The 2020 percentage-method tables for automated systems were issued Nov. 26 by the Internal Revenue Service on the agency’s website.
The automated percentage method is the only method in Publication 15-T, “Federal Income Tax Withholding Methods,” that is compatible with 2020 Forms W-4, Employee’s Withholding Certificate, and forms issued before 2020. The method also is the only one that requires annualizing wages. The publication’s two wage-bracket method tables and two manual percentage-method tables are year-specific and are to allow withholding on a pay-period basis.
The automated percentage-method’s Step 2, check-box schedules are to be used with 2020 Forms W-4, when ...
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