by Dee
(Indy)
We just started a section 125 plan. I know federal, FICA, FUTA are exempt.
But are state, local and SUI tax exempt as well?
In our 2009 taxes, our tax preparer erred when computing our Federal withholding. As a result, we received a larger refund than we should. IRS has just found this error and is asking for us to repay it. I believe the tax preparer is liable for this payment, but do not know if there is a legal standpoint.
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