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Medlin Software

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About Medlin Software

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  1. Medlin Software

    Draft W4 for 2019

    Yep, back in the old days, most were receiving large refunds (those who were filling out their form "straight up"). A few politicians later, the ones who made changes to make net pay appear bigger as an election point, and we have many who are cutting it close, or going negative, with a "straight up" W4 form. Those that actively manage their withholding, at least honestly, will always come out fine (or as desired). The ones who just go with the standard entries, they are the ones who are at risk, although less likely so starting with the 2019 form (since many will not delve into things like child credits). The recent ones I dealt with are KY (lowered withholding, raised sales tax, for a net tax increase - since no government ever takes a pay cut) and ID, which altered their withholding calculations to make "allowances" mean child tax credits, without requiring employees to provide an updated W4 (so many are now effectively taking a child tax credit for self and spouse), and the ID "W4" instructions actually create a form which is invalid for federal use, even though it is what ID suggests... But, as I get older, I accept what will be will be, and understand complication is good for me.
  2. Medlin Software

    Draft W4 for 2019

    It may help for the remainder of 2018, but for 2019, there will be the new W4 form to deal with... For most here, it will be learning how to assist clients in filling out the new form. While I do not do many tax returns, the new W4 form appears easier (for a tax preparer) to provide numbers for, since the employee can include exact figures of additional income and credits to consider for withholding calculations. Yes, it is different, but change does equal income, for those of us on the business side...
  3. Medlin Software

    Draft W4 for 2019

    We always remind employers it is not the employer's place to discuss how to prepare a W4. That is what the employee's tax person can be paid to help with, if the employee needs help. Looking at the form, I suspect most "normal" employees will not need special instruction, provided they even submit a new form. The other employees have likely been dealing with management of their withholding before, and have the means to create a valid new form. For the calculation, the IRS is giving a clue (via the W4 instructions) how the calculations will be different, with a section titles "Instructions for Employer". For computerized payroll, no real problem calculating. For those using tables, more steps, but speed is not likely important to those using tables :). The tables will still have allowance columns, as it was important to not require new W4 forms. Spit balling, I will probably add W4 setup for the new W4 "lines". The existing field to enter allowances can remain, as a visual clue as to the 2019 defaults, and to also show the value entered prior to 2019. If any numbers are added in the new lines, the allowances will be set to the defaults. I would rather not show the allowances if a new W4 is used, but many employees like to check their checks, and most will use the tables. I think for clarity, the new line figures will need to somehow be reflected on the stub, meaning the employee will have the means to reverse calculate their withholding. Not sure exactly how yet, but it should not be difficult. Probably some way to show the wages, the adjustments, and the total used for taxable.
  4. Medlin Software

    Draft W4 for 2019

    The new form, to get a flat dollar amount, one could enter a large figure in 6 and or 7, enough to get withholding to zero (based on the calculations), then enter the desired amount per check in 9.
  5. Medlin Software

    Draft W4 for 2019

    This type will likely be the ones who need zero assistance, other than maybe, if they ask, to "not" enter any figures in 5, 6, 7, 8, or 9. --- There is simply a large amount of misinformation about W4 already. I recently had the "privilege" of teaching a local quasi government agency. They provide supported work training. Their clients earn min wage, for a short time while training. Most, if not all, do not work enough to even be required to file a return, and most do not have the knowledge to do so even if they were required (meaning they are likely paying someone to manage their affairs, or are conserved). The agency was not even asking for W4 forms, somehow thinking it was easier to use single zero for all. (Probably true, as asking for a W4 would no doubt have involved office time.) I had one person submit a proper form marked as exempt. This caused a phone call, where the agency was not so subtlety asking me to not use the form, since the agency would have to send it to the IRS because it was marked as exempt. I could not hold back, and ranted about screwing those who need the couple of dollars now, not later, and that their "policy" was likely costing their clients money, as many would not file a tax return (for the refund), or those that did, were having to pay for (in money or time) an unneeded return, which could cost more than the refund. I then pointed out it has been years since the IRS required any employer to forward a W4...
  6. Medlin Software

    Draft W4 for 2019

    It looks as if just marking a reasonable "status" will be a safe course. The withholding calculations appear to factor in the standard deduction (the reason for the status, and for deducting the standard deduction if using line 6. For most, meaning those who do not seek professional advice, the new form will be harder to get to a balance due situation. For those seeking advice, it appears no more difficult to get accurate than current. I have increased my "harping" on employers requiring a federal W4 form, and a separate form (W4, or whatever the state requires). For safety, NO MORE one form for both! Separate forms remove any conflicts, since it will take years for states which use any part of federal calculations to come up with their own changes. One state has already screwed up, since they are saying to use the federal W4 with additional entries, which actually invalidates the form for federal purposes... (Note, my perspective is heavily tilted towards protecting employers, and using invalid W4 information can cause harm to the employer.)
  7. Medlin Software

    Draft W4 for 2019

    Ha ha, it will never get easier... Looking only at the form, my guess is employers will have to have a way to input - in addition to the current ability for the employee to ask for additional withholding - additional "untaxed" income (which will then be added to the earnings before tax calculation). Annualized Wages + Line 5 + Line 8 = Annual taxable income (as earned and declared by employee) Calculate withholding (annualized) Less Line 6 and Line 7 Divide by paydays per year Add Line 9 to get withholding on current check ---- Or, by pay period after dividing the W4 annual employee figures by paydays per year. --- No "allowances" means the "old somewhat allowed" way of indicating a specific amount per check (high allowances, desired amount as "additional") will be gone.
  8. Medlin Software

    The List......

    The largest raised dough I made were the max diameter of the proofer/fryer screens, 2ft x 2ft cooked. Impossible to flip without damage, so they were dunk fried and did not have the white line around them.
  9. Medlin Software

    The List......

    I may dust off my custom cutter and make some, but as an old (long ago, not age!) dough slinger, I only truly enjoy donuts I make... and they have to be hand rolled, cut, and fried, not put through a sheeter or any other automation.
  10. Medlin Software


    Have received foster care payments, respite care payments, and adoption assistance, none of which were reportable/taxable to us. It has been many years, but I have faint memory of doing the research. There must be some official phrase, term, or title for the payments which you can research.
  11. Medlin Software

    Kentucky to a flat 5%

    Several states actively "took" the perceived federal savings. At least one state, by doing nothing, also got a "raise". That's the rub, so many only look at one piece of the puzzle, and some think taxes can actually go down. Tax planning has to take all items into account, such as I am learning from a specialized group who live in their RV full time, and can domicile wherever they wish. The one caveat for the RV perspective is health care, especially if not yet on Medicare. The main states RV'ers use are the obvious, the ones with no income tax. Those states generally also have lower vehicle registration fees, among other things beneficial to those not worried about actually living in their domicile state.
  12. Medlin Software

    I love this new client!

    Could be they were well taught by their former provider, either way, enjoy!
  13. Medlin Software

    Kentucky to a flat 5%

    "You can bet it is not a decrease or the Kentucky State government would not have done it." That is always my point. There is no chance a government will ever approve anything which in some way does not give the government a raise. Just the reality, not a comment on any business (government is a business).
  14. Medlin Software

    Kentucky to a flat 5%

    KY appears to be going to a flat 5% tax rate (instead of brackets). In addition, sales tax has been added to 17 prior exempt items, and cigarette tax nearly doubled, which most wonks have calculated will raise income for the state. Interestingly, one of my customers wanted to argue how I "bought the kool-aid of the liberals" because I too see it as an actual tax raise (overall) on all but the very highest earners. I foolishly tried to explain taxation NEVER goes down as government has a cost, and the cost never goes down, so taxes or debt (income) has to go up... Most reports show the result as a tax hike on all but the top 5% of KY earners. I found a few who claim it will reduce KY's income, but those are the ones I do not believe...
  15. Medlin Software

    Personal question, kind of

    After quite some time, I figured out to just be very thankful for any successes. I generally do not discuss my work with anyone other than a few close friends, as my "discussion" tends to be either about horrible/awful situations, or terrific successes. Many do not have much success to discuss, and can find it uncomfortable to hear my successes, or to hear the corresponding lows. The part I have constantly work on is to "let go" is how rotten some people can be, and not to be the guy who is always talking about horror stories... After a few decades, I accept my preference for the high/low style, versus the ride the middle. My actual stress time has been compacted into Jan and Feb, but issues can pop up anytime. My family has adapted to my schedule, and supports me. I have also, finally, learned to be able to turn off if needed, and accept the reality is there are no accounting emergencies, all things can be dealt with later, in a calm manner. Maturing in both internal and external age is a great teacher... the older I get, the more I can take life as it comes, and to remember to live it while I have the ability.