IRS has published an excel spreadsheet named Income Tax Withholding Assistant to help small employers compute the amount of federal income tax to withhold from their employees’ wages. Further, the spreadsheet is designed to help employers for the transition to the new Form W-4 for 2020.
Online Income Tax Withholding Calculator
We earlier created a paycheck tax withholding calculator .But this time, the withholding calculator is for employers and is based entirely on the Income Tax Withholding Assistant spreadsheet published by IRS.
Before you start using the tax withholding calculator, make sure that you have a completed Form W-4 from your employee. The tax withholding calculator can accommodate both the 2020 Form W-4 and Forms W-4 from prior years. Just, fill up the input fields , and the amount of tax to be withheld will be computed automatically
Who should use online tax withholding calculator?
If you determine your employees’ income tax withholding by following Publication 15-T .then you should use this tax calculator. However, if you use an automated payroll system for your business, you do not need to use the Assistant.