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What is the importance of correctly calculating income tax withholding and the possible problems with miscalculating it for the employee and the employer?

Kathy Robinson

in Student Loans

1 answer

1 answer

Mindee Nelson on December 9, 2018

The withholding tax, if not done correctly, can lead to punitive damages severe enough to close a business. It is a highly regulated area that involves the stipulated rate calculations and tax tables. The accession to the taxing authority guidelines is imperative to avoid penalties and interest, or other punitive measures. There are penalties of fines and possible imprisonment if a bad calculation. Employee penalties would be fines of up to $1,000 or imprisonment for up to one year, or both

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