Voluntary Tax

Posts Tagged ‘Sdi’

payroll tax rates

I am just starting to do payroll for my husbands new company and when looking at his old pay stubs I saw his previous employer was taking out SDI tax. I cannot find this anywhere in my guides or on line, where would I find out if I need to do this? Thank you for any help!!
Thank you for your information. The paystubs are from his job in Washington so any ideas on how to handle the three years SDI was taken from his check?

1099 free payroll check

Many in my work received this settlement check. Im just not sure how to file them for taxes. It is split into two forms a w-2 and a 1099-misc.

Says please keep the attached w2 and 1099 for your 2009 tax return:
Allocated Amount: ,548.01
Amount Not Taxed: {content}.00
Amount 1099: 4.01
Amount w2: 4.01
Fed-SS: .99
Fed-Medicare: .22
State-SDI: .51
State Tax: .44
Federal Tax: 3.50
Misc: {content}.00

Check Amount: 40.35
The paper also says
" 50% of each settlement share is allocated as wages. Accordingly, the wage portion will be reduced by applicable payroll tax withholdings and deductions, and will be reported on an IRS form W-2. The remaining 50% is allocated as interest and penalties. Accordingly, this non-wage portion will be reported on an IRS form 1099"
The check was for 1240.35 not for the amount of 774.01 as it is split into for the w2 and 1099 each.
so now im just cofused

The check was for that amount and looks to have been taxed when i add the w2 for the my taxes it adds money for my return, but when i fill in the 1099-misc it takes it all away as if has not been taxed. Im doing this with HnR block free edition online.
Please help, I have no idea what to do here,
Should i only report the w-2 and not the 1099, nothing at all or both??

irs voluntary tax

Two questions:

1) Many companies require employees to pay State Disability Insurance, SDI, while other require Voluntary Disability Insurance, VDI.

It appears that SDI payments are tax deductible on the Federal return but VDI are not. Why is this?

2) Are benefits paid under each of these plans taxable or non taxable?

thanks