Withholding tax comes in various forms and types:
The 2 most common are for payroll, where tax is withheld and sent to th appropriate jurisdictions - Federal, State, City and even local - depending on what is needed for that particular income. The income taxes are sent to the tax jurisdiction and placed in an account entirely for the benefit of the employee. They are an estimated payment on tax that will be calculated at year end. (Additionally, other payroll requirements of things like FICA, Unemply Insur, FUTA, Workers Comp, etc., etc. may be withheld fro the pay given the employee). THIS TAX IS ENTIRELY IN THE CONTROL OF TE EMPLOYEE/TAXPAYER and just like the tax that will be due at the end of the income period it is an estimated payment on, because of all the variables in calculating tax (like single or joint filing, number of dependents, mortgage interest payments, IRA/401k contributions, etc., etc., etc), there is no specific or even right/required answer to your question.
There is also another withholding - called "backup" withholding. It is generally used only for foreigners who may try to avoid paying tax on US source income, and those who faile to provide SS#s or may have had problems reporting income on their annual return in the past. It requires that 20% of any payment (say interest on investments, or even rents, etc) be withheld and paid to the US on their behalf. In which case $107.26 of this amount would be submitted.
When paying withholding tax the double accounting method would be to first post the amount as an Accounts Receivable, under Withholding Tax. The next step would be to post the amount to Accounts Payable under Withholding Tax.
The income tax is what is paid by "withholding of tax" from someones payment/pay. Other taxes or charges, like insurance, worker comp, etc may be [apd by withholding the amount from payment/payroll. There is really no such thing as a tax on withholding.
yes
Classic Withholding Tax applies to the practice in some countries for people paying invoices to hold back a certain portion of their payment for withholding tax purposes. The United Kingdom is one of the countries the utilizes the Classic Withholding tax method.
It is called tax withholding. Many people simply call it withholding.
When paying withholding tax the double accounting method would be to first post the amount as an Accounts Receivable, under Withholding Tax. The next step would be to post the amount to Accounts Payable under Withholding Tax.
Withholding tax is not required in SAP but this functionality available for the countries where it is required. There are two kinds of Withholding tax, Classic and Extended.
The income tax is what is paid by "withholding of tax" from someones payment/pay. Other taxes or charges, like insurance, worker comp, etc may be [apd by withholding the amount from payment/payroll. There is really no such thing as a tax on withholding.
Classic Withholding Tax applies to the practice in some countries for people paying invoices to hold back a certain portion of their payment for withholding tax purposes. The United Kingdom is one of the countries the utilizes the Classic Withholding tax method.
yes
16. The Thurstons' total federal income tax withholding is $
withholding tax
No. Its an excise tax
It is called tax withholding. Many people simply call it withholding.
social security tax
Ross McGill has written: 'Investment withholding tax' -- subject(s): Taxation, Portfolio management, Withholding tax, Investments 'Technology Management in Financial Services (Finance and Capital Markets)' 'International Withholding Tax'
Withholding is optional on regular periodic retirement pension payments. You may request withholding if you wish. Ask the payer for a withholding form. However, pension payments (except for return of employee after-tax contributions and Roth 401k employee contributions and earnings) are taxable. You will have to pay tax on them when you file your tax return at the end of the year. And if you don't have withholding, you may have to make quarterly estimated tax payments in order to avoid an underpayment penalty.