Title: Module 1 Introduction: (CU2 M1)
Course: SkillsCom BA 177 16.0 > Section: Credit Unit 2 Module 1

Module 2 introduces Income Tax Withholding.

Module Outcomes:

- Understand and demonstrate the ability to compute income tax withholdings.
- Explain coverage under the Federal Income Tax Withholding Law by determining: (a) the employer-employee relationship; (b) the kinds of payments defined as wages, and (c) the kinds of pretax salary reductions.
- Explain: (a) the types of withholding allowances that may be claimed by employees for income tax withholding and (b) the purpose and use of Form W-4.
- Compute the amount of Federal Income Tax to be withheld using:

(a) the percentage method;
(b) the wage bracket method; employment; and

(d) withholding of federal income taxes on supplementary wage payments.

(c) alternative methods such as quarterly averaging, Annualizing of wages, and part-year 4)      Explain:

(a) Form W-2;

(b) the completion of Form 941, Employer’s Quarterly Federal Tax Return,

(c) major types of information returns, and

(d) the impact of state and local income taxes on the payroll accounting process.