![]() Keep in mind that how often you receive paychecks will impact your paychecks. Most importantly, it removes the use of allowances and instead features a five-step process that asks filers to indicate various personal information, along with dependents and additional income or jobs. The new W-4 comes with significant revisions. Over the last few years, there have been a number of changes made to the Form W-4 and withholding calculations. ![]() It’s your employer’s job to withhold federal income tax based on the information you provide on your W-4 form. How much you pay in federal income tax is based on factors like your salary, your marital status and if you asked for an additional dollar withholding. This is the case for self-employed people and some independent contractors.Įmployers also withhold federal income tax from each of your paychecks. In situations where you don’t have an employer to contribute the additional 50%, you may find yourself responsible for the full percentage. In most cases, you’re only responsible for paying 50% of your FICA taxes on your own. Your employer does not match this surtax. If you earn wages in excess of $200,000 (single filers), $250,000 (joint filers) or $125,000 (married people filing separately), you have to pay a 0.9% Medicare surtax. Medicare taxes account for a smaller percentage at 1.45%, with employers again matching that amount. A withholding of 6.2% of your income goes toward Social Security taxes with an additional 6.2% coming from your employer. Social Security and Medicare taxes together make up FICA taxes, and they are treated in the same way across all states. Some of this money goes to FICA taxes and federal income taxes. ![]() That’s because every pay period your Utah employer will deduct money from your wages for a variety of reasons.
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