The Federal Tax Table: Helping you make sure your income and payroll fall under IRS guidelines.

September 23rd, 2009

Federal Tax table Irs

Why does everyone get so frazzled about federal taxes? At the beginning of every year, we begin to see lots of commercials about taxes and tax software, reminding us all that April 15th is just around the corner. W-2’s begin arriving and everyone gets their papers in order. Filing can be a tricky process for some people, especially when it comes to all the forms and deductions involved. Many people choose to have someone do their taxes for them in order to ensure they are correct. Aside from a few special situations, we all have to pay taxes, and we have to make sure we pay the right amount of taxes, and report all of our income so that nothing is incorrect or falsified in our tax preparation. If so, there could be a lot of trouble on the horizon. This is normally what makes people so uneasy about tax time.

What does the IRS do to people who don’t pay their taxes? Simply put, if you have not paid your taxes, or if your tax forms were wrong or falsified, you could be in a great deal of trouble. If something is found to be not right, you may be audited. If your activity is suspicious, the IRS will find out what you are doing, and if it is criminal or fraudulent, you could very easily find yourself in jail over it. There are a great many people who either tried to hide what they were making in order to avoid paying taxes, or they did not turn their forms in correctly, and they have paid very dearly for it. It can even come back to haunt you years later. Your 2005 federal tax forms may have been wrong, or even your 2004 taxes: it doesn’t matter. Even if your federal withholding was simply set up wrong, you could get in trouble. The records for the IRS for 2006, 2009, and everything in between and back to the first time you filed taxes are all available.

How Is My Income Affected? The amount you make each year will put you in a certain tax bracket, and that will determine how much tax you have to pay. There are also other factors involved, such as dependents and withholdings that will also need to be worked out with your employer.

If I’m a business owner, how is my payroll going to be affected? IF you own your own business, it would be in your best interest to consult with a tax professional before hiring your employees just to make sure that you know how much taxes to take out and how to report your earnings and payroll in order to comply with federal law. You will also be responsible for your employees w-2’s, so if you are not prepared to supply this for your employees, then you should rethink having employees in the first place! As long as you follow the laws down to the letter, you should be just fine.