How Do I Figure The Federal Tax Deducted From My Paycheck?
The best way to determine if the correct amount of money is being withheld from your check for federal tax is to obtain a copy of the IRS Circular E. This publication (available on www.irs.gov) lists the methods by which an employer may choose to calculate your withholding. It can be calculated either using the bracket or percentage methods, with the percentage method generally yielding a slightly lower result. The filing status and exemptions you claim on form W-4 are used as a guideline for this. Your exemptions will reduce the amount of your income considered for tax purposes, where your claim (Married / Single) will determine which table you fall under. If you also want to verify other taxes, consider that the two mandatory employee taxes (social security and medicare) have fixed rates of 6.2% and 1.45% for 2007. Social security tax has a taxable wage base of $97,500, meaning that should you earn more than $97,500 in 2007 you will not be required to pay social security on the remai
Related Questions
- I entered an amount in the federal tax additional withholding amount block. How much money will actually be deducted from my pay each payday?
- Can I have installment payments to repay a refund or to purchase service credit payroll deducted from my paycheck?
- How Do I Figure The Federal Tax Deducted From My Paycheck?
