Calculate Federal Taxes 2018 - 2019
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Calculate Federal Tax Return Refund
Gross Income Vs. Taxable Income
How to Calculate your Net Income from Gross Income
The Internal Revenue Service (IRS) on behalf of the federal government, requires employers in the United States to withhold Federal Income Taxes, Social Security Taxes, and Medicare Taxes from employee wages.
In general, employers are mandated to withhold taxes on an employee's earnings before any other deductions are taken out. These paycheck earnings prior to withholdings being taken out are considered to be gross pay or income.
Each taxation on the gross income requires a different calculation to determine how much is withheld for each required taxation charge. The three main federal tax withholdings are as follows.
Social Security Tax
The Federal Social Security Tax rate is calculated at 4.2 percent of all gross pay prior to any other taxes being subtracted.
Medicare Tax is taxed at 1.45 percent of all gross pay. It is required for employers to Withhold Medicare Tax from all wages paid to the employee for the year.
Federal Income Tax
The employer is responsible to Calculate Federal Income Tax according to each employee's W-4 data and IRS Circular E's tax withholding tables. The employee's filing status can be found on line 3 of their W-4 form and allowances are found on line 5.
Use the Circular E tax withholding table, plus the employee's gross wages and pay period for proper calculations.