Credit

The Families First Corona Response Act (FFCRA) requires eligible employers to provide employees paid medical and family leave under the two provisions described below. The FFCRA provides eligible employers refundable tax credits that reimburse them for the cost of providing paid sick and family leav...

July 01

Posted By: Magda Abdo-Gomez
Posted In: Tax Laws - Changes , Tax Withholding
Date: July 1, 2019
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- 476

IRS Releases Draft of new form W-4

An employer is required to withhold federal income tax from an employee’s wages. The employee is responsible for providing IRS Form W-4 to the employer so that the employer will know how much tax to withhold from the employee’s income. Once provided, the Form W-4 is effective until the employee ...

February 04

Posted By: Magda Abdo-Gomez
Posted In: Tax Penalties , Tax Withholding
Date: February 4, 2019
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- 559

IRS Waives Estimated Tax Penalty for Certain Taxpayers

The US tax system is pay-as-you-go meaning that taxpayers are required to pay their taxes during the year. Employees satisfy this obligation by having taxes withheld from each paycheck. The self-employed make estimated tax payments four times a year. The law provides for the imposition of an estimat...

May 02

Posted By: Magda Abdo-Gomez
Posted In: Tax Laws - Changes , Tax Withholding
Date: May 2, 2018
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What you Need to Know About Tax Withholding Under the New Tax Act

Our income tax system is known as a pay-as-you-go system. This means that as taxpayers we pay our income tax liability for the year as the income is earned. For employees, the income tax is withheld from wages as the income is earned. For self-employed persons estimated tax paym...