Payroll Taxes – Withholding
Federal Tax Course – Lesson 16
| Introduction | 1601 |
| Why Withholding? | 1602 |
| Who is Required to Withhold | 1603 |
| What Wages are Subject to Withholding | 1604 |
| Board and Lodging Furnished to Employees | 1605 |
| Employees Exempt from Withholding | 1606 |
| The Withholding Allowance Certificate | 1607 |
| Additional Withholding Allowances for Credits and Deductions | 1608 |
| Withholding on Pension and Annuity Payments | 1609 |
| Withholding on Sick Pay | 1610 |
| Withholding on Tips | 1611 |
| Individuals Exempt from Withholding | 1612 |
| Computing the Amount to be Withheld | 1613 |
| Supplemental Wage Payments | 1614 |
| Returns and Payments of the Tax | 1615 |
| Form W-2 | 1616 |
| Form W-4 Submission Sometimes Required | 1617 |
Payroll Tax Withholding:
In the previous assignments we dealt with those provisions of the Federal Income Tax law which affect the personal tax liability of the various taxpayers.
But, as you are no doubt aware, individuals or business firms who are employers have additional obligations and pay additional taxes under the Federal tax laws. These obligations and taxes are commonly referred to as “Payroll Taxes”.
The Federal payroll tax provisions may be conveniently divided into two groups:
- The Withholding Tax provisions under which the employer is required to withhold Federal income tax from the employees’ salaries and wages, and periodically remit the amount withheld to the Treasury.
- The Federal Insurance Contributions Act (FICA) and the Federal Unemployment Tax Act (FUTA) provisions under the Social Security laws.
In this assignment we will discuss the Withholding Tax laws and regulations; the Social Security tax laws are covered in the following assignment.
More in the Federal Tax Course