Personal Income Tax (PIT)

Personal Income Tax (PIT) is a tax levied on an individual’s earnings, including wages and bonuses, calculated based on income brackets and filed annually with the IRS.

1. What is personal income tax (PIT)?
   Answer: It is a tax on an individual’s earnings, filed annually.
   
2. What rates apply?
   Answer: Rates range from 10% to 37% based on 2025 income brackets.
   
3. Who pays it?
   Answer: All employees with taxable income pay it.
   
4. What are deductions?
   Answer: Deductions include standard or itemized amounts.
   
5. What role does HR play?
   Answer: HR ensures proper withholding via W-4 forms.