Employment, for the past two or three decades has been exemplified by the companies hiring and firing policy in order to adjust to economic environment.
But this scenario is not here to leave us, it is expected to continue.
There are some sectors like telecom, tourism which are hit by employment cuts but on the other hand there are some sectors like health care or parts of information technology that are not able to find enough skilled people for their position.
Withholding tax is a fact of life for the employee.
It however serves the purpose of gradually discharging the tax liability throughout the year.
But there is another side to withholding.
The employee can claim all the withholding allowances he is entitled to by filling up the Form W-4 carefully and correctly.
This provides him with tax relief at the earliest opportunity possible at the time tax is being deducted out of his wages.
Actually, it is the employer's responsibility to have the employee fill up Form W-4 as soon as the employee is hired.
It is also in employee's interest to do so particularly if he is claiming himself as entitled for full tax relief through exempt status.
To qualify for exemption the employee must show that he has had no tax liability in the previous year and that he will have no tax liability for the current year as well.
The amount of tax withheld also depends on your marital status and the withholding allowances you are entitled to.
These allowances depend on such factors such as number of dependents, quantum of itemized deductions and tax credits available for a year, each of which should get you some tax relief.
But this scenario is not here to leave us, it is expected to continue.
There are some sectors like telecom, tourism which are hit by employment cuts but on the other hand there are some sectors like health care or parts of information technology that are not able to find enough skilled people for their position.
Withholding tax is a fact of life for the employee.
It however serves the purpose of gradually discharging the tax liability throughout the year.
But there is another side to withholding.
The employee can claim all the withholding allowances he is entitled to by filling up the Form W-4 carefully and correctly.
This provides him with tax relief at the earliest opportunity possible at the time tax is being deducted out of his wages.
Actually, it is the employer's responsibility to have the employee fill up Form W-4 as soon as the employee is hired.
It is also in employee's interest to do so particularly if he is claiming himself as entitled for full tax relief through exempt status.
To qualify for exemption the employee must show that he has had no tax liability in the previous year and that he will have no tax liability for the current year as well.
The amount of tax withheld also depends on your marital status and the withholding allowances you are entitled to.
These allowances depend on such factors such as number of dependents, quantum of itemized deductions and tax credits available for a year, each of which should get you some tax relief.
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