Why is additional FIT not withheld on the first biweekly payroll of the fiscal year? »

35) Why is additional FIT not withheld on the first biweekly payroll of the fiscal year?

Since the first biweekly payroll of the fiscal year is typically for a pay period shorter than 10 days, there is less pay available to cover deductions.  To make sure there is as much pay as possible available for other deductions, no additional FIT is withheld on this payroll.  If the first biweekly payroll of the fiscal year happens to be a supplemental payroll, no additional FIT is withheld for both the supplemental and the first regular biweekly payroll.

This page was last updated on 10/02/2012 9:35:15