
How to calculate taxes withheld from a paycheck
The law requires employers to withhold income taxes from employees’ paychecks. The tax withheld depends on the type of tax. The employee can generally control federal income tax withholding because it is largely based on his filing status, income and number of allowances. However, the government sets the Social Security and Medicare tax amounts. Figuring payroll taxes can be confusing, but once the process is understood, the withholding can be determined.
Federal Income Taxes on a Paycheck
Use Form W-4 and the IRS withholding tax tables to determine federal income tax withholding. The filing status and number of allowances from are on the W-4. Then, use the withholding tax tables (Circular E) for the appropriate tax year to perform the calculation. If the employee has 10 or fewer...