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FAQ - 2013 IRS W-2

What is the purpose of 2013 IRS W-2?
The purpose of 2013 IRS W-2 is to determine how the income from a business is allocated and apportioned to the owner or owner's spouse. To do this, your employer deducts the tax you are required to pay, and uses that amount to deduct from your income all the income from that business. As you pay the income taxes you owe, you also get a check from your employer that is equal to the amount of the taxes you will pay in the future. What is the federal minimum wage? How long does the federal minimum wage stay the same? The U.S. federal minimum wage is actually calculated based on how much an individual makes over a set period of time. If this individual makes 7.25 an hour, they are paid the Federal minimum wage of 7.25. The Federal minimum wage increases in steps that increase at different rates of inflation. For 2013, the federal minimum wage is 7.25 an hour. This minimum will remain the same for the remainder of 2014. For 2017, the Federal minimum wage is set at 9.00 an hour for persons age 20 or older. The Federal minimum wage increases by at least .01 per year, no matter how much wages rise. For example, to calculate the Federal minimum wage, take the average wage for workers 20 years old or older who work full time at the federal minimum wage in each dollar of inflation-adjusted wages. The Federal minimum wage for 2017 is 9.00 an hour for full-time workers age 20 and older. How does the government collect taxes in Texas? If you live in Texas, your tax is made up of the tax rate you pay on your personal income and a tax rate on some of your individual income. You pay taxes based on what type of income you have. A person making 10,000 a year may end up paying more in taxes than someone making 10,000 in business income. What is an employer-employee relationship required for an employer to collect wages? To be an employer, Texas requires you to employ a person who agrees to work for you. This means all the employees working for you must have worked for you in the past or are required to work for you as part of your business. It means you can't hire someone you just met for one day and then fire them. Even if you work for yourself, you must use someone who has been working for you or has come to you through a job ad.
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