Federal Income Tax Withholding (FITW)

Federal Income Tax Withholding (FITW) is the amount deducted from an employee’s paycheck by the employer based on IRS guidelines to cover federal income tax liability.

1. What is Federal Income Tax Withholding (FITW)?
   Answer: It is the amount deducted from paychecks to cover federal income tax.
   
2. How is FITW determined?
   Answer: It is based on the employee’s W-4 form and IRS tax tables.
   
3. What is the purpose of FITW?
   Answer: It ensures tax payments throughout the year.
   
4. Who is responsible for FITW?
   Answer: Employers are responsible for withholding and remitting it.
   
5. What happens if FITW is miscalculated?
   Answer: It may result in underpayment penalties or a refund.