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Why is imputed income deducted from your paycheck?
i have imputed income taken out of my check because a have a significant other on my insurance can i use this as a tax deduction
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No. Your employer can neither take your tips (or any part of them), nor deduct money from your wages because of the tips you earn. Furthermore, your employer cannot credit you…r tips against the money the employer owes you. Labor Code Section 351
it is approxamately 31%
The specific amount withheld should be shown on your payment stub or direct deposit receipt, and is labeled FICA. A total of 7.65% of your pre-tax income (6.2% for Social Se…curity and 1.45% for Medicare Hospital benefits) is withheld from each paycheck until you reach the current earnings cap of $106,800. There is no earnings cap for the 1.45% Medicare Hospitalization contribution, so that continues to be withheld regardless of your income. Your employer pays a matching amount from company funds, bringing the total contribution on your behalf to 15.3% of the first $106,800 of salary. If you earn less than the maximum, you can easily calculate your total annual contribution by multilplying your base salary x .0765. For example: A person who earns $35,000 in 2010 will contribute $2,677.50 toward future retirement benefits, and his or her company would match that contribution for a total of $5,355.
a dollar amount that reduces the amount of taxable income...
Voluntar income deduction is money taken from your gross pay that you have control over.
Income that may not be seen as cash, but instead comes in the form of a benefit...sometimes by having another pay an expense...sometimes by having a benefit provided. …Examples: The value of a car provided by your employer that you may use for personal use. That value is imputed income. Likewise, the value of having some other benefits - over $50,000 a year of life insurance provided by your employer (the value of the insurance is imputed income). An employer sponsored (even if what it does just work to make the costs lower) of an on site cafeteria - imputed benefit. Having a below market rate loan...that some employers provide certain employees...the lower interest that they forgoe is a benefit to you...and hence imputed income.
Answer It refers to the garnishment of wages by a creditor for repayment of a debt. States inact their own garnishment laws, the maximum amount allowed… by federal law is 25% of disposable income the first $154.50 of weekly wages are totally exempt. A garnishment order for debt can often be modified if "undue hardship" can be proven. These terms DO NOT apply to child support and in some cases spousal maintenance.
On certain (most) types of imputed income...imputed income just being a term for non cash compensation....say a car benefit or over a certain amount of life insurance provided… as part of your employment.....etc. FICA and other payroll taxes may or may not follow the same rules considering it a income, but generally do.
Probably the OASDI (FICA) (social security and medicare taxes) all mean the same tax. The maximum social security contribution limit is 6621 No limit on the amount of earn…ed income that is subject to the medicare tax rate of 1.45% of gross income. If you are a self employed taxpayer then you are responsible for all of your own FICA self employment taxes of 15.3% plus any income taxes on your net profit from your business operation at your marginal tax rate. For those with well above average income, the Federal income tax withholding may be far more than FICA; FICA is capped, but income tax is not.
Yes, imputed benefit income is subject to federal taxation. It is considered Taxable noncash compensation but is not included in gross pay.
Answer . This will depend upon several variables such as the State you live in, the amount of pay and your companies optional elections.\n. \nHere's few items that you can… almost always expect (unless you just make too little):\n. \n1. Federal Income Tax - This is based on a calculation that takes into account the frequency of your pay and the amount of the pay.\n2. Medicare - This is a set amount that will always be applied to your pay.\n3. Social Security - This is a set amount that will always be applied to your pay, however it does have an annual maximum.\n4. Insurance - If you company offers health insurance and you have agreed to the terms, generally a set amount will be applied.\n5. 401k, IRA, Retirement - If your company offers a type of retirement deduction program then this amount will be applied.\n6. Uniforms, loans, etc. - Some companies that require their employees to purchase uniforms will purchase the uniforms for the employee and then charge that amount back to them at a set amount per pay check. This can be also for employer granted loans and/or to pay back advances on previous pay.\n7. State Income Tax - Some stated have an income tax. If you live and/or work in a state that does, then this amount will be deducted as well.\n. \nIf you have deductions that you do not understand or do not think you have agreed to, then you should consult with your supervisor as soon as possible.\n. \nHope this helps.
Because that is how Congress decided to pay for the Medicare program.
In Income Taxes
It affects it because it deduces the income
One should expect for there to be deductions for federal, state, local and social security tax. You may also see deductions for health insurance and your 401k investments.…