Ensure Accurate Employer Tax Withholdings
This tax season, some taxpayers will be shocked to learn that they owe money to the IRS, perhaps because their employer didn’t withhold enough from their wages. This can also happen when an employee has more than one job or income that fluctuates throughout the year. But it’s your responsibility to ensure withholding is adequate. Use the IRS’s Tax Withholding Estimator to help determine the correct amount. Then complete a new Form W-4 and submit it to your employer. Another option is to begin making estimated tax payments (usually quarterly). This is what self-employed people do to comply with the “pay as you go” tax system. Click here to access the Tax Withholding Estimator and contact our tax team to discuss whether you’re withholdings are accurate.
Posted March 4, 2022
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