Is withholding tax a direct tax?
3 people found this useful
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.
Classic Withholding Tax applies to the practice in some countriesfor people paying invoices to hold back a certain portion of theirpayment for withholding tax purposes. The Un…ited Kingdom is one ofthe countries the utilizes the Classic Withholding tax method.
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
Same thing different words
No...all it is is the method of collecting tax...it isn't a tax. Andof course, if you don't have withholding, like a self employed, you must make estimated payments every quar…ter.. Simply, a large amount of people do not have the understanding or ability to calculate and put aside the money to pay the tax when otherwise due.
In most cases I think they do.. ans . Yes...as required by the W-4 filing and other rules...with substantial penalties for non-compliance.. And of course if you don't work …for an employer, then you must make estimated payments every quarter at least on your own, or have penalty and interest added to your tax.
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.
Federal withholding taxes are taken from the tables in Publication 15. An updated version called Publication 15-T was issued to account for the Making Work Pay Credit: http:…//www.irs.gov/pub/irs-pdf/p15t.pdf
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).
This answer will depend on what type of money is owed and to who. If you are in the FMS offset refund tax program for any legal government debts it is possible for the FMS to …get a part of or your entire refund amount. The Department of Treasury's Financial Management Service (FMS), which issues IRS tax refunds, has been authorized by Congress to conduct the Treasury Offset Program. Through this program, your refund or overpayment may be reduced by FMS and offset to pay any past due child support, Federal agency non tax debts, or state income tax obligations. Go to www.irs.gov and use the search box for Topic 203 - Failure to Pay Child Support, Federal Non Tax and State Income Tax Obligations http://www.irs.gov/taxtopics/tc203.html For additional information, FMS can be reached at 800-304-3107.
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.
Withheld taxes are used for several things. City taxes and state taxes are withheld from one's paycheck. Federal taxes are also withheld from your check. That amount depends o…n number of kids and if one is married. It also depends on if one is head of household.
The withholding tax rate is based on the W-4 form you complete at the beginning of each tax year. This tax that is withheld from your paycheck during the year is merely an est…imate of the taxes you will owe at the end of the year. You are required to pay into the IRS an amount equal to or exceeding 90% of the tax you owed in the previous tax year. If you do not pay this amount of more you may be subject to tax penalties due to underpayment of taxes so you really need to be carefull to pay enough tax during the tax year.