I am not a CPA. I often help out friends and family entering their information into TurboTax when they have extremely basic situations, and refer them to a CPA if they have a more complex situation. I just prepared my father-in-law's 2007 federal and state tax returns. His tax situation is quite simple, just having a W2 and a 1099-INT every year. He rents an apartment and has no deductions large enough to be larger than the standard single filer deduction.
On his W2, I noticed something I haven't seen before. This last year, his company was bought out by another company, and his W2 for this year lists at the top:
The chart below indicates your 2007 voluntary payroll adjustments which are included (+), excluded (-), or did not affect (N/A) your federal wages (Box 1) and state wages.
VOLUNTARY ADJUSTMENTS YTD AMOUNT FEDERAL WAGES STATE WAGES
MED -x -x -x
DEN -x -x -x
401K EE -x -x -x
AD&D -x N/A N/A
GROUP TERM -x N/A N/A
LTD -x N/A N/A
I don't remember seeing this section on his W2 last year, but perhaps I did and forgot about it. I wanted to make a post to make sure no one thought this section is treating him unfairly in any way. The new company hasn't been seen by most of its employees as treating them very fairly, but from the company's point of view, the purchased company was in financial troubles and is in an industry being hit hard by these economic times.
I think this section is proper, and it's just giving details on the company's cafateria plans that are being used by my father-in-law, and it's listing the deductions being taken out of his paycheck so he has medical, dental, 401k contributions, ad&d whatever that is, group term life insurance, and long term disability coverage? (Cafateria plan might technically be the wrong term, because I'm not sure if the new company would allow him to keep the wages if he tried cancelling coverage of one of the items. Either way, he needs all of those coverages.)
On his W2, I noticed something I haven't seen before. This last year, his company was bought out by another company, and his W2 for this year lists at the top:
The chart below indicates your 2007 voluntary payroll adjustments which are included (+), excluded (-), or did not affect (N/A) your federal wages (Box 1) and state wages.
VOLUNTARY ADJUSTMENTS YTD AMOUNT FEDERAL WAGES STATE WAGES
MED -x -x -x
DEN -x -x -x
401K EE -x -x -x
AD&D -x N/A N/A
GROUP TERM -x N/A N/A
LTD -x N/A N/A
I don't remember seeing this section on his W2 last year, but perhaps I did and forgot about it. I wanted to make a post to make sure no one thought this section is treating him unfairly in any way. The new company hasn't been seen by most of its employees as treating them very fairly, but from the company's point of view, the purchased company was in financial troubles and is in an industry being hit hard by these economic times.
I think this section is proper, and it's just giving details on the company's cafateria plans that are being used by my father-in-law, and it's listing the deductions being taken out of his paycheck so he has medical, dental, 401k contributions, ad&d whatever that is, group term life insurance, and long term disability coverage? (Cafateria plan might technically be the wrong term, because I'm not sure if the new company would allow him to keep the wages if he tried cancelling coverage of one of the items. Either way, he needs all of those coverages.)
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