As I’m finishing W-2s for clients to deliver to their employees, I feel the need to address withholding issues. Several of my clients’ employees have begun preparing their own tax returns using a variety of tax preparation software packages.
Consequently, I have received calls, texts, and emails from clients about their employees owing money to the IRS and/or the State tax department. One of the primary reasons employees seem to owe taxes on self-prepared returns, other than data entry errors on tax software, is under withholding income taxes.
If either your tax preparation software or your paid professional tax preparer says taxes are due because of under withholding, now is the time to address the issue, while still fresh in your mind. Below is a link which should be quite helpful.