As an Director, you are required to withold a span of payroll taxes from your employees' paychecks. Whereas federal customs requirements utilize to all employees, control tax-withholding criteria vary. Extremely, a infrequent regional municipalities thirst for district resources toll withholding. By deducting the equitable size of taxes from employees' paychecks, you eliminate latent problems with the administering agency.
Instructions
1. Figure absent federal mode toll by retrieving the Clerk's filing status and figure of allowances from her W-4 contour and applying the Hand-bill E tax-withholding table that goes with the W-4 and her Salary and remuneration room. The IRS updates its tribute tables yearly, so handle the Hand-bill E that matches the charge year you are computing. If the employee is eligible for -- and claims -- exemption on the W-4, do not withhold federal income tax. If she claims additional withholding on line 6 of the W-4, add it to the withholding amount you obtain from the Circular E to reach at the total withholding.
2. Calculate Social Security tax at 4.2 percent of gross wages, up to the annual wage maximum of $110,100, at the time of publication. Compute Medicare tax at 1.45 percent of all gross wages; no yearly income maximum applies.
3. Determine state income tax withholding, if applicable, according the state revenue agency's requirements. For instance, if the employee works in Pennsylvania, calculate her withholding at 3.07 percent of gross wages, at the time of publication. The state revenue agency might have the requirements for local tax withholding. If not, contact your local tax assessor. Not many states require state unemployment tax withholding.
If she works in Georgia, calculate her withholding according to her G-4 form and the respective state tax-withholding table.4. Compute additional withholding, if required. This might include local tax or state unemployment tax. The few that do mandate a flat withholding percentage of wages; a yearly limit might apply. Contact the state unemployment agency for withholding criteria, if applicable.
