How do you treat withholding tax in the books?
Like any other accrued liability/account payable, own account is nice, not entirely nessasary. It is charged as part of payroll expense (which it is).
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Answer . All taxes should be withheld on earned wages. If a minor has less than the standard deduction in UNEARNED income then they will not pay any Federal Tax... the sta…te and local taxes depend on the state and locality.
income tax withheld from each paycheck and sent to the state or federal gov't Employer deductions from employees' earnings to pay employees' taxes.
When a person, such as an employer, makes payments to another person, they must withhold and then pay a specified percentage of this payment to the Internal Revenue Service (I…RS). This is called backup withholding . These payments have conditions set by the IRS, and there are many variables regarding what type of payments backup withholding can apply to.. Backup withholding payments can apply to most payments that are reported on an IRS Form 1099. These can include interest payments and payments by brokers, as well as royalty payments. Other payments may include dividends, patronage dividends if at least half the payment is in money, rents, and profits. Commissions, fees, or payments for work undertaken as an independent contractor may also be liable to backup withholding.
There are many ways to do so...questions on why your withholding is what it is should be addressed to whoever is making the calculation, which is done pursuant to the info you… provide on your W-4. AGAIN, IT IS CONTROLLED BY YOU ...NOT SOME OUTSIDE or SET AMOUNT. If you need to adjust it, because your circumstances require more or less to be withheld to approximate your liability after other income, or special dedcutions you may have...that can be done through them.. Understand that many things are withheld from pay, some but not all are tax...and not all people call the same things "tax". Is FICA contributions tax? Many don't think so. Or unemployment contributions? Etc. So you have to define what it is you're speaking about.. The amount wittheld, like the amount of tax actually determined to be due, is dependent on many, many factors...such as your maritial and family status, other income and expenses, how other employer beenfits are handled (like retirement contributions, health and medical, etc., etc). It is very reasonable to say that even 2 people at the same job making the same salary will commonly have very different amounts withheld. .
i had 2 children now i have three if i put all of them on my taxwith holding will they take less taxs out my pay checks
Withholding tax is not required in SAP but this functionality available for the countries where it is required. There are two kinds of Withholding tax, Classic and Extended.
It provides estimated payments toward your eventual liability.. It provides compliance with the law that estimated payments must be made or penalty and interest would be due …with the eventual payment.. It provides cash flow for the government to use to provide services and benefits
Withholding taxes are taxes that are subtracted from a payment by a third party before you receive the payment. Examples of this are: your employer takes taxes out of your p…aycheck before giving you your pay only only gives you what is left of your pay. Or a casino subtracts taxes from a jackpot you won and only gives you what is left. Non-withholding taxes are taxes you have to pay yourself directly to the government. Examples are a check you send with your Form 1040 or a payment you send when you get your real estate tax bill. Remember that withholding taxes do not represent the actual amount of tax you owe. They are just a crude estimate of what you actually owe. The actual amount owed is calculated when you fill out your Form 1040 at the end of the year. Most people do not properly fill out Form W-4 that they give to their employer and so pay much more withholding tax than they need to. Then at the end of the year when they fill out their Form 1040, they get a refund.
Use the tables and instructions in Publication 15: http://www.irs.gov/pub/irs-pdf/p15.pdf and Publication 15A: http://www.irs.gov/pub/irs-pdf/p15a.pdf If you just wan…t to calculate your own withholding, here is a handy online calculator: http://www.paycheckcity.com/NetPayCalc/netpaycalculator.asp
None, of course. Just like there is maximum amount of tax you can pay - based on their is no maximum amount of income you can earn....all withholding is how you pay the tax in… installments when an mployee...if you weren't an employee, but self employed...you would have to make estimated tax payments at least quarterly...and there is no max on that either.
By withholding I will guess that you mean the amounts that you are contributing to your 401K BEFORE income taxes (deferred compensation amount) that will not be subject to the… income taxes during the year and will reduce the amount of your taxable gross wage amount that is reported in box 1 of your W-2 form at the end of the tax year. The deferred contribution amounts will be subject to income tax in future years when you retire and start receiving distribution the taxable distribution amounts from your 401K plan and at that time the taxable amounts will added to all of your other gross worldwide income on your 1040 income tax return and subject to the federal income tax at your marginal tax rate.
Withholding tax comes in various forms and types: The 2 most common are for payroll, where tax is withheld and sent to th appropriate jurisdictions - Federal, State, City an…d even local - depending on what is needed for that particular income. The income taxes are sent to the tax jurisdiction and placed in an account entirely for the benefit of the employee. They are an estimated payment on tax that will be calculated at year end. (Additionally, other payroll requirements of things like FICA, Unemply Insur, FUTA, Workers Comp, etc., etc. may be withheld fro the pay given the employee). THIS TAX IS ENTIRELY IN THE CONTROL OF TE EMPLOYEE/TAXPAYER and just like the tax that will be due at the end of the income period it is an estimated payment on, because of all the variables in calculating tax (like single or joint filing, number of dependents, mortgage interest payments, IRA/401k contributions, etc., etc., etc), there is no specific or even right/required answer to your question. There is also another withholding - called "backup" withholding. It is generally used only for foreigners who may try to avoid paying tax on US source income, and those who faile to provide SS#s or may have had problems reporting income on their annual return in the past. It requires that 20% of any payment (say interest on investments, or even rents, etc) be withheld and paid to the US on their behalf. In which case $107.26 of this amount would be submitted.
Your employers payroll department should be able to give you the correct number that you want for the Mississippi tax withholding and any other required withholding amounts th…at the employer will be required to withhold from your gross pay earnings for the pay period.
Employee income tax (such as PAYE) and other government imposed deductions from dividends, salaries, wages, and other incomes. Withholding taxes are levied at the point of dis…bursement of incomes, and are passed on to the government by the entities collecting them.
So here's where I'm at. I always claimed zero at work and got a bigtax return. I got $8500 or so in 2013. I adjusted it at work(not sure to what) and got $500 more in my pay…check eachmonth. My refund this yea was about $4600. 1770 on state and 2800+on fed. Since it only dropped in half by taking $500 in my check,could I take another $400 or so and try to get it near $0. Tryingto get as little as possible without going into the negative
For a better tax payment, it's necessary to have a clear knowledgeof the common taxes, especially withholding tax and estimated tax.We may be much more familiar with the withh…olding tax in dailylife, because almost all employees need to file the withholding taxfrom income. This works similarly for the self-employed ones in theway of estimated tax. In general, tax comes from individuals andcorporations by the city, state, or country in which the entityresides or operates. When the tax collected is credited to thegovernment of the country's account, we call it federal tax. It isa pay-as-you-go tax and we can pay this tax in the following twoways. 1. Withholding Tax Withholding tax is one kind of the income tax.It means your boss pay it directly to the government from yoursalary. And the amount withheld is a credit against the incometaxes you must pay during the year. According to IRS, there are twodifferent types of withholding taxes. Firstly, every employer inthe United States should file the withholding tax according toemployees' personal incomes. And we call it the U.S. ResidentWithholding Taxes. The other form is the nonresident withholdingtaxes. As long as you gain income within the United States, propertaxes is inevitable. All nonresident citizens, who didn't pass thegreen card or a substantial presence test, must file Form 1040NR ifthey are in a trade or business in the United States during theyear. Meanwhile you can claim standard IRS deduction and exemptionwhen paying U.S. taxes. In a word, withholding tax is necessary formost of us who work in a company. 2. Estimated tax Whether you receive your income from a job,self-employment, or other sources, You must pay estimated taxes onthe income during the year. If your income comes fromself-employment, business earnings, interest, rent, dividends andother sources, estimated tax is a must. In general, we need to pay estimated tax quarterly, typically in 4equal installments. Each period has a specific deadline, and yourpunctuality in the estimated tax helps avoid penalties. Even ifyou've already missed a few installments for estimated tax, youshould still try to pay them as soon as possible. If you are one ofthem, you need to make estimated tax payments with IRS Form1040-ES. â¢ Self-Employed Persons or Sole Proprietor BusinessOwners. Estimated tax payment is necessary if your tax liability ismore than $1,000 for the year, including both part-time andfull-time enterprises. â¢ Partners, Corporations, and S CorporationShareholders. Business ownership earnings require estimated taxpayments as well. And estimated tax payments occur after $500 taxliability. â¢ People Who Owed Taxes for the Prior Year. If you owedtaxes at the end of last year, it probably means that too littlewas withheld from your paychecks, or you had other income thatincreased your tax liability.