Why Needed
When an employee works for two or more employers, each employer applies credit points and lower brackets independently. Without coordination, total withholding is too low, resulting in a tax debt at year-end. Tax coordination determines: which employer applies credit points, the withholding rate for each employer, and ensures correct total tax is withheld.
How to Coordinate
Coordination can be done online through the ITA website (Shaam) or by visiting the local assessment office. The result is a coordination certificate specifying the withholding rates for each employer.
Important Note: The information on this website is for general informational purposes only and does not constitute professional tax advice. Consult a qualified tax advisor before making financial decisions.