The Basic Responsibilities of an Employer with Regard to Federal Income Tax Withholding.

Running head : Withholding federal tax income

Employers ' responsibilities in withholding federal tax income

Name

University

Course

Tutor

Date

Abstract

The essay discusses various responsibilities of employers in respect to withholding of taxes . It indicates that employers play a crucial role in the administration of tax laws and in the collection of taxes from the employees . The essay shows the importance of employers playing their responsibilities well as they ease the collection of taxes by making it time efficient and cost effective . The responsibilities of employers in

respect to withholding of taxes are mandatory and therefore any employer who fails to follow them fully is liable under the tax laws

Introduction

Employees earn taxable income as a result of services they offer to their respective employers . Anyone earning some income is expected under the tax laws to pay all the taxes without delay to the tax authorities One of the major principles of tax collection is being economical in collecting taxes . The tax laws thus require any employer remunerating taxable income to an employee to deduct the tax liable on the employee 's remuneration before paying an employee his or her remuneration net of withholding tax . The employer is then required to submit the withheld taxes to the tax authorities on behalf of his or her employees (Dimsuyu 1998

Responsibilities of employers in withholding federal income tax

All employers have the responsibility of withholding all the tax due on their employees in respect to the remuneration being paid to the employees...