Example $4-3$ To use the $2023$ Wage Bracket Method for Manual Payroll Systems With Forms W$-4$ From $2020$ or Later using Standard Withholding,

follow the steps illustrated below.

Step $1$

Select the withholding table that applies to the employee's pay $,=>,$ Adrienne Huff is married filing jointly $($MFJ$).$ She is paid weekly

period.

Step $2$

Locate the wage bracket $($the first two columns of the table$)$ in $,=>,$ Locate the appropriate wage bracket $($see Figure $4\mathrm{.}7)$:

which the employee's gross wages fall.

Step $3$

Follow the line for the wage bracket across to the right to the

column showing the appropriate filing status with standard

withholding. Withhold this amount of tax.

at a rate of $$815.$

At least $$815$ but less than $$825$

Move across the line to the column showing Married Filing

Jointly, Standard withholding.

The tax to withhold is $$29.$

Withholding and $2023$ FICA rates have been used.

Click here to access the Percentage Method Tables.

Click here to access the Wage$-$Bracket Method Tables.

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TCheck My Work

a$.$ Use Percentage Method Tables to calculate federal income taxes withheld using filing status.

b$.$ Use Wage$-$Bracket Tables. At this point check your work by comparing parts a & b; these amounts should be very similar.

To compute the tax using the $2023$ Percentage Method for Manual Payroll Systems With Forms W$-4$ From $2020$ or Later using

Standard Withholding Rate Schedules, follow the steps illustrated below.

Step $1$

Determine the amount of gross wages earned, filing status,

adjustments on Form W$-4,$ and frequency of pay. Note: If the wage

ends in a fractional dollar amount, the wage may be rounded to the

nearest dollar. However, in this text, exact wages are used.

Step $2$

Determine the withholding tax by referring to the appropriate

Percentage Method Withholding Table $($see Figure $4\mathrm{.}6$ below$).$

Wilson Goodman, single $($S$),$ has no adjustments on his

Form W$-4$ and earns $$915\mathrm{.}60$ semimonthly.

Compute tax from Tax Table A$,$ Semimonthly, Standard

Witholding Rate Schedule, page T$-3.$

$($$$915\mathrm{.}60-$$$577\mathrm{.}00=$$$338\mathrm{.}6010\%=$$$33\mathrm{.}86+$$$0)=$

$$33\mathrm{.}86$

Example $4-4$

To use the $2023$ Wage Bracket Method for Manual Payroll Systems With Forms W$-4$ From $2020$ or Later using Standard Withholding,

follow the steps illustrated below.

Step $1$

Select the withholding table that applies to the employee's pay $,=>,$ Adrienne Huff is married filing jointly $($MFJ$).$ She is paid weekly

period.

Step $2$

Locate the wage bracket $($the first two columns of the table$)$ in $,=>,$ Locate the appropriate wage bracket $($see Figure $4\mathrm{.}7)$:

which the employee's gross wages fall.

Step $3$

Follow the line for the wage bracket across to the right to the

column showing the appropriate filing status with standard

withholding. Withhold this amount of tax.

at a rate of $$815.$

At least $$815$ but less than $$825$

Move across the line to the column showing Married Filing

Jointly, Standard withholding.

The tax to withhold is $$29.$

Withholding and $2023$ FICA rates have been used.

Click here to access the Percentage Method Tables.

Click here to access the Wage$-$Bracket Method Tables.