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What are Federal Withholding and State Withholding?

April 26, 2017Federal State withholding

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What are Federal Withholding and State Withholding?

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These are income taxes. USC uses the withholding allowances and marital status claimed on your Form W-4 and/or DE-4 to determine the amount of taxes to withhold from your wages for federal and state income tax; the higher your allowance, the smaller the amount withheld. USC uses the “percentage method” to calculate Federal taxes. If you qualify, you may also claim “EXEMPT” from any withholding. The University cannot give tax advice. For further details, visit the IRS Form W-4 Withholding Allowance Calculator.