How much tax should I withhold as an employee?
As an employee you are required to pay applicable withholding taxes to the government. Your employer is responsible for withholding these taxes from your paycheck and for paying them timely to the proper government agency. While you can determine how much tax to withhold from your paycheck to a certain degree, the government regulates other tax withholding.Federal TaxUpon being hired, you should have completed a Form W-4 (federal tax form) stating your filing status, number of dependents and any additional taxes you would like withheld. Your employer uses this data plus the IRS withholding tax tables to determine your federal tax amount. For example, for 2010, you can go to page 37 of the 2010 IRS Circular E to figure your federal taxes using either the wage bracket or percentage method displayed. Generally, the more dependents you claim, the less federal tax you will pay. But keep in mind that not withholding enough taxes can lead to you owing the IRS. Use the IRS Withholding Calculat
