For W2’d employees, withholdings are the federal or state income taxes taken from your paycheck. These amounts of income taxes your employer withholds from your regular pay depends on two things:

• The amount of income you earn.
• The dependent information you provide to your employer on Form W–4.

For assistance with your income tax withholdings, you may use the Tax Withholding Estimator (TWE) found on the IRS website. Using the TWE to estimate your 2023 income taxes, compares your current taxes and can determine if you need to adjust your withholdings with your employer.

You can find more information on the Frequently Asked Questions on the IRS website:

Individuals

Your employer must withhold income tax from your paychecks if you are an employee. Taxes are deducted from other sources of income, including pensions, bonuses, and commissions.

Employers

Employers are required by federal and state law to withhold income taxes from their employee’s paychecks. Employment taxes include federal and state income tax and Social Security and Medicare taxes.

Foreign Persons

Most income received from a U.S. source by a foreign individual is subject to U.S. tax of up to 30 percent. Taxes are generally taken from the payments made to the foreign person, also known as a Non-Resident Alien.