Encourage employees to access the IRS website and use the Tax Withholding Calculator to make sure they are set up correctly.
The IRS provides a Tax Withholding Estimator for anyone who would like to confirm whether they are having the right amount of tax withheld from their paychecks.
Why use the Estimator?
- Ensuring that your tax contributions are accurate will prevent you from having to settle up with tax agencies when you file your annual tax return. Ideally, you won't owe taxes and won't get a refund.
When to use the Estimator?
- When you experience a major life change, such as marriage, birth of a child, adoption or purchasing a home.
- When you pay rate changes.
Before using the Estimator, be sure to have the following items:
- Your most recent pay stub. If you're married, grab your spouse's, too.
- Details for other sources of income you may have.
- Most recent income tax return.
Remember that the Estimator results will only be as accurate as the information you enter. GARBAGE IN, GARBAGE OUT.