The Majority of U.S. Workers Seek Outside Tax Preparation Assistance
March 16 2005 - 6:00AM
PR Newswire (US)
The Majority of U.S. Workers Seek Outside Tax Preparation
Assistance Nearly 20% of employees don't understand W-4
implications NEW YORK, March 16 /PRNewswire-FirstCall/ -- When it
comes to understanding their income tax options, nearly one-fifth
(18 percent) of employees do not fully comprehend how their W-4
forms impact their taxes and paychecks, according to a national
survey by Hudson. That figure rises to 29 percent when looking at
workers aged 18-29 years old. Additionally, two in every five U.S.
workers (40 percent) would be interested in a tax preparation
support program from their firms if it were offered. Further, just
one-third (34 percent) of workers report that they prepare their
taxes themselves, compared to 55 percent who hire a professional.
Among those who look to outside resources for help, seven in ten
hire a CPA while the remainder choose tax preparation firms. Age
differences are also notable here; as workers get older, they are
more likely to turn to a CPA for assistance. Half of those aged 65
and older use a CPA, compared to 27 percent of those aged 18-29. In
addition, entrepreneurs are also more likely to use a CPA -- 50
percent compared to 25 percent who do it themselves. "The Hudson
survey emphasizes the need for educating employees -- especially
those new to the workforce -- on the subject of taxes and their
implications," says Brendan Flood, chief financial officer and
chief operating officer, Hudson North America. "As their careers
progress and tax preparations likely become more complex, employees
also stand to benefit from additional training, ideally as part of
a program covering financial and retirement planning." Age also
plays a part in determining when individuals file their tax claims.
While nearly half (47 percent) of the U.S. workforce have already
filed their tax forms, only 29 percent of those 65 or older have
filed. In contrast, 62 percent of younger workers (ages 18-29) have
already filed. Additionally, 47 percent indicate they will file
before the April 15 deadline. Only a mere 3% stated they will file
for an extension. However, this number increases to 7% for
entrepreneurs, who also are less likely to file early, as only 34%
have filed thus far. Percent Workers All Ages Ages Ages
Entrepreneur Employed Workers 18-29 40-49 65+ By Private Company
Already Filed 47% 62% 37% 29% 34% 52% Prepare Own Taxes 34% 32% 37%
31% 25% 36% Use a CPA 38% 27% 41% 49% 50% 33% Do Not Understand 18%
29% 14% 18% 13% 21% W-4 The Hudson taxes survey is based on a
national poll of 1,890 U.S. workers and was compiled by Rasmussen
Reports, LLC, an independent research firm
(http://rasmussenreports.com/). Hudson, one of the world's leading
professional staffing, outsourcing and human capital solution
providers, also publishes the Hudson Employment Index(SM), a
monthly measure of the U.S. workforce's confidence in the
employment market. Next month's Hudson Employment Index SM will be
released on March 30, 2005. Hudson Hudson delivers specialized
professional staffing, outsourcing and human capital solutions
worldwide. From single placements to total solutions, the firm
assesses, recruits and develops talent to meet the specific
business needs of each client. Global practice areas include
Accounting & Finance; Engineering, Operations & Scientific;
Healthcare; Human Resources; IT & Telecommunications; Legal;
and Sales & Marketing. Hudson is a division of Hudson Highland
Group, Inc. (NASDAQ:HHGP) one of the world's leading professional
staffing, retained executive search and human capital solution
providers. More information is available at http://hudson.com/.
DATASOURCE: Hudson CONTACT: Jennifer Bernhart of Hudson,
+1-813-890-7379, ; or Anshula Ahluwalia of Ogilvy Public Relations,
+1-312-397-6074, , for Hudson Web site: http://www.hudson.com/
http://rasmussenreports.com/
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