Once a year, the Internal Revenue Service Issues Circular E, the Employer’s Tax Guide. Circular E covers regulations on computing income tax withholdings, what constitutes an employee, the type of pay and gratuities, what to withhold from employee earnings, tax deposits, and what to withhold from employee wages.

The Internal Revenue Service’s Employer’s Tax Guide. Employers can use the publication for guidance and instructions on their federal tax obligations. The primary IRS requirements for withholding and depositing tax and filing employer tax obligations are included.

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