An employee's exemption certificate is used to determine federal income tax withholding and, in some cases, state and local income tax withholding. The Internal Revenue Service administers federal ...

Federal Form W-4 is used to help employers collect information needed to take out the proper amount of federal income taxes from employees’ paychecks. What the employee enters on the form will affect ...

Establishing the proper tax withholding is both an art and a science. Too much withholding means you overpaid throughout the year, giving the government an interest-free loan; too little means you are ...