How Do I Calculate Federal Income Tax Withholding from Employee Paychecks?
How Do I Calculate Federal Income Tax Withholding from Employee Paychecks?Answer: All employees must complete Form W-4 at hire to provide the information to the employer for calculating federal income tax (FIT) withholding. How to Calculate the Withholding Amount The amount withheld from an employee’s paycheck depends on: • The payroll period (weekly, bi-weekly, semi-monthly, or monthly), • Whether the employee is single or married, • The number of exemptions claimed by the employee, • The amount of gross pay for the period, and • Any additional amounts the employee requests be withheld. The calculation uses a worksheet in IRS Publication 15-A, Employer’s Supplemental Tax Guide. Here is how the calculation is done: • Find the table for the payroll period your company uses. Let’s say it is a bi-weekly payroll period. • Then look for the ma
Related Questions
- The amount of federal income tax withheld from employees’ paychecks depends on their marital status, the number of withholding allowances (exemptions) they claim on Form W-4, and their projected annual income Q: What is Federal Unemployment Tax (FUTA)?
- An employee has more than one income withholding order and his/her income is not enough to meet all his/her obligations. How does an employer calculate the correct amount to withhold on each case?
- Is it possible to always use the wage-bracket method to calculate an employees federal income tax withholding for a pay period?
