Welcome
Payroll

IRS Releases 2019 Percentage Method Withholding Tables

Dec. 12, 2018, 2:10 PM

The 2019 percentage method federal income tax withholding tables were issued Dec. 11 by the Internal Revenue Service in Notice 1036.

A withholding allowance is to be worth $4,200 in 2019, up from $4,150 in 2018, the Early Release Copies of the 2019 Percentage Method Tables for Income Tax Withholding showed.

Withholding allowances still are to be used in 2019 for the federal withholding methods and the Form W-4, Employee’s Withholding Allowance Certificate, the IRS said Nov. 26 in Notice 2018-92.

For 2019, the withholding allowance amounts by pay period are to be:

Weekly: $80.80

Biweekly: $161.50

Semimonthly: $175

Monthly: $350

Quarterly: $1,050

Semiannually: $2,100

Daily or miscellaneous (each day of payroll period): $16.20

The withholding tables have tax brackets of 10 percent, 12 percent, 22 percent, 24 percent, 32 percent, 35 percent, and 37 percent.

The 2019 employer and employee tax rate for the Social Security portion of the Federal Insurance Contributions Act taxes is 6.2 percent, unchanged from 2018, Notice 1036 said. The Social Security wage base is $132,900, up from $128,400 in 2018.

The tax rate for the employer and employee Medicare portion of the Federal Insurance Contributions Act taxes is 1.45 percent, unchanged from 2018, the notice said. Employers also are to withhold an extra 0.9 percent of Medicare tax when wages paid to an employee exceed $200,000 in 2019.

However, the combined income tax and FICA employee contribution withholding tables were eliminated because of the “unintended complexity and burden of the method,” the IRS said Nov. 26 in Notice 2018-92.

The withholding tables are to appear in Publication 15 (Circular E), Employer’s Tax Guide for use in 2019, which is to be posted on IRS.gov in December, the notice said.

To contact the reporter on this story: Jamie Rathjen in Washington at jrathjen@bloombergtax.com. To contact the editors responsible for this story: Michael Baer at mbaer@bloombergtax.com and Michael Trimarchi at mtrimarchi@bloombergtax.com.

To read more articles log in. To learn more about a subscription click here.