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After reading this chapter, we finally understand all those boxes and how they were calculated on the W-2 form that we received Income Tax Withholding at year s end. What are taxable fringe benefits?
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What is income tax withholding?
Income tax withholding is the amount of an employee's wages that is withheld by their employer for the purpose of paying federal, state, and local taxes.
Who is required to file income tax withholding?
Employers are required to file income tax withholding on behalf of their employees.
How to fill out income tax withholding?
Employers can fill out income tax withholding using Form W-4 provided by the IRS.
What is the purpose of income tax withholding?
The purpose of income tax withholding is to ensure that employees pay their taxes throughout the year, rather than in one lump sum at the end of the year.
What information must be reported on income tax withholding?
Employers must report the amount of wages paid to employees, the amount of taxes withheld, and other relevant information.
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