The Internal Revenue Service notes that for tax year 2014, an employee can be paid up to $1,900 in a calendar year before the employer and employee are responsible for paying taxes on the amount. After the $1,900 threshold is reached both employer and employee are responsible for taxes.
The employer and employee are both responsible for a portion of the taxes on the amount paid to the employee. The IRS reports that an employer may choose to pay the total amount of taxes due. The employer can also request that an employee work on a self-employment basis in which case the employee is responsible for all tax amounts due on income. An employee cannot be considered self-employed if the employer provides equipment, direction and determines the time that the employee works. This rule usually applies to household workers and independent contractors.
The Huston Chronicle reports that this rule does not always apply to every situation, as most businesses must report and take taxes from an employees earnings. The Huston Chronicle states that "Federal law requires employers to withhold federal payroll taxes from employees’ pay. This includes federal income tax, and FICA taxes, such as Social Security and Medicare." There is no minimum earning requirement based on this criteria.Learn More
There are a many instances when tax must be paid, such as on income above the amount of the standard deduction from employment or other sources, on capital gains and on gambling winnings. When filing taxes, a payment is necessary if enough tax has not been withheld from various sources.Full Answer >
Box 14 on a W-2 for contains tax information that an employer feels an employee may need that isn't included in the other sections of the form, according to the Financial and Business Services office of the University of Utah. This section may include items like automobile allowances.Full Answer >
According to the Internal Revenue Service, a W-2 generally must be given to an employee no later than January 31, though an employer may be granted an extension of time to provide W-2s under some circumstances. Corrections to W-2s, usually on Form W-2c, can be issued when and as needed.Full Answer >
A W-4 is a form that an employee fills out so that his employer knows how much federal income tax to withhold from his pay. The Internal Revenue Service, or IRS, recommends that a person fill out a new W-4 form each year and when a person's situation changes.Full Answer >