A hedge fund strategy in which the stocks of two merging companies are simultaneously bought and sold to create a riskless profit. A merger arbitrageur looks at the risk that the merger deal will not close on time, or at all. Because of this slight uncertainty, the target company's stock will typically sell at a discount to the price that the combined company will have when the … [Read more...]
What is an Underpayment Penalty?
Underpayment Penalty A tax penalty enacted on an individual for not paying enough of his or her total estimated tax and withholding. It is a penalty assessed by tax authorities when a taxpayer's withholding and estimated tax payments (plus any overpayment from the prior year) are substantially less than the tax that is owed. The IRS does not assess an underpayment penalty … [Read more...]
Excess Employer Withholding
Excess Employer Withholding When one or more employers withhold more than the aggregate maximum amount of Social Security and/or railroad retirement contributions that should have been withheld from a single taxpayer during a taxation year. Excess employer withholding is When one or more employers withhold more than the aggregate maximum amount of Social Security and/or … [Read more...]
Withholding Allowance
Withholding Allowance An allowance an individual claims on a W-4 Form. Your withholding allowances will determine how much money is taken out of your paycheck each time you get paid, so know how to use them to your benefit.A withholding allowance is mainly used to assist an employer in calculating the amount of income tax to withhold from an employee's paycheck. The more … [Read more...]
What is W-4 Form?
W-4 Form A form completed by an employee he W-4 Form is completed by an employee so the employer can withhold the correct amount of federal income tax from your pay. When you are hired for a new job, you will be required to complete a W4 Form to let your employer know how much tax to withhold.The W-4 form tells the employer the correct amount of tax to withhold from an … [Read more...]