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Most Americans don’t really like thinking about IRS tax withholding; in fact, most people don't like to think about anything that involves the IRS. However, it may be helpful to you - if you know how income tax withholding rates are determined, and in which category you are as a taxpayer. Determining income tax withholding rates is subject to several different types of variables: your marital status, the frequency of your pay period, your number of dependents (or exemptions) and your gross monthly income.
Income Tax Withholding Rate Categories
Income tax withholding rates are primarily determined by your marital status and how often you receive your salary or paycheck. In fact, the IRS supplies employers with table rate guides that specify withholding tax rates based on these factors. For instance, ‘IRS Publication 15 Circular E’, which contains tax rate tables that employers use to calculate your withholding tax, is divided into sections by marital status and frequency of pay period.
When determining the withholding tax rate of employee taxpayers, the employer will use tax rate table guides that show the withholding tax rates for single or married persons and how often you are paid. For example, if you are single and receive your paycheck once a week, your employer would choose the table in
IRS Publication 15 Circular E for: ‘Single - Weekly Employees’.
Your employer will then (based on your number of dependents or exemptions) use the withholding tax rate that is listed in the table. Therefore, employees are divided into categories of: single or married and pay or salary frequency: weekly, biweekly, semi-monthly or monthly. The rates will differ for all categories.
Using the Alternative Percentage Rate Method
Alternatively, your employer may use alternate withholding tax percentage rate method for calculating your withholding tax; however, the percentage rate used is also dependent upon the same types of taxpayer categories. For instance, percentage rates for single or married persons are different, and percentage rates for different pay period frequencies differ as well.
Of course, the most important factor that will affect how much in withholding taxes is withheld from your salary or wages is: how much money you earn. Workers that earn minimum wage will always have less deducted, or withheld, from their paychecks than will workers that earn significantly more.
If you're interested in finding out exactly how much federal withholding tax should be withheld from your paycheck, then you can visit the IRS website and download IRS Publication 15 Circular E. With this guide, calculating the rate for withholding taxes is fairly simple.
Income Tax Withholding Rate Categories
Income tax withholding rates are primarily determined by your marital status and how often you receive your salary or paycheck. In fact, the IRS supplies employers with table rate guides that specify withholding tax rates based on these factors. For instance, ‘IRS Publication 15 Circular E’, which contains tax rate tables that employers use to calculate your withholding tax, is divided into sections by marital status and frequency of pay period.
When determining the withholding tax rate of employee taxpayers, the employer will use tax rate table guides that show the withholding tax rates for single or married persons and how often you are paid. For example, if you are single and receive your paycheck once a week, your employer would choose the table in
IRS Publication 15 Circular E for: ‘Single - Weekly Employees’.
Your employer will then (based on your number of dependents or exemptions) use the withholding tax rate that is listed in the table. Therefore, employees are divided into categories of: single or married and pay or salary frequency: weekly, biweekly, semi-monthly or monthly. The rates will differ for all categories.
Using the Alternative Percentage Rate Method
Alternatively, your employer may use alternate withholding tax percentage rate method for calculating your withholding tax; however, the percentage rate used is also dependent upon the same types of taxpayer categories. For instance, percentage rates for single or married persons are different, and percentage rates for different pay period frequencies differ as well.
Of course, the most important factor that will affect how much in withholding taxes is withheld from your salary or wages is: how much money you earn. Workers that earn minimum wage will always have less deducted, or withheld, from their paychecks than will workers that earn significantly more.
If you're interested in finding out exactly how much federal withholding tax should be withheld from your paycheck, then you can visit the IRS website and download IRS Publication 15 Circular E. With this guide, calculating the rate for withholding taxes is fairly simple.
