Module 1: Payroll Taxes and Federal Income Tax Withholding
Federal Income Tax Witholding
Employees complete Form W-4, Employee's Withholding Certificate to determine how much federal income tax to withhold.
The amount of federal income tax withholding depends on
- the employee's filing status,
- the number of dependents claimed by the employee,
- other adjustments including; other income (not from jobs), deductions, and extra withholding, and
- exemptions from withholding that the employee claims.
Review Form W-4 for Alicia Myers. Notice that Alicia is single and does not claim any dependents.