2.1 Withholding of income tax

United States | Commentary

2.1.1 Form W-4

United States | Commentary

2.     Mechanics of payroll

2.1     Withholding of income tax

An employer will withhold federal and social taxes from an employee's compensation through the payroll system. An employee's federal income tax withholding is calculated based on:


    •     the employee's expected marital status on the income tax return that the employee will file for the calendar year


    •     the employee's annual wages, and


    •     certain credits or deductions that will be available to an employee on that employee's income tax return

Payroll Period

Each employer will have a payroll period for which the employer generally pays wages to the employer's employees. Employees are paid for each payroll period, even where the employee may work only some of the days within the payroll period.

2.1.1     Form W-4

In order to calculate the federal tax

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