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If an employee qualifies, he or she can also use Form W-4 to tell you not to deduct any federal income tax from his or her wages. To qualify for this exempt status, the employee must have had no tax liability for the previous year and must expect to have no tax liability for the current year.
The purpose of withholding tax is to ensure that employees comfortably pay whatever income tax they owe. It maintains the pay-as-you-go tax collection system in the United States. It fights tax evasion as well as the need to send taxpayers big, unaffordable tax bills at the end of the tax year.
To calculate Michigan withholding, multiply the amount of reportable winnings by 4.25 percent. Include the amount withheld on the recipients Form W-2G. Michigan withholding is required on winnings from charitable gaming if federal withholding is required.
Employer Pays Withhold half of the total 15.3% (7.65% = 6.2% for Social Security plus 1.45% for Medicare) from the employees paycheck. The other half of FICA taxes is owed by you, the employer. For a hypothetical employee, with $1,500 in weekly pay, the calculation is $1,500 x 7.65% (. 0765) for a total of $114.75.
Employees may claim exemption from withholding only if they do not anticipate a Michigan income tax liability for the current year because their employment is less than full-time and the personal and dependency exemptions exceed their annual compensation.
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Employers must comply with many different types of local payroll taxes. These taxes are based on where your employees work and/or live. Certain types of local taxes are only imposed on employers doing business in a locality.
For employees, withholding is the amount of federal income tax withheld from your paycheck. The amount of income tax your employer withholds from your regular pay depends on two things: The amount you earn. The information you give your employer on Form W4.
You can claim exemption from withholding only if both the following situations apply: For the prior year, you had a right to a refund of all federal income tax withheld because you had no tax liability. For the current year, you expect a refund of all federal income tax withheld because you expect to have no liability.
Similar to other Michigan cities, Lansing has adopted the Michigan Uniform City Income Tax Act. Employers conducting business in Lansing must withhold Lansing city income taxes for employees who work or live in the City.
Using the Wage Bracket Method Multiply the number of withholding allowances over 10 by the payroll periods allowance value, found in the IRS Publication 15-T. Then subtract that number from the employees wages. Use this number to determine the amount to withhold under the 10-allowance column in the correct table.

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