For a non qualified pension plan it is required a 20% (for federal taxes) withholding for taxes and X% for State, depending on the State you live.
Income averaging was repealed in 1986 for all but farmers and fishermen, plus a specific type for lump sum distributions.
The income tax is what is paid by "withholding of tax" from someones payment/pay. Other taxes or charges, like insurance, worker comp, etc may be [apd by withholding the amount from payment/payroll. There is really no such thing as a tax on withholding.
yes
Classic Withholding Tax applies to the practice in some countries for people paying invoices to hold back a certain portion of their payment for withholding tax purposes. The United Kingdom is one of the countries the utilizes the Classic Withholding tax method.
Yes, IRA distributions are taxable. You do not pay tax while the money is in the account, but you pay tax when you withdraw the money.
Income averaging was repealed in 1986 for all but farmers and fishermen, plus a specific type for lump sum distributions.
Check with your tax advisor. There may be options in accepting payment over time as an annuity rather than as a lump sum. You could also fund your IRA which would reduce the tax burden. If you accept a lump sum, the tax withholding may be as much as one third of the total.
It uses withholding because it needs a steady stream of income to pay for its expenditures and also because most people would not save enough money to be able to pay their taxes all in one lump sum after the end of the year.
The advantage of a lump sum settlement is that one does not have to pay tax on it. The money has already been paid, so there is no worry about arrears.
A tax based on population is called a head tax. It is also referred to as a lump-sum tax or a poll tax.
If your marginal tax rate is 35% the amount of federal income tax would be 21000.
Withholding tax is not required in SAP but this functionality available for the countries where it is required. There are two kinds of Withholding tax, Classic and Extended.
The income tax is what is paid by "withholding of tax" from someones payment/pay. Other taxes or charges, like insurance, worker comp, etc may be [apd by withholding the amount from payment/payroll. There is really no such thing as a tax on withholding.
yes
Classic Withholding Tax applies to the practice in some countries for people paying invoices to hold back a certain portion of their payment for withholding tax purposes. The United Kingdom is one of the countries the utilizes the Classic Withholding tax method.
This depends on what type of tax it is, lump sum or marginal.Lump sum: a lump sum consumption tax would not affect the general level or composition of consumption because fixed quantities do not affect optimal consumption-savings decisions.Marginal tax: if the marginal tax increased (i.e.) a general sales tax increase), it would decrease overall consumption because the tax would be an increase in the cost of consuming, and thus encourage the consumer to save more money and consume less.
Marginal cost is the cost to the firm of producing one more unit of output - it is affected by the same factors that affect variable costs. A lump sum tax does not affect this relationship whereas a tax on the marginal unit produced will; such as an ad valorem tax. If a lump sum tax is imposed on a producer this will NOT affect his profit maximising decisions as his output decisions are always based on the margin. He will set MC = MR as per normal but will endure lower profits as the AC has increased. It is important to understand the distinction between marginal and average in this case and the consequences that marginal tax has on behaviour of the firm.