Doug, I'm starting to create my supporting schedule based on one of the example templates, but I'm confused. My schedule lays out every entry on the year-end payroll register (see below w/o amounts), with a corresponding column for any Lawful Money reduction as applicable to each (not shown below). If I may ask some questions to clear this up for me, please:
1) One Lawful Money reduction would be the total amount of all the
deposits made in Lawful Money, correct? In my case this is virtually the same amount as the Net Pay (I missed literally one check - long story).
NO. All deposits are presumed to be in FRNs - the default currency. The main and primary LM reduction amount is all Gross pay received AFTER your first LM demand was made on the record.
2) The Fed Withholding is your Gross Pay withheld towards a tax. However, if you redeemed all or virtually all of the Net Pay then the Fed Withholding is not applicable in that sense (a tax). So can some/all of Fed Withholding be added as an offset? See 3 below relative to this...
NO. IMO, Net Pay is NOT a transaction to be counted, since Gross Pay to you already includes this amount. However, FITW is a transaction. As are the other withholdings.
3) Regarding the text I bolded in your quote above, I believe you are saying that "Other Income" (in this simple example) would be (Net Pay + Fed Withholding). I believe you are saying that "Other Income" should be greater than 'Gross Pay'; or 'Adjusted Gross Income'? How can that be, with all the other non-redeemable deductions in play? Just not seeing it clearly yet.
NO. Gross pay transaction + ALL withholding transactions... IF you made your LM demand as I instructed, which makes it (LM Demand) TRANSACTION-based.
Sorry for my confusion. This is my first-time RILM and I'm trying to comprehend it overall and relative to filling out the 1040. Any help or clarification is most appreciated.
I am sure others are confused too. Let's ALL get this right!
Sincerely,
IMM
Payroll Register entries...
Gross Pay Regular
Gross Pay OT
Gross Pay Bonus
Net Pay
Fed Withholding Tax
SS Withholding Tax
Medicare Tax
State Withholding Tax