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Publication 15 Circular E, Employer's Tax Guide 2018

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[Music] before we learn how to calculate federal income tax withholding let's go over a few more abbreviations if you see ytd that means year to date for example you might see something that says 30 000 gross wages ytd that means that that employee's gross wages are thirty thousand dollars so far this year so you will need to know an employee's gross wages ytd year to date for certain taxes for payroll and again if you see fit this stands for federal income tax if you see ee it stands for employee if you see er it stands for employer so the reason we use employee and employer abbreviations a lot in this chapter and the next chapter is we're going to find out that some payroll taxes are paid only by the employee some are paid only by the employer and some are paid by both the employee and the employer so now let's talk about the federal income tax withholding fit withholding so employers must withhold an estimated amount for federal income tax from each employee's paychecks it's an est

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