Federal income tax (FIT)
Federal income tax (FIT) is withheld from employee earnings each payroll. It is calculated using the following information:
- The amount earned
- Employee's marital status
- Employee's federal withholding allowance amount
- Any other additional withholding amounts specified by the employee
More information can be found on the IRS Publication 15 (Circular E). Gusto accurately calculates your employees' federal income tax using the tax withholding information entered into Gusto and the current IRS tax tables.