What Does “FIT” Stand for on My Pay Stub?

On a pay stub, “FIT” represents federal income tax. This is the amount an employer is required to deduct from an employee’s pay in order to pay taxes.

In the United States, the Internal Revenue Service determines federal income tax liability. FIT is applied to all of a taxpayer’s taxable income for the year. Not all taxpayers are assessed the same rate. Certain entities, such as companies and trusts, can change their tax rate via deductions and credits. Other groups, such as nonprofits, can petition for tax-exempt status.

Some states also have their own income tax. This tax is abbreviated SIT on pay stubs, which stands for state income tax.

Joel Gomez
Joel Gomezhttps://www.gadgetclock.com
Joel Gomez is an Avid Coder and technology enthusiast. To keep up with his passion he started Gadgetclock 3 years ago in 2018. Now It's his hobby at the night :) If you have any questions/queries and just wanna chit chat about technology, shoot a mail - Joel at gadgetclock com.

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