globaltaxnews.ey.comSign up for tax alert emailsPrintDownload

04 December 2019

IRS issues early release of the 2020 percentage method tables for automated payroll systems

The IRS has issued an early release of the 2020 annual percentage tables. Later this month, the IRS will publish the final Publication 15-T, Federal Income Tax Withholding Methods and Publication 15 (Circular E), Employer's Tax Guide.

As explained in draft Publication 15-T, for 2020 and later years, there are two tables used to compute federal income tax withholding:

  • Standard Withholding Rate Schedules. This table is used if the employee's Form W-4 is from 2019 or earlier or if the box in step 2 of the Form W-4 for 2020 and later years is not checked.
  • Form W-4, Step 2, Checkbox, Withholding Rate Schedules. This table is used if the Form W-4 is from 2020 or later years and the box in step 2 of Form W-4 is checked.

These updated income tax withholding tables are designed to work with the extensive changes being made to the 2020 Form W-4. The final 2020 Form W-4 will be released by the IRS later this month.

The 2020 annual percentage withholding tables for automated payroll systems are reproduced in the attachment.

Contact Information
For additional information concerning this Alert, please contact:

Workforce Advisory Services - Employment Tax Advisory Services

—————————————
ATTACHMENT

EY Payroll News Flash

Document ID: 2019-6509

 
 

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.

 

Copyright © 2025, Ernst & Young LLP.

 

All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.

 

Any U.S. tax advice contained herein was not intended or written to be used, and cannot be used, by the recipient for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions.

 

"EY" refers to the global organisation, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.

 

Privacy  |  Cookies  |  BCR  |  Legal  |  Global Code of Conduct Opt out of all email from EY Global Limited.

 


Cookie Settings

This site uses cookies to provide you with a personalized browsing experience and allows us to understand more about you. More information on the cookies we use can be found here. By clicking 'Yes, I accept' you agree and consent to our use of cookies. More information on what these cookies are and how we use them, including how you can manage them, is outlined in our Privacy Notice. Please note that your decision to decline the use of cookies is limited to this site only, and not in relation to other EY sites or ey.com. Please refer to the privacy notice/policy on these sites for more information.


Yes, I accept         Find out more