IRS Payroll Taxes

What is commonly known as the IRS actually stands for Internal Revenue Service. This department is the in charge for the taxes paid to the Government every year.

Their regime includes varied prospects like your personal taxes, IRS payroll taxes, etc.

IRS payroll taxes could be fairly confusing and sheerly affect on the paycheck we collect at the end of every month. However, it is a must for one and all to understand these taxes as you would need to claim the same at the end of the year while calculating your own personal taxes. If you can get hold of the calculations and laws, many people manage to get hold of a big lot of money back, the money that they have earned but lost due to the taxes levied throughout the year.

Here are some key features of IRS that would help you understand this term better:

1. IRS is deducted from your paycheck every month.

2. The employer also pays a certain portion of the IRS payroll taxes as it is mandatory for all the companies.

3. As the employer and employee both pay the IRS Payroll Taxes, it is a shred responsibility.

4. FICA tax is a blend of Medicare taxes & social security taxes. This type pf share tax is shared in a fixed ratio s guided in the pre-set laws. Each one of you pays 6.2% towards social security and towards Medicare it is 1.45%.

5. There is no negotiation possible in these percentages. The rate is fixed and that by sheer law can't be changed.

6. Hence, your salary and IRS Payroll taxes are directly related - one increases other also increase.

7. Among other taxes that are deducted from the employee's paycheck, are the Federal IRS Payroll Taxes. Unlike the FICA taxes, the percentages in this case are not fixed by law. Here are several factors that determine as to what amount you pay for these taxes.

8. For example, when you initialize your job with a company, you would have to fill the W-4 Form. The W-4 Form puts you through questions on your marital status, how many Dependants are there in your family, etc. These and other personal aspects of your own life would affect the amount to be deducted the Federal IRS Payroll Taxes.

9. Further talking about the Federal Taxes, there are some other amounts deducted from your paycheck that primarily depend on exactly how much money do you make. Then the larger the amount you earn, the more would be the deduction. Yet, this is not always true. This form of tax depends on varied other factors as well, like where do you live.

10. Depending on your resident state, you have to pay the state taxes. These state taxes are quite similar to the other federal taxes. A scalable percentage is set for these taxes as well that depends on various decisive factors. So, it is quite hard to predict the right amount or percentage of deduction made in your paycheck on this front. Abhishek is a Tax Consultant and he has got some great tips on Filing And Understanding Taxes!

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