Quickbooks taking out taxes for 2nd job income


B

Bri

Hi.. I have an employee who works for me as a 2nd job. He is earning
$50,000 in his current job and earns about $6,000/yr working for me.

Since his paychecks are small, quickbooks does not take out very much
in taxes. I know I can tell it to take out a specific amount extra,
but I'm wondering if anyone knows of a 'base' or something I can set
the employee at so he is taxed on a $56,000/yr income instead of
$6,000.
 
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T

Tee

Bri said:
Hi.. I have an employee who works for me as a 2nd job. He is earning
$50,000 in his current job and earns about $6,000/yr working for me.

Since his paychecks are small, quickbooks does not take out very much
in taxes. I know I can tell it to take out a specific amount extra,
but I'm wondering if anyone knows of a 'base' or something I can set
the employee at so he is taxed on a $56,000/yr income instead of
$6,000.
The $50k is none of your concern. You are only supposed to tax monies he
earns from *you*. He's already being taxed on the $50k by his primary
employer. If he's not then he's likely getting a 1099. Either way, that's
between him & the other employer. You trying to tax him on that other money
will result in him paying double taxes. I'm fairly certain he doesn't love
Uncle Sam that much.
 
L

Lisa Walston

Tee said:
The $50k is none of your concern. You are only supposed to tax monies he
earns from *you*. He's already being taxed on the $50k by his primary
employer. If he's not then he's likely getting a 1099. Either way, that's
between him & the other employer. You trying to tax him on that other money
will result in him paying double taxes. I'm fairly certain he doesn't love
Uncle Sam that much.
Why are you concerned about his other job? It is up to the individual
taxpayer to insure that enough is witheld to meet his obligation to
the government. He should adjust his withholding at the other job
and/or make quarterly payments directly to the government. He should
also take into consideration what his spouse is having withheld if he
is a married filing joint. He can also let either or both employers
know of an additional amount that he would like to have withheld. If
you try to set up some kind of exaggerated base with a simplistic
system you may well pay in far too much on the employer side for all
your employer obligations. At which point the government earns
interest on your money until it all gets sorted out again. He should
get some good tax advice and fill out his withholding papers per their
instructions. There are too many variables that you do not need to
take in to consideration for him. He will only be mad at you for not
taking out enough money if he has a tax liability. Do not put yourself
in that position. Lisa
 
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L

Lisa Chambers

Bri said:
Hi.. I have an employee who works for me as a 2nd job. He is earning
$50,000 in his current job and earns about $6,000/yr working for me.

Since his paychecks are small, quickbooks does not take out very much
in taxes. I know I can tell it to take out a specific amount extra,
but I'm wondering if anyone knows of a 'base' or something I can set
the employee at so he is taxed on a $56,000/yr income instead of
$6,000.
As pointed out by others in this thread, each employer is obligated to take
out taxes based on what the employee earns from them - you do not have to be
concerned about the employees 'other job'.
Now, if the employee wants to ensure that he does not have a tax liability
at the end of the year, it is up to him to make sure that the W4 forms he
fills out for each employer include only the amount of deductions that he is
entitled to. There is a worksheet on the IRS form that will help him with
this.
It is important to note that it is up to the employee to decide what if any
'extra' amount he wishes deducted. As an employer, you MUST use the amounts
on the W4.
 

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