Want to Read More? To continue reading this article, please Log in or Register Now

How to Use the Percentage Method Withholding Tables With Pre-2020 Forms W-4

Author: Alice Gilman

Employers must withhold federal income taxes from their employees' pay every pay period. The IRS provides several methods employers can use to fulfill this duty. The percentage method of withholding is most commonly used by employers with an automated payroll system and third-party payroll service providers. The percentage method withholding tables and worksheets are issued before the end of each calendar year for employers to use in the following year. They are published in IRS Publication 15-T, Federal Income Tax Withholding Methods.