A majority of individuals wake up, get ready, and go to work on a consistent basis. Wherever your place of employment, a number of hours are spent doing your job, returning home at the end of the day only to sleep and repeat the previous days activities all in an effort to earn money for the bills, necessities and potentially a little fun when all is said and done.

Every week or two, perhaps twice a month or at the conclusion a small piece of paper is provided to you with numbers on it - your evidence of a job well done. This check has money provided to you from the employer and if given a close examination, some disappears before it ever reaches you.

One part of this is the “Federal Withholding” which is composed of a few different things in order to provide various services both nationally and closer to home. Potentially comprised of social security, Medicare, income tax, unemployment, and workers compensation, these factors take regularly from your check and here is where that money goes.

Social Security

A federal program providing benefits to retired persons, the unemployed, and the disabled is contributed to by approximately 169 million Americans. Both the employer and employee are subject to Social Security based annually on a fixed percentile. The tax is also limited to a wage base at which point it will be removed for the remainder of the year.

Medicare

Similar to Social Security Medicare is a federal insurance program available to persons 65 or older with a few exceptions based on special circumstances. Unlike Social Security, the Medicare tax rate applies to every penny earned but is also contributed into by the employer and employee.

Income Tax

Determined by your W-4 form when hired, income taxes are the monies you select to be withheld from your paycheck based on an individual’s personal tax situation. These are the federal taxes which must be paid annually and are taken out each pay period, in addition to an annual filing.

Unemployment

This is a payroll tax typically footed by the employer on an employee's earnings up to the first $7,000 except in Alaska, New Jersey, and Pennsylvania.

Workers Compensation

Another program covering employees who are injured while performing job specific functions and is paid for by the employer.

The experts at Bloch, Rothman, and Associates will be happy to help analyze your pay stub more in-depth, assist you in determining which deduction would be right in your situation and answer any questions regarding individual or business income taxes. We can also assist with a variety of bookkeeping and other payroll options. It is recommended for those who are selected for an audit, that they enlist the services of a professional tax service before they begin engaging with the IRS auditor, especially before they submit any information.

A full detailed review of your tax situation can be completed in addition to resolution issues and estate compilations. All services will be completed in a timely manner, depending on your restrictions and possible tax deadlines. Whether you need a simple explanation on a random tax form, are in need of representation, or would like help in a variety of other services our tax experts are ready and willing to assist. Call 303-321-7160 or contact us for your initial free no obligation consultation.