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FITW meaning means the Federal Income Tax Withholding. It is that which is automatically deducted out of an employee paycheck to pay the federal income taxes due to the IRS. FITW is not a new tax or charge, it is merely a way of raising revenue tax in advance. Employers determine the FITW using federal tax tables and the information supplied by employees including marital status and allowances. The total amount of FITW withheld is applied to your end-of-year tax bill when you have a filing of your annual tax returns.
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