Federal Withholding Tables

Employers have choices when it comes to withholding taxes from the paychecks of their employees. The federal withholding tables are based on three different methods of calculating withholding amounts. Employers can use the Wage Bracket method, the Percentage method, or the Alternative method. The withholding methods are based on the information the employer receives from the employee’s W-4 tax form.

QuickBooks Online Payroll will calculate employee’s checks instantly. Employers can calculate federal withholding table tax by using payroll software for their employees. Federal and State withholding is calculated for you along with unemployment tax as well.

The federal withholding tables changed due to the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. The employee tax rate for social security is 4.2%. The social security tax rate for employers did not change which remains at 6.2%. The wage base limit is $106,800 for social security. Both employees and employers pay the Medicare tax rate of 1.45% The Medicare tax does not have a wage base limit.

If you want to try to calculate federal withholding without payroll software you can follow the steps for each method. The Employer’s Tax Guide is available through the IRS with the federal withholding table information. I strongly suggest you use payroll software to calculate the federal withholding amounts for your employees.

It would be more profitable to spend your time running your business and let the payroll software do all the hard accounting work for you. Your stress levels will be reduced and you will have confidence knowing your federal and state taxes are correctly taken out of your worker’s paychecks. You will also have your employer taxes paid correctly and on time avoiding stiff penalties and interest.

QuickBooks Payroll Offers:   

• The ability to track your sales
• Manage business expenses
• Manage your inventory
• Manage payroll and print checks
• And so much more….

Take a look at the QuickBooks Payroll software available to you. Managing your business has never been easier than it is today. You will find the payroll software that suits all of your business needs. You will have all the tools you need tailored to your needs and industry. Try QuickBooks Payroll Online today. The first 30 days are FREE.