Percentage Method 2020 and Later The Tax Cust and Jobs Act (TCJA) eliminated personal withholding allowances (see Percentage Method 2019 and Earlier ) Employees hired prior to 2020 will not have to complete the 2020 Form W 4 unless they wish to make a change to Form W 4 currently on file with their employer And, going forward, employees hired in 2020 will use the 2020 Form W 4, using one of three filing statuses married filing jointly (MFJ), single (S) or married filing separately (MFS), and head of household (HOH) Employers will use Publication 15 T to compute withholding the proper withholding Note Assume for purposes here that the STANDARD withholding rate schedule is used Wage Example 's brother in law, Exceptional , divorced last year and has custody of his two children He earns $4,057 69 biweekly, has no adjustments on his Form W 4, and files as Head of Household Description Calculation 1 Begin with the amount of gross wages, $4,057 69 $4,057 69 2 Using the 2020 percentage table, identify the correct bracket Wages starting at $4,006 but not over $6,998 $ 4,057 69 (4,006) 3 Compute the excess wage over the starting wage for this bracket $51 69 4 Multiply the excess by the tax rate in the table (24 ) x 24 $12 41 5 Add the bracket minimum tax, $506 12 506 12 6 Add the two amounts together which equals Perfect's total withholding $518 53 Tackle It Natasha Hastings is married filing jointly and paid $1,065 55 on a weekly basis Note Enter ALL values as positive numbers and round amounts to two decimal places unless instructed otherwise To properly compute the withholding, click here to access Publication 15 T Description 1 Begin with gross wages $ 2 Identify the correct bracket (Hint Use With Forms W 4 From 2020 or Later table) Wages starting at $ but not over $ 3 ( ) Determine the value over the starting wage for this bracket $ 4 Multiply the overage by the tax rate in the table (enter as a decimal) ( )6 $ 5 Add the bracket minimum tax 6 Add the two amounts together Total withholding for Natasha Hastings $

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Percentage Method: 2020 and Later The Tax Cust and Jobs Act (TCJA) eliminated personal withholding allowances (see Percentage Method: 2019 and Earlier ). Employees hired

Percentage Method: 2020 and Later

The Tax Cust and Jobs Act (TCJA) eliminated personal withholding allowances (see Percentage Method: 2019 and Earlier). Employees hired prior to 2020 will not have to complete the 2020 Form W-4 unless they wish to make a change to Form W-4 currently on file with their employer.

And, going forward, employees hired in 2020 will use the 2020 Form W-4, using one of three filing statuses: married filing jointly (MFJ), single (S) or married filing separately (MFS), and head of household (HOH). Employers will use Publication 15-T to compute withholding the proper withholding.

Note: Assume for purposes here that the STANDARD withholding rate schedule is used.

Wage Example's brother-in-law, Exceptional, divorced last year and has custody of his two children. He earns $4,057.69 biweekly, has no adjustments on his Form W-4, and files as Head of Household.

	Description		Calculation
1.	Begin with the amount of gross wages, $4,057.69.		$4,057.69
2.	Using the 2020 percentage_table, identify the correct bracket. Wages starting at $4,006 but not over $6,998.	$ 4,057.69 (4,006)
3.	Compute the excess wage over the starting wage for this bracket.	$51.69
4.	Multiply the excess by the tax rate in the table (24%)	x .24	$12.41
5.	Add the bracket minimum tax, $506.12		506.12
6.	Add the two amounts together which equals Perfect's total withholding.		$518.53

Tackle It Natasha Hastings is married filing jointly and paid $1,065.55 on a weekly basis. Note: Enter ALL values as positive numbers and round amounts to two decimal places unless instructed otherwise. To properly compute the withholding, click here to access Publication 15-T.

Description 1. Begin with gross wages. =$

2. Identify the correct bracket. (Hint: Use With Forms W-4 From 2020 or Later table) Wages starting at $ but not over $

3 . ( ) Determine the value over the starting wage for this bracket. =$

4. Multiply the overage by the tax rate in the table (enter as a decimal). (= )6 =$

5. Add the bracket minimum tax. =

6. Add the two amounts together = Total withholding for Natasha Hastings. =$