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Form 1099-CAP for Tacoma Washington: What You Should Know
Step 2: We subtract the income tax. Step 3: The total for the tax year is: Step 4: Multiply the resulting amount by your benefit for the year: Step 5: Multiply the result times 12 and write the number as the amount of your tax return. The amount must be subtracted from your gross wage to get the correct weekly benefit amount. Step 6: The amount for the tax year is what you are entitled to under the Sole Proprietorship Rule. Your benefit is the amount that you are paid before the deductions for the workweek and the tax deduction. This is the amount to divide by 12 to find how much you should withhold from your wage check. You can also deduct up to 2,000 from the amount to find your benefit under the sole proprietorship rules. The first 2,000 of the weekly benefit amount is your basic benefits, the remainder is “other” benefits. This is the amount you will need to include in your W-2. The sole proprietorship rules do not treat part-time work more favorably than other work. If you work less than full time at all, you must include 100 in your weekly benefit. If you work more than 60 hours per week, you must deduct 25 from your weekly benefit. If you work more than 40 hours per week but less than 80 hours per week, you will receive full coverage for full time employees and the amount will be calculated from the number of hours worked on the payroll and then divided by the total number of hours. For example, if you work full time for 12 weeks and 50 hours, then divide 50 by 2 to get 50/12 or 250. If you work an additional half-time work week, that would be 2 weeks. Divide 50/2 by two to get 50/12 or 250.
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