2006-12-04 23:50:36 · 4 answers · asked by mohd amirul syafiq r 1 in Business & Finance ➔ Taxes ➔ Other - Taxes
This means your employer is extimating how much tax you owe (income tax, Social Security, Medicare, state income tax etc.) and taking that out of your paycheck - i.e. they withhold the money from you and send it directly to the government. On average this will take 15-25% of your earned wages. If your employer takes more than your owe, you have to file with the government to get the difference back; they call this a 'refund' but it's really just returning an overpayment.
If you owe back taxes or other money (such as alimony), the government can 'attach' your wages by requiring your employer to withhold additional money which will be sent to whoever it's owed to, less 'serivce' fees penalties and interest.
2006-12-04 23:55:41 · answer #1 · answered by dukefenton 7 · 1⤊ 0⤋
When you receive income, the government withholds a certain portion of it so that when your taxes come due they will be assured of already having it.
At the end of the year, your employer will give you a statement saying how much you earned, and how much the government withheld. You then (or have a paid professional) determine how much you actually owe in taxes. If the government has withheld
too much, you may file for a tax return. If the government didn't withhold enough, you will have to pay a little more.
2006-12-04 23:58:03 · answer #2 · answered by nancy jo 5 · 2⤊ 0⤋
Tax which has to be deducted at source. Which means that if you sell your goods to a certain customer, he will deduct the tax from your actual payment and deposit in the Govt treasury.
2006-12-04 23:58:01 · answer #3 · answered by Dr Dee 7 · 1⤊ 0⤋
Withholding tax are used to secure carpets to floors or pictures to floors. You need to buy them from a hardware store and soak them in water so they will be easy to use.
2006-12-04 23:53:49 · answer #4 · answered by Imperial Grand Podperson 1 · 0⤊ 2⤋