The IRS also changed 2025 tax withholding tables, which determine how much money employers should withhold from employee wages in paychecks for federal taxes. The big picture: By adjusting the tax ...

How Is Your Paycheck’s Income Tax Withholding Calculated? When you start a new job, you’re required to complete an IRS Form W-4, which is used to determine how much federal income tax and ...

Data: IRS; Chart: Axios Visuals The IRS also changed the 2025 tax withholding tables, which determine how much money employers should withhold from employee wages in paychecks for federal taxes.

There are two different ways that your employer may withhold federal taxes on your bonus: The percentage method: "When an employer taxes your bonus using the percentage method, it must identify ...

But you likely filled out a W-4 form, which helps to determine how much of your income your employer will withhold, or keep from your paycheck for federal taxes. Having too much tax withheld can ...