Wage Bracket Method

Under the wage-bracket method, the process is to navigate to the proper table for the company's payroll period and the employees marital status. Determine the intersection of withholding allowances and current wages which isolates the amount of withholding.

Scenario 1:

Wage Example is single with 3 withholding allowances. He earns and is paid $652.50 each week. What is the amount of withholding?

1. Steps	Description
   1.	Scroll through Publication 15 to the table titled Wage Bracket Method Tables for Income Tax Withholding.
   2.	Looking at the top of the table, locate Single PersonsWeekly Payroll Period.
   3.	In the far left column, scroll to locate At least $645 But less than $656.
   4.	Look for the intersection of the row of wage range from $645 to $656 and the column of "3" (withholding allowances).
   5.	Click the link to view the amount of tax withheld for Wage: Scenario_1.

Scenario 2:

(Continuing from Scenario 1) Wage Example tied the knot and earned a promotion (Woo Hoo!!). In order have a bit more in his paycheck, he should his allowances by one. Based on his promotion, he now earns and is paid $987.25 each week. What is the amount that should be withheld?

1. Steps	Description
   1.	Scroll through Publication 15 to the table titled Wage Bracket Method Tables for Income Tax Withholding.
   2.	Looking at the top of the table, locate Married PersonsWeekly Payroll Period.
   3.	In the far left column, scroll to locate At least $986 But less than $997.
   4.	Look for the intersection of the row of wage range from $986 to $997 and the applicable withholding allowance column.
   5.	Click the link to view the amount of tax withheld for Wage: Scenario_2.

Medal Points

To understand how the withholding amounts were determined for the Scenarios above, complete the following steps:

1. Click link: Publication 15.
2. Click to select 2019 Publ 15 (PDF): Circular E, Employer's Tax Guide.
3. The pfd launches.
4. Scroll the Table of Contents to view the topic titled Federal Income Tax Withholding Methods.
5. Click the associated page number, advancing to where this particular topic begins.

The IRS provides statutory wage tables for weekly, biweekly, semimonthly, monthly, daily or miscellaneous pay periods for married and single persons.

Tackle It

Note: Enter ALL values as positive numbers.

Michael Jordan earns $1,018 weekly. He has 2 allowances and is married.

Employee: Jordan, Michael
Weekly Earnings	$1,018.00
Federal Income Tax Withholding:	$fill in the blank 9a0c29042fecfef_2

Hope Solo has biweekly wages of $2,515. She is single and elected zero allowances.

Employee: Solo, Hope
Biweekly Earnings	$2,515.00
Federal Income Tax Withholding:	$fill in the blank 9a0c29042fecfef_3