10. Alternative Methods for Figuring Withholding You may use various methods of figuring income tax withholding. Themethods described below may be used instead of the common payrollmethods provided in Circular E. Use the method that best suits yourpayroll system and employees. Annualized wages.Using your employee's annual wages, figure the withholding usingthe Percentage Method, Table 7-Annual Payroll Period, inCircular E. Divide the amount from the table by the number of payrollperiods, and the result will be the amount of withholding for eachpayroll period. Average estimated wages.You may withhold the tax for a payroll period based on estimatedaverage wages, with necessary adjustments, for any quarter. Fordetails, see Regulations section 31.3402(h)(1)-1. Cumulative wages.An employee may ask you, in writing, to withhold tax on cumulativewages. If you agree to do so, and you have paid the employee for thesame kind of payroll period (weekly, biweekly, etc.) since thebeginning of the year, you may figure the tax as follows: Add the wages you have paid the employee for the current calendaryear to the current payroll period amount. Divide this amount by thenumber of payroll periods so far this year including the currentperiod. Figure the withholding on this amount, and multiply thewithholding by the number of payroll periods used above. Use thepercentage method shown in Circular E. Subtract the total withholdingcalculated from the total tax withheld during the calendar year. Theexcess is the amount to withhold for the current payroll period. (SeeRev. Proc. 78-8, 1978-1 C.B. 562, for an example of the cumulativemethod.) Part-year employment.A part-year employee who figures income tax on a calendar-yearbasis may ask you to withhold tax by the part-year employment method.The request must be in writing and must contain the followinginformation: The last day of any employment during the calendar year withany prior employer. A statement that the employee uses the calendar yearaccounting period. A statement that the employee reasonably anticipates he orshe will be employed for a total of no more than 245 days in allterms of continuous employment Reservacion de hotel barato Budardalur(defined below) during thecurrent calendar year. Complete the following steps to figure withholding tax by thepart-year method: Add the wages to be paid to the employee for the currentpayroll period to any wages you have already paid the employee in thecurrent term of continuous employment. Add the number of payroll periods used in step 1 to thenumber of payroll periods between the employee's last employment andcurrent employment. To find the number of periods between the lastemployment and current employment, divide (a) the number of calendardays between the employee's last day of earlier employment (or theprevious December 31, if later) and the first day of currentemployment by (b) the number of calendar days in the current payrollperiod. Divide the step 1 amount by the total number of payrollperiods from step 2. Find the tax in the withholding tax tables on the step 3amount. Be sure to use the correct payroll period table and to takeinto account the employee's withholding allowances. alberghi a LeuvenMultiply the total number of payroll periods from step 2 bythe step 4 amount. Subtract from the step 5 amount the total tax alreadywithheld during the current term of continuous employment. Any excessis the amount to withhold for the current payroll period. cheap hotels in Alicante(See Regulations section 31.3402(h)(4)-1(c)(4) for examples ofthe part-year method.) Term of continuous employment.A term of continuous employment may be a single term or two or morefollowing terms of employment with the same employer. A continuousterm includes holidays, regular days off, and days off for illness orvacation. A continuous term begins on the first day an employee worksfor you and earns pay. It ends on the earlier of the employee's lastday of work for you or, if the employee performs no services for youfor more than 30 calendar days, the last workday before the 30-dayperiod. If an employment relationship is ended, the term of continuousemployment is ended, even if a new employment relationship isestablished with the same employer within 30 days. Other methods.You may use other methods and tables for withholding taxes, as longas the amount of tax withheld is consistently about the same as itwould be under the percentage method shown in Circular E. If youdevelop an alternative method or table, you should test the full rangeof wage and allowance situations to be sure that they meet thetolerances contained in Regulations section 31.3402(h)(4)-1 as shownin the chart below. Table