Federal withholding is where your employer takes a certain amount of money out of your paycheck for taxes and sends it to the federal government on your behalf.
If you see that your paycheck has no federal tax withheld, it could be because you are exempt because you had a right to a refund.
Formula to calculate federal withholding.
- Obtain a copy of IRS Form W-4.
- Enter your personal information which includes your name, Social Security number and address.
- Calculate for multiple jobs if necessary or a working spouse.
- Claim any dependents.
- Factor other adjustments for instance, other incomes, deductions, and adjustments to your withholding.
- Sign the form and return the completed form to your payroll department.
The employer will use this information to know your federal withholding.
You can even use the federal withholding tax table to know your federal withholding.