As an employee, your employer withholds taxes based on what you claim on your W-4 form. Unfortunately, the tax tables used by this form to calculate your withholdings do not account for seasonal jobs.

What happens when you pick up a side gig or seasonal work?

Earnings split over two employers, and thus two W-4 forms typically result in paycheck withholdings being too low for supplemental income workers and too high for students working during the summer.

If you haven't withheld enough tax during the year, you might get hit with a big tax bill at tax time.

So, what is the solution?

If you anticipate earnings in excess of the standard deduction, request a revision of your withholdings. Use tools on the IRS web site, review last year's tax return, or ask for help to estimate the correct amount to withhold. From there, ask your employer to adjust your federal and/or state withholdings up or down.

Still unsure? Click here to schedule an appointment with one of Gold Standard's seasoned tax accountants.

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