Upon closer inspection, you realize that in addition to federal income tax withholding, the company took out payroll taxes, which leaves you scratching your head.

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The IRS is investigating whether federal tax withholding and reporting requirements were met for gambling profits distributed to 600 members of the tribe from 2006 to 2009.

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And any excessive state tax withholding, when deducted on federal income tax returns, could easily throw them into the wacko federal alternative minimum tax.

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If you believe that you have been misclassified as an independent contractor, you can report it to the IRS using a form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding (downloads as a pdf).

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There is talk of a payroll-tax holiday during December: the federal government would suspend withholding of both the employer and employee share of Social Security taxes.

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With the upper income tax brackets lowered, your employer should begin withholding less money for federal income taxes.

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