Formula Tables for Percentage Method Withholding (for Automated Payroll Systems) Two formula tables for percentage method withholding are on pages26 and 27. The differences in the Alternative Percentage Methodformulas and the steps for figuring withheld tax for different payrollsystems are shown in this example. MARRIED PERSON Bled hotels(Weekly Payroll Period) Gmunden luxury hotelsIf wages exceeding the allowance amount are over $124but not over $931: Method: Income Tax Withheld: Percentage (Pub. 15) 15% of excess over $124 Alternative 1 (Page 26) 15% of such wages minus $18.60 Alternative 2 (Page 27) Such wages minus $124, times 15% ofremainder hotel rates Naples countryWhen employers use the percentage method in Circular E or theformula tables for percentage method withholding in this publication,the tax for the pay period may be rounded to the nearest dollar. Ifrounding is used, it must be used consistently. Withheld tax amountsshould be rounded to the nearest whole dollar by (1) dropping amountsunder 50 cents and (2) increasing amounts from 50 to 99 cents to thenext higher dollar. This rounding will be considered to meet thetolerances under section 3402(h)(4). Formula Tables 1 Formula Tables 2