Posted in: IRS

Tax Withholding Tables

The tax withholding tables are used by employers to figure out how much tax needs to be withheld from the employee’s pay. The federal law requires all employers to withhold tax from employees’ salary. Since it is mandatory for everyone to pay federal income taxes during the course of the tax year, employees have no other choice but to withhold tax.

As for how the federal tax withholding is determined, the employer will use the employee’s Form W-4 and put it side by side to the tax withholding tables. For the most part, the filing status, pay frequency, employee’s salary, and the information provided on Form W-4 will determine the amount. Also, you can take a look at the previous tax year’s tax brackets to get an estimate of how much the employee is likely to owe to the IRS when a tax return is filed.

How to get the tax withholding tables?

The Internal Revenue Service releases all the documents and instructions regards to tax withholding with Publication 15-T. This not only includes the tax withholding tables but the following as well.

  • Percentage Method Tables for Automated Payroll Systems
  • Wage Bracket Method Tables for Manual
    Payroll Systems With Forms W-4 From
    2020 or later
  • Wage Bracket Method Tables for Manual
    Payroll Systems With Forms W-4 From
    2019 or earlier
  • Percentage Method Tables for Manual
    Payroll Systems With Forms W-4 From
    2020 or later
  • Percentage Method Tables for Manual
    Payroll Systems With Forms W-4 From
    2019 or earlier
  • Alternative Methods for Figuring
    Withholding
  • Tables for Withholding on Distributions of
    Indian Gaming Profits to Tribal Members

All and all, these give enough information and resources to the employers to withhold the right amount of tax. There is also a huge part of Form W-4. If Form W-4 is not filed accurately, more or less tax than needed may be withheld. This eventually affects the employee’s tax refund or the employee may not even get a tax refund at all.

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