re: Employee Payroll Tax Withholdings-Question

Yes.
The rental income goes on Schedule E of the return. The income is then reduced by the expenses associated with the property. The net amount is what you include as part of your adjusted gross income.

You then still get to take your standard deduction and personal expemption to get to yout taxable income.

If you file your own return, or use turbo tax, I would highly suggested using a CPA this year. You can see how everything is properly reported, and you can always go back after that.