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I'm not getting it either.

However, if what you are saying is that the boss has gotten a tax cut on his business taxes...then that is a reduction in what it costs him to run his business. Odds are is that reduction was the result of his costs going up in other areas, i.e., supplies, utilities, rent, etc. And, while it would be nice to pass this on to his employees...there might not have been much to pass on.

However, your husband's withholding taxes are based on a tax schedule...and whatever elections he made on his W-4. Either he changed his elections or the schedule went down. The only relevence to his being salaried is that his pay check doesn't vary from week to week so the withholding usually doesn't vary. But, the employer doesn't decide arbitrarily how much to withhold. That is determined by your hubby's elections and/or the withholding schedule.

For example...for some reason the deductions for California taxes per the schedule are NEVER enough to cover the taxes owed. So, hubby has an additional $600 taken out each year. And even then, we still owe a few dollars. He makes that withholding election.

His employer just follows the guidelines.

But...all that being said...it is tough times for everyone and your being stressed about all these things adding up is definitely understandable.

Originally Posted by SLance68

What you are saying makes no sense. If the tax withholdings were reduced by the IRS then it would change your dh's take home pay by the reduction amount. It is not a benefit to his boss in any way. Did your DH fill out a new W-4 form and not tell you that he changed his withholding allowances? If he is salary and the taxes were reduced it would increase your dh's pay and decrease the amount paid to the IRS for his withholding taxes it would not go to DH's bosses income. The amount withheld is set by his income level and what the IRS dictates be withheld. I think you need to look at your dh's pay stub each week and see if the numbers match. Look at his final paystub for 2008 and see if the YTD numbers match his W-2. If they don't then call and complain. If you & DH owe the IRS 400.00 that is not the bosses fault it is the way the tax code changes were made - unless dh's boss is head of the IRS he can't change tax codes or withholding amounts.

Okay First of all He NEVER gets a pay stub with his checks. He gets a check plain and simple. He gets the same pay EVERY month NO matter what. So if the goverment gives a tax credit his boss would see it, NOT the employees. Because say it would increase the amount $52 a month he should get (an example) that would be a pain for his boss. He likes things simple. He figures his accountants can worry about whatever. And as far as filling out new forms his boss NEVER gives them ANY! A couple of years ago I had to call the accountant because stuff was soooo outdated. That's what i'm trying to explain his boss is doesn't give a crap as long as it doesn't affect him.
This is a small business. I'm going to call the accountant today to see what the heck we can do about this. And if we need to be filling out more forms etc.
She got mad the last time when she said he was supposed to give us forms etc and he never did. But her hands are tied as far his end is concerned.
I don't know how I can explain it any different to help everyone understand.
All I know is when he makes the same amount and they took out that much less theres a problem. And I know when everytime they pass a tax credit my dh NEVER see it. His boss gets that benefit.

However, your husband's withholding taxes are based on a tax schedule...and whatever elections he made on his W-4. Either he changed his elections or the schedule went down. The only relevence to his being salaried is that his pay check doesn't vary from week to week so the withholding usually doesn't vary. But, the employer doesn't decide arbitrarily how much to withhold. That is determined by your hubby's elections and/or the withholding schedule.

We always claim 0 for this

Originally Posted by whatever

Okay First of all He NEVER gets a pay stub with his checks. He gets a check plain and simple. He gets the same pay EVERY month NO matter what. So if the goverment gives a tax credit his boss would see it, NOT the employees. Because say it would increase the amount $52 a month he should get (an example) that would be a pain for his boss. He likes things simple. He figures his accountants can worry about whatever. And as far as filling out new forms his boss NEVER gives them ANY! A couple of years ago I had to call the accountant because stuff was soooo outdated. That's what i'm trying to explain his boss is doesn't give a crap as long as it doesn't affect him.
This is a small business. I'm going to call the accountant today to see what the heck we can do about this. And if we need to be filling out more forms etc.
She got mad the last time when she said he was supposed to give us forms etc and he never did. But her hands are tied as far his end is concerned.
I don't know how I can explain it any different to help everyone understand.
All I know is when he makes the same amount and they took out that much less theres a problem. And I know when everytime they pass a tax credit my dh NEVER see it. His boss gets that benefit.

Something doesn't sound right here. He should be getting a paystub w/his check whether he is salary or not. I have 2 employees that are salary, the rest hourly and they all get a paystub which details all the deductions.

1) it is illegal for them to withhold employee forms from employees -- it doesn't matter if they are salary or not.

2) your story doesn't make any sense. If the boss is getting a tax break, then that is for the business -- not to pass on to the employees.

3) if you aren't getting the W-4's or any other forms, you can download them online and print them out from your state's website.

4) as far as pay stubs -- he should always get a paystub, unless he is being written a personal check (where it is not signed by a stamp). If that is the case, then it is YOUR responsiblity to make sure that all the deductions are correct, and your responsibility to keep a log of funds coming in and coming out of his check.

5) By law, they have to have some sort of paper trail for each employee.

Does your dh own the business? If he does, then he should be entitled to a tax break or cut, if he doesn't then he has no right to it.

I can't see the gov't using my funds for a loan interest free through the year -- We need things now, not later --

Originally Posted by gmyers

I always thought if they withheld 0 deductions you'd end up paying at the end of the year not get money back.

0 deductions - means no taxes taken out.....you pay at the end of the year...

0 dependents - means they take out the maximum withholding taxes and then you file and settle up at the end of the year.....

Okay I am waiting on accoutant to call back now. She said did explain the tax cut. It will go against his gross. Which is why one year he made less.
That gave me relief.
No My dh does no own his business. His boss have never given them check stubs. Thats why its hard to actually determine what he makes per hour!
I thought it was the law as well but someone else said they don't have to??
He used to give a yearly break down of what they made but we haven't gotten one of those for a few years either.
His boss used to be a great and nice guy. But he compains about everything now. And according to his brother (who USED to be part owner long story) does the books and says there is money in the banks etc. But the boss says there isn't etc. He cancelled out dental ins. without telling us, which I found out he could get into trouble for as well.
Like I said he doesn't do this the right way, he does them HIS way.
Yes we claim 0 exemptions so we won't have to pay into state. Because for some reason (even with me NOT working) if we don't we have to pay in!