If your small business has employees, then congratulations! You are part of the backbone of the American economy and if you’re adding employees, it’s probably a sign that your business is doing well.
But one thing that has been a challenge for many small businesses is withholding the right amount of federal income tax from your workers’ paychecks.
Good news for you is that the Internal Revenue Service (IRS) recently launched a new spreadsheet-based tool to help you calculate appropriate with-holdings. It’s a downloadable “assistant” they call the Income Tax Withholding Assistant for Employers.
The tool also helps employers transition to the redesigned withholding system which went into effect on Jan. 1st (2020).