State Withholding Tax is a percentage of an employee’s wages deducted by employers to cover state income tax obligations, varying by state and reported on W-2s.
- What is state withholding tax?
Answer: It is a wage deduction for state income tax. - Who is subject to it?
Answer: Employees in states with income tax are subject. - How is it calculated?
Answer: It is based on W-4 forms and state tax brackets. - What are the exemptions?
Answer: States like Texas and Florida have no income tax. - What role does HR play?
Answer: HR withholds and reports it accurately.
