Federal Income Tax (FIT) — Payroll Definition

Federal Income Tax (FIT) paystub meaning: Tax withheld from your paycheck based on your W-4 elections and IRS tax brackets. Codes: FWT / FIT / FED.

Tax withheld from your paycheck based on your W-4 elections and IRS tax brackets.

Federal Income Tax (FIT) is the tax your employer withholds from each paycheck based on the information you provided on Form W-4. The amount withheld depends on your filing status, number of dependents, additional withholding, and the current IRS tax brackets (10% to 37% for 2026). Unlike FICA, the amount withheld is an estimate — your actual tax liability is reconciled when you file your annual tax return. If too much was withheld, you get a refund; too little means you owe.

Tax entries on a pay statement depend on taxable wages, current employee elections, filing status, pay frequency, jurisdiction, and current agency instructions. Compare the current-period amount with year-to-date totals and the employer-issued record before treating it as final.

When this term appears on a statement, read its label, current amount, year-to-date amount, pay-period context, and any adjacent rate or hours together. Resolve a mismatch with the original issuer or the cited authority rather than changing a record to force a preferred result.