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Federal Income Tax (FIT)

Federal income tax (FIT) is withheld from employee earnings each payroll. It's 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 on the tax tables for 2018 can be found on IRS Notice 1036. You can also check out IRS Publication 15A for an in-depth description of these tax calculations. 

Gusto calculates your employees' federal income tax using the tax withholding information entered into Gusto and the current IRS tax tables.