School is out! A lot of teenage students are due to be starting summer work. From working in retail to internships, there is an importance to remind students that not all of their income may make it to their bank account. Following are the things to know when you start that summer job:
New employees. Teenagers and college students who are working generally have taxes withheld as a regular practice by the company they work for. When you get a new job, its required that you complete a Form W-4. When you complete this form, your employer uses the completed document to calculate how much federal income tax to withhold from your pay. There is a Withholding Calculator that can be found at LR Tax & Accounting Tools that can assist in how to properly complete this form.
People who are Self Employed. For those who do odd jobs throughout the summer for work – like mowing lawns or cleaning homes – these people are considered self-employed. It’s important to remember that the income they receive from being s