Deel withholds and remits taxes on your income. Employees are required to file federal, and where applicable, state taxes annually through a tax return.
Your Tax Return and Tax Documents
Your tax rate in the United States depends on a number of factors including your annual taxable income, number of claimed dependents, and any deductions to your income. Taxes can also be accessed by your state or local government. Taxes are withheld by Deel in accordance with Internal Revenue Service (IRS) and state and local requirements.
Your withholding rate is determined by your income, filing status, number of dependents claimed, and deductions to your income. You may also request additional amounts to be withheld from your paycheck. This information is collected on the W-4 Employee’s Withholding Certificate as part of your onboarding process. The IRS Tax Withholding Estimator can help you calculate your tax withholdings.
Mandatory contributions for Medicare and Social Security as well as any applicable local taxes are also deducted from your pay.
End of January
W-2 Wage and Tax Statement is available on Deel
Your Federal tax return is due
State tax return due dates vary state by state, but usually occur on or around the IRS due date.
Your W-2 Wage and Tax Statement will be available for download from the Deel Tax Documents tab at the end of January. Use this form to file your annual return.
The tax year in the United States is January 1 through December 31. Your Federal tax return is due by April 15. State Taxes are filed separately from your federal Tax Return. Due dates vary but usually occur on or around the IRS due date.
[ACCORDION] What forms do I need from Deel to file my annual tax return?
You need a Form W2 from Deel to file your taxes.
[ACCORDION] What is a Form W2?
Every employer engaged in a trade or business who pays remuneration, including noncash payments of $600 or more for the year (all amounts if any income, social security, or Medicare tax was withheld) for services performed by an employee must file a Form W-2 for each employee (even if the employee is related to the employer) from whom:
- Income, Social Security, or Medicare tax was withheld.
- Income tax would have been withheld if the employee had claimed no more than one withholding allowance or had not claimed exemption from withholding on Form W-4, Employee's Withholding Allowance Certificate.
[ACCORDION] How do I file my annual tax return?
Use Form W2 to file your annual tax return. As your employer, we are unable to provide specific advice on how to complete your tax forms, as this can depend on factors outside of employment. We suggest connecting with an accountant for the best support.
[ACCORDION] Can I change my withholdings throughout the year?
While you cannot change your tax rate, certain tax-deductible contributions like an eligible retirement savings plan may reduce your tax obligation.
Additional deductions or allowances claimed when you file your taxes may also reduce your tax obligation.
Any overpayments or underpayments as a result of your withholding rate will be reconciled when you file your tax return.
[ACCORDION] My withholding rate is different from the IRS website, why?
The IRS withholding rate tool is an estimate only. Changes in salary, bonuses, allowances or earnings that do or do not apply to the specified tax withholding will affect your withholding rate. In addition, some taxes are deducted based on a year-to-date gross amount or have a year-to-date maximum which can alter your net take home pay from payslip to payslip.
[ACCORDION] How are my expenses taxed?
Expenses are reimbursements for legitimate business expenses and are generally not taxable In rare exceptions they may be subject to tax.