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PRDV204: Payroll Applications

Unit 4: Payroll and Paycheck Withholdings—Employee Federal Tax  

The Sixteenth Amendment of the United States Constitution allows the federal government to collect taxes on forms of income, as they deem appropriate.  When the federal government collects these taxes, the money is used to fund federal projects like federal student loans, and to pay the compensation of the government workers who keep all aspects of the federal government going. In this unit you will learn about the federal tax-collection process associated with payroll, and you will develop an understanding of Social Security and Medicare taxes.

Unit 4 Time Advisory
This unit should take you approximately 3 hours to complete.

☐    Subunit 4.1: 64 minutes

☐    Subunit 4.2: 116 minutes

Unit4 Learning Outcomes
Upon successful completion of this unit, the student will be able to:
- Understand the various federally mandated withholdings when compensating employees.

4.1 Federal, Social Security, and Medicare Withholdings   4.1.1 Withholding Taxes   - Reading: IRS.gov’s "Tax Withholdings" Link: IRS.gov’s "Tax Withholdings" (HTML)
 
Instructions: To review this part of the course click on the link above.  In this part of the course you will learn about two distinct ways to have your federal tax withheld that align with federal tax law.  Additionally, this part of the course will provide you with insight on changing your withholdings, what to do if you work two or more jobs, and how to get the right amount withheld.  There are additional hyperlinks within the body of this reading.  You will have to click on the hyperlinks to view the associated information.        
 
Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.
 
This reading should take you approximately 60 minutes to complete.    

4.1.2 Withholdings and the Employee’s Paycheck   - Web Media: YouTube: Mahalo.com’s "How do I know how much federal income tax to withhold from my employee's paycheck?" Link: YouTube: Mahalo.com’s "How do I know how much federal income tax to withhold from my employee's paycheck?" (YouTube)
 
Instructions: To review this part of the course click on the link above.  In this 4-minute video you will be provided with an answer to the question "How do I know how much federal income tax to withhold from my employee's paycheck?"  You cannot complete payroll without an understanding of IRS publication 15, and this video will provide you with some pointers on what's included in publication 15.        
 
Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.
 
This web media should take you approximately 4 minutes to complete.    

4.2 The Employers Tax Guide   - Reading: U.S. Internal Revenue Service: “Publication 15 - Employer's Tax Guide” Link: U.S. Internal Revenue Service: “Publication 15 - Employer's Tax Guide” (PDF)
 
Instructions: Please click on the link above and download this PDF. Publication 15, also known as the “employer’s tax guide,” will provide you with a broader overview of various tax concepts from the employer’s perspective.  You may want to refer back to this publication as the course progresses.     
 
Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.
 
Reading this guide should take approximately 2 hours.