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How to Use the Wage Bracket Withholding Tables

Author: Alice Gilman

An employer must withhold federal income taxes from employees' pay every pay period. The IRS has developed several methods an employer can use to fulfill this duty. The wage-bracket table method may be used by an employer that does not use automated payroll systems. The wage-bracket tables are issued before a calendar year ends, to be used by employers in the following year. The IRS publishes the wage-bracket tables in Publication 15 (Circular E), Employer's Tax Guide. The IRS has also issued wage-bracket percentage method tables that can be used with automated payroll systems. These tables can be found in Publication 15-A, Employer's Supplemental Tax Guide.