14. Advance Earned Income Credit (EIC) Payment Methodshotels BirminghamTo figure the advance EIC payment, you may use either the WageBracket Method or the Percentage Method explained below. With eithermethod, the number of withholding allowances an employee claims onForm W-4 is not used in figuring the advance EIC payment. Nor does itmatter that the employee has claimed exemption from income taxwithholding on Form W-4. See section 6 for an explanation of theadvance EIC. If you use the wage bracket tables on page 44 through 45, figurethe advance EIC payment as follows. Find the employee's gross wages before any deductions using theappropriate table. There are different tables for (a)single or married employees without spouse filing a certificateand (b) married employees with both spouses filingcertificates. Find the amount of the advance EIC payment shown in theappropriate table for the amount of wages paid. Percentage MethodIf you do not want to use the wage bracket tables to figure howmuch to include in an employee's wages for the advance EIC payment,you can use the percentage computation based on the appropriate ratetable. Find the employee's gross wages before any deductions in theappropriate table on page 42 through 43. There are different tablesfor (a) single or married employees without spouse filing acertificate and (b) married employees with both spousesfiling certificates. Find the amount of the advance EIC payment shownin the appropriate table for the amount of wages paid. Rounding.Levoca Top-HotelbewertungenThe wage bracket tables for advance EIC payments have been roundedto whole dollar amounts. If you use the percentage method for advance EIC payments, thepayments may be rounded to the nearest dollar. The rules for roundingdiscussed in section 13 apply to advance EIC payments. |