For wages paid to nonresident alien employees, you are required to add an amount to the nonresident alien's wages solely for calculating the income tax withholding for each payroll period. Nonresident alien students from India and business apprentices from India are not subject to this procedure. The amounts added to wages should not be included in any box on the employee's Form W-2 and do not increase the income tax liability of the employee.
Also, these amounts do not increase the social security, Medicare, or FUTA tax liability of the employer or the employee. This procedure only applies to nonresident alien employees who have wages subject to income tax withholding. A Form W-4 remains in effect until the employee gives you a new one.
If an employee gives you a Form W-4 that replaces an existing Form W-4, begin withholding no later than the start of the first payroll period ending on or after the 30th day from the date when you received the replacement Form W Exactly how much your employer withholds will depend largely on how much money you make and how you fill out your W While you used to be able to claim allowances, your withholding is now affected by your claimed dependents, if your spouse works or if you have multiple jobs.
You can also list other adjustments, such as deductions and other withholdings. When you fill out your W-4 , you are telling your employer how much to withhold from your pay. A withholding allowance was like an exemption from paying a certain amount of income tax. So when you claimed an allowance, you would essentially be telling your employer and the government that you qualified not to pay a certain amount of tax.
If you were to have claimed zero allowances, your employer would have withheld the maximum amount possible. If you claimed too many allowances, you probably ended up owing the IRS money.
Since the W-4 is far simpler than it has been in the past, it might seem harder to change your total withholding. There are worksheets that come with the W-4 that help you figure out the correct number of allowances to claim.
The more effort you put into figuring allowances, the more accurate your withholding will be. Although it is late in the year, if you were disappointed in the size of your refund or you had an unexpected balance due when you filed your tax return, it is not too late to make changes for These changes may involve decreasing the number of allowances on Form W-4 or asking your employer to withhold an additional amount from your remaining paychecks.
For guidance on claiming tax exemptions on the new Form or figuring out how many allowances to claim on your Form W-4, get help from one of our tax pros. Find a tax office nearest you. The more allowances you claim, the lower the amount of tax withheld from your paycheck. Use the Personal Allowances Worksheet attached to the W-4 form to calculate the right number for you. A single person who lives alone and has only one job should place a 1 in part A and B on the worksheet giving them a total of 2 allowances.
A married couple with no children , and both having jobs should claim one allowance each. Part E of the worksheet, is for those who can claim as Head of Household. For example, a couple with only one single bread winner should claim 2 allowances and file a joint tax return.
Follow the instructions listed in Part G to know how many child allowances to claim. Add up each of the three worksheets separately and fill in the values on the W-4 form where indicated.
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