9 Comments

  1. Unknown's avatar

    Also put in something like previously or so far this year or simply before.

    Ahem… The fact that we can so readily come up with wording suggestions seems to indicate that we Do Understand it quite well.

  2. Unknown's avatar

    Withholding is just sort of an estimated advance on taxes. The actual tax to be paid is determined when the return is generated.

    Generally the employee has some control over withholding by the number of exemptions and whatnot. Some like to over-withhold as a kind of savings plan (a very bad one). Under-withholding can result in penalty.

    All US tax info, other countries will doubtlessly vary.

  3. Unknown's avatar

    My understanding is that “taking out tax” is the British equivalent of American “tax withholding”.

  4. Unknown's avatar

    Brian in STL –

    A newly hired employee is supposed to fill in IRS Form W4 Employee’s Withholding Certificate when they are hired and give it their employer. This lets their employer know if the employee is married (files jointly with or separately from spouse) and how many dependents one has so the correct amount of taxes can be withheld from employee’s wages/salary. If the employee’s situation changes (marries, divorces, has a child, loses a dependent, etc) the employee is supposed to fill in a revised Form W4. The employer needs to keep the form on file in case IRS or their state/local government (If the same has income taxes also) comes in on an audit and asks to see the forms or there is otherwise a problem, to cover the employer’s rear end.

    I hate to say this, but in practice – based on my clients at least – very small companies tend to just ask for the info and use it without the formal form. Especially when the business owner and/or family are the only or most of the employees.

    By having the employer keep the form on record if the withholding is incorrect for the employee it is obvious if it is the employer or the employee who has made the error in case penalties have to be imposed by IRS/state/local government for under withholding.

  5. Unknown's avatar

    Also – sorry for getting on the site so late this week (Thursday instead of between Sunday and Tuesday). We did a reenactment last Sunday and after only doing only one other since Covid started – everything was twice as hard – remembering what to take, loading the van, remembering what clothing to wear and what order the clothing has to be put on (put on shift before stays – but socks and shoes before same or will not be able to reach my feet to close my shoes)… Did have nice day back in 1775 doing embroidery and talking to people as my alternate self – Anne Everyman (everamon) – something I have missed. (I only chose my first name – last name had to match Robert’s since we portray a couple – Alexander is the first name he uses. And, no they were not real people – they are the names we picked and lives we invented.)

    So being exhausted by our trip back in time, we fell behind in everything 2023.

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