Federal Taxes

[aacandy]

I think I know the answer but just need to recheck on this. The amount of federal taxes taken out of an employees check is based on their deduction and the cummulation of wages over the year.
I have a few employees working part-time and get only 10-20 hours a week. The make approximately $9 an hour and they have different deduction totals. A couple of them are concerned because there is no Federal Income Tax coming out of their bi-weekly pay check.

There won't be any come out until they have made so much wage correct?

Thank you for your help.

aacandy

[Paul Mayer]

It depends on how much they earn in a Pay Period as well as number of exemptions, martial status and the pay period, weekly, monthly etc. Low income earners my not pay any FIT. An example is a Married Employee with 2 exceptions on a Weekly pay schedule would have to earn about $375 before a penny is deducted.

Download Publication 15 from the IRS Website to see the tables.