13. Income Tax Withholding Methods There are several methods to figure the income tax withholding foremployees. The most common are the wage bracket method and thepercentage method. Wage Bracket Method Under the wage bracket method, find the proper table (on pages 22through 41) for your payroll period and the employee's marital statusas shown on his or her Form W-4. Then, based on the number ofwithholding allowances claimed on the Form W-4 and the amount ofwages, find the amount of tax to withhold. If your employee isclaiming more than 10 withholding allowances, see below. Note:play pai gow onlineIf you cannot use the wage bracket tables because wages exceedthe amount shown in the last bracket of the table, use the percentagemethod of withholding described below. Be sure to reduce wages by theamount of total withholding allowances (shown in the table on thispage) before using the percentage method tables on pages 20 and 21. Adjusting for employees claiming over 10 withholdingallowances.To adapt the wage bracket tables for employees who are claimingover 10 allowances: Multiply the number of withholding allowances that is over10 by the allowance value for the payroll period. (The allowancevalues are in the Percentage Method--2000 Amount for OneWithholding Allowance table on this page.) Subtract the result from the employee's wages. luxury hotels in ValkenburgOn this amount, find and withhold the tax in the column for10 allowances. This is a voluntary method. If you use the wage bracket tables, youmay continue to withhold the amount in the "10" column when youremployee has more than 10 allowances, using the method above. You canalso use the other methods described below. Percentage Method If you do not want to use the wage bracket tables on pages 22through 41 to figure how much income tax to withhold, you can use thepercentage method based on the table on this page and the appropriaterate table. This method works for any number of withholding allowancesthe employee claims and any amount of wages. Use these steps to figure the income tax to withhold under thepercentage method: Multiply one withholding allowance (see table on this page)by the number of allowances the employee claims. Subtract that amount from the employee's wages. Determine the amount to withhold from the appropriate tableon page 20 or 21. 1999 percentage method table Example.An unmarried employee is paid $500 weekly. This employee has a FormW-4 in effect claiming two withholding allowances. Using thepercentage method, figure the income tax withholding as follows: 1. Total wage payment $500.00 2. One allowance $53.85 3. Allowances claimedon Form W-4          2 4. Line 2 times line 3     107.70 5. Amount subject towithholding (subtract line 4 from line 1) $392.30 6. Tax to be withheldon $392.30 from Table 1-- single person, page 20      51.20 To figure the income tax to withhold, you may reduce the last digitof the wages to zero, or figure the wages to the nearest dollar. Annual income tax withholding.Figure the income tax to withhold on annual wages under thePercentage Method for an annual payroll period. Then prorate the taxback to the payroll period. Example.A married person claims four withholding allowances. She is paid$1,000 a week. Multiply the weekly wages by 52 weeks to figure theannual wage of $52,000. Subtract $11,200 (the value of fourwithholding allowances annually) for a balance of $40,800. Using Table7--Annual Payroll Period, the annual withholding is $5,120.50.Divide the annual amount by 52. The weekly withholding is $99.09. Alternative Methods of Income Tax Withholding hotel room in HusavikRather than the Percentage or Wage Bracket Methods described above,you can use an alternative method to withhold income tax. Pub.15-A, Employer's Supplemental Tax Guide, describes thesealternative methods. Rounding.If you use the percentage method or alternative methods for incometax withholding, you may round the tax for the pay period to thenearest dollar. The wage bracket tables are already rounded for you. If rounding is used, it must be used consistently. Round withheldtax amounts to the nearest whole dollar by (1) dropping amounts under50 cents and (2) increasing amounts from 50 to 99 cents to the nexthigher dollar. For example, $2.30 becomes $2, and $2.80 becomes $3.