Appropriate Tax Withholding

Forum|Forum|2 years ago
May 29, 2024
1 reply
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I am currently making hourly rate plus commission. My employer is unable to assist me in knowing what to report to be taken out. I ended up owing on IRS taxes this previous year and am seeking assistance in knowing what to appropriately report to withdrawal each paycheck from commission. I have attempted the IRS calculator as previously suggested and do not get a result that makes sense with me owing. Hoping to get any assistance or insight on this.

Ask the Experts - W-4 II - May 2024

DanielleR2

Level 2

When utilizing the tax calculator I would consider increasing your income to reflect a higher commissions. If you commissions are always changing this could be causing your to have inaccurate calculations. Another item to take into account is as an hourly employee you can to keep in mind any OT. One thing to note is if you are using an average of your hourly rate and commissions you can add additional taxes to be withheld on your W-4 to account for any fluctuations. You should also review these calculations quarterly to have a more accurate understanding on where your pay is.