How Do You Calculate Taxes To Be Withheld?
Depending on the state you live and work in, you may or may not be liable for all of the following tax withholdings. Suffice it to say that all of us are responsible to remit to Uncle Sam federal income tax and withholdings of Social Security and Medicare. Determine your gross pay, either by multiplying your hourly rate of pay times the number of hours you work or by looking to your weekly salary. Deduct your Social Security taxes by multiplying your gross pay by 6.2 percent (2009) and subtracting that number. If you receive $500 a week, you would thus need to deduct $31. Social Security taxes are capped at $106,800 annually, meaning once your gross annual pay rate reaches that figure, you no longer need to have Social Security deducted. Take out Medicare taxes of 1.45% from your gross pay. Using the $500 example, you would deduct $7.25. Determine your federal income tax withholding by first considering your marital status and your allowable deductions. If you are single, claiming a de
