Agenda > Taxes > Income Tax > FICA Tax

Income Tax

Wages subject to federal employment taxes include all pay given to an employee for services performed. The pay may be in cash or in other forms. It includes salaries, vacation allowances, bonuses, commissions, and fringe benefits. It does not matter how the payments are measured or made.

To know how much income tax to withhold from employees’ wages, the employer should have a Form W-4, Employee’s Withholding Allowance Certificate, on file for each employee.