Payroll Taxes – Withholding

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
Early Attempts at Income Taxation 101
The Present Income Tax Law 102
Introduction – General Principles – Definitions 103
Classification of Taxpayers 104
Purpose of the Income Tax Return – Withholding and Estimated Tax 105
Accounting Period -The Taxable Year 106
Accounting Methods 107
The Cash Basis 108
The Accrual Basis 109
Change in Accounting Method 110
When to File the Income Tax Return 111
Penalties 112
Installment Payment of Tax 112A
Where and How To File Manual and Electronic Filing 113
Who Must File a Return 114
Joint Return of Husband & Wife 115
Separate Return of Husband & Wife 116
Who is considered as “Married”? 117
Special Provision for Married Persons Living Apart 118
Minors 119
The Tax Return Forms and Schedules 120
Payment of the Tax 121
Section II
Introduction 122
Gross Income 123
Deductions from Gross Income 124
Adjusted Gross Income 125
Deductions from Adjusted Gross Income 126
Taxable Income 127
Tax Credits 128
The Filing Requirements for Special Taxpayers 129

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:

  1. 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.
  2. 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

Syllabus

Enroll in Federal Tax Course
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
Early Attempts at Income Taxation 101
The Present Income Tax Law 102
Introduction – General Principles – Definitions 103
Classification of Taxpayers 104
Purpose of the Income Tax Return – Withholding and Estimated Tax 105
Accounting Period -The Taxable Year 106
Accounting Methods 107
The Cash Basis 108
The Accrual Basis 109
Change in Accounting Method 110
When to File the Income Tax Return 111
Penalties 112
Installment Payment of Tax 112A
Where and How To File Manual and Electronic Filing 113
Who Must File a Return 114
Joint Return of Husband & Wife 115
Separate Return of Husband & Wife 116
Who is considered as “Married”? 117
Special Provision for Married Persons Living Apart 118
Minors 119
The Tax Return Forms and Schedules 120
Payment of the Tax 121
Section II
Introduction 122
Gross Income 123
Deductions from Gross Income 124
Adjusted Gross Income 125
Deductions from Adjusted Gross Income 126
Taxable Income 127
Tax Credits 128
The Filing Requirements for Special Taxpayers 129

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:

  1. 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.
  2. 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

Syllabus

Enroll in Federal Tax Course