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pkz Donating Member (595 posts) Send PM | Profile | Ignore Tue Sep-09-08 03:28 PM
Original message
Payroll Question/Taxes
I have an accounting degree, and mostly work tax prep now. I am more versed in the W-2 end of the money, if you know what I mean.

My husband has worked for several different contractors in his 35 yr. career.
The company he has been with for the last year though, have calculated his pay in a way I have never seen.

He has already paid out of Social Security for the year, and that has happened before, but not usually til the first week of December.

His income gross for the YTD does not match paying out of SS.

At the very bottom of his stub it says Company Paid Fringe Benefits with a weekly amount deducted that does make it over the SS amount..hmmmmm...so I call corporate payroll division and ask just where this extra $ will show up on a W-2 and they told me that it would not go in Box 1 (Wages)
that the amount is his health care paymts. they make to his Local Union. So I ask will it be called substantiated employee business expense, and put in Box 12 with code L or will it be put in Box 14 as non-taxable benefits. They answered no to both :shrug:

Ok, then why was it added to his wages for SS purposes?
and for the record, the Fed Inc Tax deductions matches his income, not the SS amounts.

I fear we are going to take a major hit coming tax time and I am trying to head that off, any help would surely be appreciated, I have been sweating this since 8 p.m. last night.

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A HERETIC I AM Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Sep-10-08 06:41 AM
Response to Original message
1. You may want to contact the IRS directly.
Your question is an interesting one that may be best answered by the IRS. If you call your local office and speak with one of their staff, you will probably get the correct answer - if not, at least that person should be able to tell you which IRS publication has the answer.

I've always found the IRS to be reasonable and easy to deal with. They want you to have the correct information and they honestly do not want you to pay more taxes than you should.

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