Federal Income Tax Withholding Formula for 2012
Yes it’s true, as an employer you are still responsible for the act of withholding federal income tax from the paychecks of your employees. There are no less than three different federal income tax withholding formulas. These amounts can be easily calculated by using a withholding calculator.
The federal income tax withholding formula is way easier than those phrases might lead you to believe. The three federal income tax withholding formulas are as follows:
- The wage bracket method
- The percentage method
- The alternative method