Regardless of your pay. Should your employer still take out Federal Taxes?

Answer 1

Sort of. Depends upon what tax you're referring to.

The only tax that your employer is required to withhold without regard to your total pay is Medicare tax. That applies to all wages at 1.45%.

Social Security tax is withheld on the first $97,500 (for 2007) in wages for the year and then stops. It re-starts with the first pay period in the New Year.

Income taxes are based upon your income for the pay period and your withholding allowances. Not everyone pays income tax so it's entirely possible that none would be withheld.

Answer 2

Your employer is legally required to take federal withholding out for their employees.

They are also required to withhold social security and state/local if applicable.

It is up to the Federal Tax Table and your claimed exemptions on the w-4 as to the amount withheld.

Answer 3

No. If your pay is low enough they won't take any taxes out because you won't owe any taxes. Happened to me a couple times when I was working min wage as a teen. If you make more but claimed enough exemptions on your W-4 the same thing could happen.

Answer 4

In general, yes, your employer should take out the required payroll taxes. Unfortunately, we have proven that we do not save enough money each year to pay the tax liability on our own.

Answer 5

Only if you tell your employer too, and if you're going to owe, you should or at least make quarterly payments. There may be penalties if you owe and withholding was not uniform or enough to cover what's owed. But Social Security and Medicare is mandatory, always.