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Question
Although I am retired from IBM, earlier this year I settled a law suit. The settlement was taxable. It appeared that my old 'regular employee' w2 was used to calculate fed, state, Fica with holding resulting in approximately 40% being with held. My income which was 200k+ filing jointly, is now under 45k/year filing single.
How can I get the withholding lowered before my next and final settlment check in September?
Thank you,
Dave Lovelace
No w-2 0r w-4 was used to calculate this payment. This payment was calculated on supplementary pay scale rates which hare mandated for this type of payment.
Supplementary rates are 25% for federal, 7.65 for fica and medicare plus whatever your state supplementary rate is usually around 7 or 8 percent.
Shirley
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Answers by Expert:
Shirley McAllister, CPP, PHR
Expertise
I can answer payroll questions, payroll tax questions, 401K questions. No stock option questions please and I have some knowledge of other pensions but am most familiar with the 401K pension. I can answer U.S.and Canada payroll questions proficiently and have a good general knowledge of UK and South Africa and some knowledge of Australia and New Zealand Payroll procedures. Please do not ask me homework questions I do not have time to answer them.
Experience
25 years with an international company in the Human Resources, Payroll and Payroll Tax areas.
Organizations
SHRM, APA, I.O.M.A.
Publications
I.O.M.A. and BNA
Education/Credentials
P.H.R., C.P.P., Canadian Payroll Administrator, Successfully passed APA class on UK Payroll Administration.
Boise State University Human Resource Certification
Awards and Honors
APA Hotline Citation of Merit for last 8 years.
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