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I think I should have left the "End of process." in the quote, because this makes more sense. It's not the end of the process. The taxing authority sends you

I think I should have left the "End of process." in the quote, because this makes more sense. It's not the end of the process. The taxing authority sends you an estimate, you adjust based on a few factors they didn't account for and send it back. That still raises the question, though, of how your employer knows enough about your tax situation to not significantly over or under withhold. If my wife and I just relied on the basic IRS calculations on the W-4 and didn't specify additional withholding by dollar amount we would end up owing thousands, possibly over $10,000, the following April (before penalties). How do Ireland and others avoid that?

Macha 6y ago
This is why I specified for 90% of people. Most people don't have significant taxable income beyond employment (their only other income being savings account interest which is handled by your bank by a similar but separate system), so their tax liability is their income tax on their employment. A lot of people in the software industry specifically might have significant investments, shares, maybe rental income, etc, and then you do need to specifically inform the government about those, but this isn't the case for the 90%.
nurbel 6y ago
In France, my employer gets a percentage from the tax administration that they withold from the salary. If my financial situation changes, I can update my previsional income online