How Form 2220 Withholding 2023-2024

Hi, welcome to the easy payroll guide. In this lesson, we're going to be talking about how to use the IRS withholding tables to determine how much you should withhold from an employee's paycheck for federal withholding. There are two different methods for determining federal withholding, and in this video, we're going to focus on the wage bracket method. When determining how much to withhold from an employee's paycheck, you need to have the employee's W-4 form in front of you. This form contains all the necessary information to accurately calculate the tax. In this example, we have John Doe's withholding form. John is single and claims one allowance. The number of allowances is specified on line 5 of the form. All the information on the form is filled out by the employee, and you must use this information. John is paid on a bi-weekly basis, which means he is paid every other week. For this specific pay period, his wages are $720. This information is essential for the calculation. Once you have the necessary information, you will go to the IRS website Publication 15, starting on page 45. On this page, you will find the IRS withholding table. Pay attention to the marital status and pay period specified at the top of each table. Make sure they match the employee's details. In John's case, we would use the table for single individuals on a bi-weekly payroll period. Now, find the wage in the table. For John's wage of $720, we would refer to the line that says "at least $700, but less than $740." This is the range that includes his wage amount. Next, consider the number of allowances. John has one allowance, so we will use column 1 on the table. In column 1, for a wage of $720, it states John...