With the recent changes to the US tax law, it is more important than ever before to do a check-up on your paycheck, especially when it comes to tax withholding. Here is what you need to know:
What is Tax Withholding?
If you are an individual employed by a company, they are required by law to withhold employment taxes on your behalf. Employment taxes include federal income tax withholding and Social Security and Medicare Taxes.
How Much Tax Should Be Withheld?
The amount of tax withheld by your employee is dependent on two things. The first aspect that needs to be considered is the amount of money that you earned. The second is the information that you give your employer on Form W–4.
Why Check Tax Withholding?
It’s essential that you check tax withholding because, in the event that too little tax has been withheld, you are likely to be hit with an unexpected tax bill or penalty the following year. This crisis is so easily avoided!
Furthermore, did you know that the average refund is more than $2,800? With this in mind, you may prefer to have less tax withheld upfront and receive more in your paychecks.
Who Can Help Me?
If you are unsure regarding the ins-and-outs of tax withholding, you may choose to utilize an income tax withholding calculator online. This will provide you with the information that you need to decide whether or not you need to change your withholding arrangement with your employer. Alternatively, you may opt to take advantage of the services and know-how of a professional accountant and individual income tax preparation specialist.
Contact the expert accountants at Georgen Scarborough Associates, PC today for assistance with your personal tax concerns and filing. We look forward to streamlining the process on your behalf.