Important Reminders Employment Tax Rates and Wage Bases for 2000 Social Security Tax: Tax Rate--6.2% each for employers and employees Wage Base--$76,200 Medicare Tax: Tax Rate--1.45% each for employers and employees All wages subject to Medicare tax Federal Unemployment (FUTA) Tax: Tax Rate--6.2% before state credits (employersonly) Wage Base--$7,000 Hiring New Employees Eligibility for employment.You must verify that each new employee is legally eligible to workin the United States. This will include completing the Immigration andNaturalization Service (INS) Form I-9, EmploymentEligibility Verification. You can get the form from INS offices.Contact the INS at 1-800-375-5283 for further information. Income tax withholding.Ask each new employee to complete the 2000 Form W-4. Name and social security number.Record each new employee's name and number from his or her socialsecurity card. Any employee without a social security card shouldapply for one. (See section 4.) Paying Wages, Pensions, or Annuities Income tax withholding.Withhold tax from each wage payment or supplemental unemploymentcompensation plan benefit payment according to the employee's Form W-4and the correct withholding rate. (If you have nonresident alienemployees, see section 9.) Withhold from periodic pension and annuitypayments as if the recipient is married claiming three withholdingallowances, unless he or she has provided Form W-4P,Withholding Certificate for Pension or Annuity Payments, eitherelecting no withholding or giving a different number of allowances,marital status, or an additional amount to be withheld. Do notwithhold on direct rollovers from qualified plans. See section 9 andPub. 15-A, Employer's Supplemental Tax Guide. Pub. 15-Aincludes information on withholding on pensions and annuities. Information Returns You may have to file information returns to report certain types ofpayments made during the year. For example, you must file Form1099-MISC, Miscellaneous Income, to report payments of $600 ormore to persons not treated as employees (e.g., independentcontractors) for services performed for your trade or business. Fordetails about filing Forms 1099 and for information about requiredmagnetic media filing, see the separate 2000 General Instructionsfor Forms 1099, 1098, 5498, and W-2G. Do not use Forms 1099 toreport wages and other compensation you paid to employees; reportthese on Form W-2. See the separate Instructions for Forms W-2and W-3 for details about filing Form W-2 and for informationabout required magnetic media filing. If you file 250 or more FormsW-2 or 1099, you must file them on magnetic media or electronically. Information reporting call site.The IRS operates a centralized call site to answer questions aboutreporting on Forms W-2, W-3, 1099, and other information returns. Ifyou have questions related to reporting on information returns, call304-263-8700. Nonpayroll Income Tax Withholding Nonpayroll income tax withholdingmust be reported onForm 945, Annual Return of Withheld Federal Income Tax.Form 945 is an annual tax return and the return for 1999 is dueJanuary 31, 2000. Separate deposits are required for payroll (Form941) and nonpayroll (Form 945) withholding. Nonpayroll items include: Pensions, annuities, and IRAs. Military retirement. Gambling winnings. Indian gaming profits. Voluntary withholding on certain government payments. Backup withholding. All income tax withholding reported on Forms 1099 or W-2G must bereported on Form 945. All income tax withholding reported on Form W-2must be reported on Form 941, 943, or Schedule H (Form 1040). Note: Because distributions to participants from nonqualifiedpension plans and some other deferred compensation plans are treatedas wages and are reported on Form W-2, income tax withheld must bereported on Form 941, not Form 945. However, because distributionsfrom such plans to a beneficiary or estate of a deceased employee arenot wages and are reported on Forms 1099-R, income tax withheld mustbe reported on Form 945. For details on depositing and reporting nonpayroll income taxwithholding, see the separate Instructions for Form 945. Backup withholding.You generally must withhold 31% of certain taxable payments if thepayee fails to furnish you with his or her correct taxpayeridentification number (TIN). This withholding is referred to as backupwithholding. Payments subject to backup withholding include interest, dividends,patronage dividends, rents, royalties, commissions, nonemployeecompensation, and certain other payments you make in the course ofyour trade or business. In addition, transactions by brokers andbarter exchanges and certain payments made by fishing boat operatorsare subject to backup withholding. Note:Backup withholding does not apply to wages, pensions,annuities, IRAs (including simplified employee pension (SEP) andSIMPLE retirement plans), section 404(k) distributions from anemployee stock ownership plan (ESOP), medical savings accounts,long-term care benefits, or real estate transactions. You can use Form W-9, Request for TaxpayerIdentification Number and Certification, to request payees to furnisha TIN and to certify that the number furnished is correct. You canalso use Form W-9 to get certifications from payees that theyare not subject to backup withholding or that they are exempt frombackup withholding. The Instructions for the Requester of FormW-9 includes a list of types of payees who are exempt frombackup withholding. For more information, see Pub. 1679, AGuide to Backup Withholding. Recordkeeping Keep all records of employment taxes for at least 4 years. Theseshould be available for IRS review. Records should include: Your employer identification number. Sigulda hotelsAmounts and dates of all wage, annuity, and pensionpayments. Amounts of tips reported. Records of allocated tips. The fair market value of in-kind wages paid. Names, addresses, social security numbers, and occupationsof employees and recipients. Any employee copies of Form W-2 that were returned to you asundeliverable. Dates of employment. Periods for which employees and recipients were paid whileabsent due to sickness or injury and the amount and weekly rate ofpayments you or third-party payers made to them. Copies of employees' and recipients' income tax withholdingallowance certificates (Forms W-4, W-4P, W-4S, and W-4V). Dates and amounts of tax deposits you made andacknowledgment numbers for deposits made by EFTPS. Copies of returns filed, including 941TeleFile Tax Recordsand confirmation numbers. Records of fringe benefits provided, includingsubstantiation. Change of Address To notify the IRS of a new business mailing address or businesslocation, file Form 8822, Change of Address. Private Delivery Services You can use certain private delivery services designated by the IRSto mail tax returns and payments. If you mail by the due date usingany of these services, you are considered to have filed on time. Themost recent list of designated private delivery services was publishedin August 1999. The list includes only the following: Airborne Express (Airborne): Overnight Air Express Service,Next Afternoon Service, Second Day Service. DHL Worldwide Express (DHL): DHL "Same Day" Service,DHL USA Overnight. Federal Express (FedEx): FedEx Priority Overnight, FedExStandard Overnight, FedEx 2 Day. United Parcel Service (UPS): UPS Next Day Air, UPS Next DayAir Saver, UPS 2nd Day Air, UPS 2nd Day Air A.M. The private delivery service can tell you how to get written proofof the mailing date. Telephone Help Tax questions.You can call the IRS with your taxquestions. Check your telephone book for the local number or call1-800-829-1040. Help for people with disabilities. prenota alberghi IkskileTelephone help is available using TTY/TDD equipment. You may call1-800-829-4059 with your tax question or to order forms andpublications. You may also use this number for assistance withunresolved tax problem resolution. Recorded tax information (TeleTax).The TeleTax service provides recorded tax information on topicsthat answer many individual and business Federal tax questions. Youcan listen to up to three topics on each call you make. Touch-toneservice is available 24 hours a day, 7 days a week. TeleTax topics arealso available using a personal computer (connect towww.irs.gov). accommodation in BrugesA list of employment tax topics is provided below. Select, bynumber, the topic you want to hear and call 1-800-829-4477. For thedirectory of all topics, listen to topic 123. TeleTax Topics TopicNo. Subject 751 Social security and Medicare withholding rates 752 Form W-2--Where, when, and how to file 753 Form W-4--Employee's Withholding AllowanceCertificate 754 Form W-5--Advance earned income credit 755 Employer identification number (EIN)--How toapply 756 Employment taxes for household employees 757 Form 941--Deposit requirements 758 Form 941--Employer's Quarterly Federal TaxReturn 759 Form 940/940-EZ--Deposit requirements 760 Form 940/940-EZ--Employer's Annual FederalUnemployment Tax Return 761 Tips--Withholding and reporting 762 Independent contractor vs. employee Unresolved Tax Problems Most problems can be resolved with one contact either by calling,writing, or visiting an IRS office. But if you have triedunsuccessfully to resolve a problem with the IRS, you should contactthe Taxpayer Advocate's office. You will be assigned a personaladvocate who is in the best position to try to resolve your problem. Contact the Taxpayer Advocate if you: Are suffering or are about to suffer a significanthardship. Are facing an immediate threat of adverse action. Will incur significant costs if relief is not granted(including fees for professional representation). Will suffer irreparable injury or long-term adverse impactif relief is not granted. Have experienced a delay of more than 30 calendar days toresolve a tax problem or inquiry. Have not received a response or resolution to the problem bythe date promised. You may contact a Taxpayer Advocate by calling a new toll-freeassistance number, 1-877-777-4778. Persons who have accessto TTY/TTD equipment may call 1-800-829-4059 and ask for the TaxpayerAdvocate. If you prefer, you may write to the Taxpayer Advocate at theIRS office that last contacted you. While Taxpayer Advocates cannot change the tax law or make atechnical tax decision, they can clear up problems that resulted fromprevious contacts and ensure that your case is given a complete andimpartial review. Taxpayer Advocates are working to put service first.For more information about the Taxpayer Advocate, see Pub. 1546,The Taxpayer Advocate Service of the IRS.