Page 1 Page 2 Page 3 Page 4 Page 5 Page 6When you’re hired, you and your employer will determine how much money should be withheld from your paycheck for taxes. If you withhold more than you need, you’ll get a refund check at the end of the year. If you don’t withhold enough, you’ll have to pay additional taxes. As a general rule, about 25% of your paycheck will be withheld to pay taxes. Be wary of any business that wants to pay you cash and not withhold taxes. The amounts withheld for federal, state, and local taxes depend on how much you earn. State and local tax amounts also depend on where you live. Here are the basic withholding categories and the amounts generally withheld:  Federal Income Tax – 10% to 35% of your pay  State Income Tax – usually 3% to 7% of your pay  Local Income Tax – generally less than state tax  Social Security Tax (FICA) – around 6% of your pay Social Security is a mandatory retirement plan run by the federal government. When you are 65, you can apply to receive income from Social Security.  Medicare Tax – approximately 1.5% of your pay Medicare is a government health insurance program, primarily for individuals 65 and older. At the end of each year, your employer will give you a W-2. This form will list your earnings for the year and the amounts that were withheld. You will need a W-2 in order to prepare your taxes. Taxes Withheld