As school winds down many students will hit the job market for summer employment. The Internal Revenue Service reminds students that not all the money you earn may make it into your pocket. That’s because your employer must withhold taxes. Here are some things the IRS wants students to be aware of when they start a summer job.
The amount of money withheld from each paycheck can come as a surprise to first-time filers. Generally, employers are required to deduct and withhold: Federal and state income taxes, local taxes, payroll taxes, such as Social Security (FICA) and Medicare, which reduce a paycheck by 7.65 percent.