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Tax forms
Federal Withholding Tax
All employers are required to withhold federal income tax from an
employee’s pay. The
IRS can slap an employer with a bill for back taxes that includes stiff
penalties for failure to withhold. Employers
should provide IRS Form W-4 Employee’s Withholding Allowance
Certificate to employees for determination of correct federal income
tax withholding.
Helpful links
http://www.irs.gov
State Withholding Tax
Each state has different withholding taxes. Taxes are withheld for
the state in which the employee lives (not works). Example:
NPC is located in state A and Employee lives in state B. Taxes
will be paid to state B. Check with your state government to
find out which forms your employees need to complete.
[Note: Some states (i.e., District of Columbia) have
“non-residence” forms.]
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