What is fictitious income to tax with respect to the payroll?

[accountinglads]

FITW tax is abbreviated as Federal Income Tax Withholding. It is the amount of your salary that your employer deduces and remits to IRS to represent your approximate federal income taxes. This system also makes sure that taxes are not collected at the same time in a single year. The deduction depends on the information that you place in your W-4 form like marital status and dependents. The amount you are withheld is added to your tax bill when you file your annual return and you might either be refunded or owed a higher amount. Read us: What Is Fitw Tax