Payroll Taxes

Using the wage-bracket method, how is withholding determined for employees who claim more than 10 allowances?

The wage-bracket method can be used if the employee claims up to 10 employees. If an emplyee claims mroe than 10 allowances, the tables can be modified as foolows to determine the appropriate federal income tax withholding:

1. Multiply the number of allowances in excess of 10 by the allowance for the period (Table 5 page 35 of IRS Publication 15)
2. Subtract the value from the employee's taxable wages
3. On this amount, use the wage-bracket tables using the column for 10 allowances