I have income in addition to that reported on my W-2 from my employer. Can my employer withhold additional tax above the local rate to cover this tax liability?

An employer's withholding tax is not deposited into individual employee's accounts, but into the employer's master account. The total tax withheld from all employees is then reconciled with the total local wages earned by said employees. Because all employer's withholding accounts are required to reconcile the total tax withheld from all employees with the total local wages earned by all employees, withholding by employers in excess of the required tax rate is not permitted. Also as a result of the need to reconcile tax withheld to wages earned, any refund of tax that has been incorrectly over-withheld by the employer is issued directly to the employer, not the employee.

Close