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Medlin, I think Edsel's quote is how most of us feel about you -- you know many things and many of us are glad you're here to interpret them for us. But for many of us, I don't believe your plan/plans will work out. For example: While most large companies will simply turn over the problems to a large CPA firm, the majority of businesses are small. Many of their employees WILL ask their employer what to hold out. Practically nobody is going to pay you $50 to fill out something they've never heard of and probably care less about. Employers (and employees) are rushed anyway and they won't take somebody out of service for half an hour to go over it, plus they're unaware/uncaring about who is practicing unlicensed tax. I wouldn't be surprised to see this substitute W-4: a cafe ticket with the following scrawled on it - JOE BLOW 444-55-6666 "HOLD OUT 10% FOR TAXES." But, anyway I expect to see the whole mess scrapped next year. Even IRS employees probably already hate it & the 1,001 crazy questions they'll have to try and answer.

Employees can ask anything, but employers should not assist. No different than an employee (or clients) asking for marital advice. Employers are tasked with plenty of things, and should not do more than tasked.

Catch-22. Employers must use the "no W4" instructions, or follow the last valid W4. Employers have zero ability to honor any napkin, or handwritten request (except for the new instructions for claiming exempt). Employers face liability if they do anything else, including offering to help with a W4 (and I suspect most preparers don't want any employer or other non trained person offering tax advice). Since I work with employers, I have to know the rules they are subject to, and when asked, advise accordingly. yet here, I see the tax preparer perspective, which does not always align with the rules for the employers. Likely, nothing will change, as there is no financial incentive, but I will continue to try to educate! I just cannot get it through my thick skull how it is any more time consuming for a preparer to recommend legal W4 settings versus giving something the employee cannot actually use (and when attempted, causes conflict with the employer who follows their rules). I get asked often (daily this time of year, and likely multiple times per day in January) what an employer should do when an employee requests a flat percent, or a dollar amount for the year. My answer will remain the same, employer can provide the form and instructions, but is not to help fill out the form, or honor anything other than a valid W4 form. (Yes, there is online training for employers to learn what is valid, since the liability is not to be ignored.) While my opinion hardly matters, the new W4 form, under the current administration's rules, is an improvement, as removing allowances is a good idea, and adding very direct means to indicate credits and other items to alter withholding allows for more accurate withholding. Most complaints are about "change" in general, and the delay in implementation was caused by some unfounded privacy concerns. Of course, the issue would likely be moot, except for the continuing trend of the administration to play with the calculations to try fool voters (and the politicians must be convinced it works, since it continues) into believing they are making more money... The issue is this time, the administration cut the rates low enough to actually cause those who do not manage their withholding (far too many) to not only not get a fat refund, but to owe! Personally, I got many complaints that I must be using incorrect calculations, since employees were complaining about owing. I am certain I lost customers over this, as they just changed instead of accepting the truth. I suspect there was more churn than usual in the tax prep industry as well, for the same reason. Small businesses are the ones I most worry about, as they do not always have the experience to keep them as protected as they can be. We have discussed this before, such as when a preparer's client has an "employee" who is being paid as a contractor, and the consensus is usually to have the "employee" eat the taxes the employer is avoiding, and while usually unspoken, work without benefit of UI or WC coverage.

The Org and startup costs, $5000 ea, are deducted in the year the business becomes operational. Anything over $5000 fro ea., is depreciated over 15 yrs starting with the month the biz begins operations. Anything over $50,000 is phased out. The reason you see new business locations open without much promotion and the Grand Opening taking place a week or 2 later is so the promotional cost is not considerd a startup cost and can be written off, rather than depreciated, or worse, phased out.

The employer should do no such thing! Employers should NEVER prepare a W4 for their employee. The employer must follow exactly what the employee directs, via their latest valid W4. There is no item on a W4 which allows for a flat federal amount per pay period (without knowing how to manage several fields, which most employees cannot do). If an employer helps with a W4, giving any advice, then they have inserted themselves into the liability chain, and if tax prep is regulated in their area, have likely offered tax advice without a license/registration. Same goes for "withhold ##%" advice, the employer has no such ability, and the employee will have no idea how to make it happen. Of course, I look at from the employer side, what rules the employer must follow. Unless you prepare payroll and study the withholding regs, such as W4, you would never know, thus my internal insistence on trying to help educate. Not my area, but a thought... W4 prep is an area which could be profitable. For example, $50 to help prepare a federal W4 and a state form (which is a near must now, separate forms), with all or some applied as a credit on their nest tax prep fee. For regular clients, suggested W4 forms with their return, and a paid review in your "slow" season, say early summer, to enhance retention. For getting new clients, maybe a local ad/offer after your vacation once filing season closes, and again in the fall, to try to get their return business. The flaw is some will simply shop for the highest refund, with no thought as to their free loan to the IRS. I have heard that view before, from many, and I understand, but now, with the withholding tables BARELY, if at all, covering liability, and with the states having their own calculation issues, this is an issue few can ignore.