Telecommunication Services for Withheld Numbers
Many telecommunication companies offer services that allow customers to withhold their numbers for calls.
Understanding Withholding Allowances
Explanation of what a withholding allowance is and how it affects income tax deductions.
Gross Pay vs. Net Pay
Comparison of gross pay and net pay, along with their implications.
A withheld number, as the name implies, is a number that has been blocked by the caller so that it won’t be released or be available to the person being called. When you permanently withhold your number, any number that you call, the receiver is going to see “number withheld” instead of your phone number on their screen. There are many reasons why a person would withhold his or her number, including anonymity and privacy.
On the other hand, a withheld number appearing on your screen is a deliberate move by the caller to prevent you from knowing his or her number for reasons only the caller knows.
What is a withholding allowance? A withholding allowance is an exemption that lowers the amount of income tax you must deduct from an employee’s paycheck. A larger number of withholding allowances means smaller income tax deductions, and a smaller number of allowances means larger income tax deductions. Some employees, such as those whose tax filing status is single, may claim zero allowances.
Gross pay is total income before deductions. Net pay is left after deductions or withholding. Gross income is typically larger. Net income is usually smaller.
Withholding is tax kept from wages, not in the paycheck. It goes to tax authorities. Income tax and payroll taxes are common withholdings. Withholding helps avoid owing money at tax time.
The W-4 form sets allowances. More allowances, less tax per check. Fewer allowances, more tax per check. No maximum number of allowances exists. A single person with one job may claim two allowances. A couple with two jobs may claim one each.
Should I put 0 or 1 for withholding?