Let's say you have employees who experienced a major life change within the past year. Whether it be switching jobs, getting married or increasing the number of people in their family, there are many reasons why someone might be eligible for the Earned Income Tax Credit.
Employers generally must withhold income tax from employees' wages. To figure out how much tax to withhold, you need to use the employee's Form W-4, the appropriate method and the appropriate withholding table described in Publication 15-T, Federal Income Tax Withholding Methods. You'll deposit your withholdings based on your business and the amount you withhold.