Tax Withholding Tables

The tax withholding tables are used by employers to determine the amount of federal tax that needs to be withheld from an employee’s salary. The information provided on employee’s Form W-4 will be used along with it for correct tax withholding. If any of your employees did not produce a Form W-4, you will withhold tax at the highest single rate until they do so.

When figuring out the amount of federal income tax you need to withhold, there are a couple of things you need to factor in that is not included on Form W-4. These are the pay frequency and the employee’s annual salary. Since you’re going to withhold tax every time whenever the employee gets paid, calculating it according to the pay frequency is very important.

Employers can start off with the employee’s annual tax withholding and divide it by the pay frequency. Here is an example below.


Employee’s total federal tax withholding for the tax year: $5,000

Employee’s pay frequency for the year: 24 (twice a month)

5000 / 24 = $208

As you can see from the example above, the total tax withholding of the employee is $5,000. Divide that by 24 which is the pay frequency, you will have to withhold $208 from the employee’s paycheck. This must be done when payroll is processed.

You can get tax withholding tables from the link below. The IRS published tax withholding tables for the new tax year in Publication 15 along with other guidelines for employers. The federal tax withholding tables along with instructions for withholding tax can be obtained from the link below.

Tax Withholding Tables for Employers 2020

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