Conference 7.286::digital

> Unless I adjust my withholding for my regular paycheck to compensate

Bingo!

While I share the view that sometimes things are more difficult than they
need to be, do we always need to moan about things which are within our
own power to adjust?

-Jack

>While I share the view that sometimes things are more difficult than they
>need to be, do we always need to moan about things which are within our
>own power to adjust?

Just seems that since payroll has access to all the info (my plan B 
checks include total year-to-date withholding, salary, etc. from plan
B PLUS regular payroll checks) they could easily withhold the same
percentage for plan B as they do for the regular payroll checks 
instead of less than 1%.

Someone there may be able to direct you to the right 
person

    
    
    I have a plan B car and payroll withholds the proper amount, if they
    didn't, I would be very angry.  It is hard enough to do tax planning,
    but with the added income (improper withholding) it would just make
    December-April just that much more difficult.  If I were you, I would
    send mail messages to Cannon::payroll until the problem is fixed.  The
    only real other alternative is for you to escrow the tax rate
    witholding in a money market or a savings account until December and
    estimate you taxes based on the escrow + tax rate x salary. (what a
    hassile!!!
    
    
    TLA
    
    

RE: .0

Aren't your Busness use of the Plan B car Deductable on your taxes?
If they are then you should be paying no taxes on the money you get
each month. If not then should you really be on Plan B?

RE: .1

AMEN!!!

    You've oversimplified an issue...to realize an actual deduction from 
    taxes of unreimbursed business expenses, I believe you must exceed
    the standard deduction.
    
    Also, you've got to fill out the additional forms, do the accounting,
    pay an accountant, whatever. Reimbursed expenses should NEVER show up
    as income.
    
    (And "whining" is spelled w/o an "e" here in the South.  Amen, brother,
    hallelujah-gobble.)

re: .2, Arlan

> Just seems that since payroll has access to all the info (my plan B 
> checks include total year-to-date withholding, salary, etc. from plan
> B PLUS regular payroll checks) they could easily withhold the same
> percentage for plan B as they do for the regular payroll checks 
> instead of less than 1%.

Yes - you are correct. It "seems" they "could easily" do that. I agree.
But, I have also been in this industry and working with computers for
over 23 years. I spent the first twelve or so of those actually doing
programming. You and I both know that the system in question "has the
data" needed to "do the right thing". But after years of listening to
people tell me "the system can't do that", or "the computer doesn't
work that way", or "there's no way we can change that", or similar
lame excuses, I found that it was far better for my health to walk
away and find out what other means I might have at my disposal to
achieve the desired net result. In your case, it would appear that the
desired net result can be achieved by adjusting your normal payroll
deductions. Should you "have to" do that? Of course not. But if walking
down to, or calling, your PSA and changing your W4 will get the proper
amount withheld to satisfy your financial concerns and at the same time
lower your blood pressure a few points, isn't it worth it?

-Jack

    I think the biggest problem was the legislation by former presiden
    George Bush to reduce the witholding tax, while not reducing the tax
    burden.  I.e. you have more money in your pocket every week, but you
    still have to pay the tax man the same amount at the end of the year.  
    
    An example is that I had a new deduction arrive last year.  The
    previous year I just about broke even.  I figured this year I would get
    a little back for a change..   NOT!
    
    This was done to boost the economy before the election.  I guess it was
    a little late.  :-)

    Something seems goofy.  My plan B check withholds less than it should,
    but MUCH more than $1.xx per week.  It's around $45 per week, for
    Federal taxes alone, then add state and of course social security tax.

    OOPS.  I meant $45 per month.

    re .6
    
    Just to add a little to the confusion, be aware that the monthly
    payment has ALREADY been taxed. Therefore you do not need to consider it
    when figuring your deduction. You do need to use the .08/mile
    reimbursement, however. This gives you a net deduction of .20/per mile
    (assuming you use the standard milage rate method).
    
    Of course this is all subject to the 2% Adjusted Gross "floor" for job
    related expenses. It would also be subject to whether one's total
    itemized deductions exceeded the standard deduction. In my case the
    deduction offsets most of the monthly reimbursement. However it is
    quite possible that many people would  be able to realize no deduction
    at all for car expenses.
    
    And here's another thing you may not have considered. Remember that
    along with income tax, Social Security and Medicare taxes are also
    withheld. You have no avenue at all to try to recover any of these
    taxes. 
    
    If the current rumors are correct, Digital may "help" us reduce this
    tax problem by lowering the monthly reimbursement to $200. :^( 

Okay - I spoke with Payroll and figured out that based on my number of 
deductions, they are withholding the correct amount for the Plan B 
checks since the check is separate from my regular payroll check. The 
only way to fix it is to reduce the number of deductions which will 
affect BOTH my regular check and the Plan B check.... 

re: a few back - I went thru the math on my Fed taxes to claim 
unreimbursed employee expenses but it didn't exceed the 2% limit, so I 
can't deduct any of the expenses for the car... just got hosed this 
year when I didn't expect it...  

Thanks for all the comments.