Hello and welcome to Money Girls quick and dirty tips for a richer life.

I'm your host, Laura Adams.

In this episode, I'll discuss payroll tax withholding.

Understand what exactly is taken out of your paycheck and when you'll need to adjust your

allowances.

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When you take a new job, one of the forms you complete for your employer is the W4.

This form tells your employer how much taxes should be taken out of your pay.

The money that comes out of your gross check is called withholding because it's withheld from you and goes to the government instead.

Federal income tax is called a pay-as-you-go tax because you must pay up as you earn money during

the year.

Withholding is a tax collection method that benefits the government. the burden of collection on employers who are required to calculate and submit

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