How to withhold income tax from employee's paychecks
The federal income tax is a pay-as-you-go tax. Employer need to withold income tax from employees' paychecks. Determining Amount of Tax Withheld Using Form W-4
1) The amount an employee earns.
2) The information an employee give the employer on Form W-4.
Form W-4 includes three types of information that the employer will use to figure your withholding.
Whether to withhold at the single rate or at the lower married rate.
How many withholding allowances a employee claims. (Each allowance reduces the amount withheld.)
Whether an employee wants an additional amount withheld.
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