cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
Not applicable

Change federal witholding tax percentage

I want to make federal withholding tax to 15 percent for one employee.

Solved
Best answer 09-09-2019

Accepted Solutions
Established Community Backer ***

The Feds do not permit % withholding.

The Feds do not permit % withholding.

10 Comments
Established Community Backer ***

The Feds do not permit % withholding.

The Feds do not permit % withholding.

Not applicable

Wrong. It's not the Feds that don't permit % withholding...

Wrong. It's not the Feds that don't permit % withholding for Federal withholding, its Quickbooks that doesn't offer it. Other payroll services do.
Established Community Backer ***

The Feds specifically do not allow a Flat % withholding f...

The Feds specifically do not allow a Flat % withholding for income tax for regular pay activities. They require you to use the Tax tables.




It's right here, Number 17:



https://www.irs.gov/publications/p15/ar02.html#en_US_2017_publink1000254685





The Flat Rate you might be thinking of, only applies to Supplemental or One-Time (such as bonuses at year end). At that point, it is one of 3 methods you are allowed to use.



Resources:




https://www.mcguirewoods.com/Client-Resources/Alerts/2008/7/IRS-Clarifies-Income-Tax-Withholding-Req...



https://payroll.intuit.com/support/kb/2000430.html



Hope that helps.
Not applicable

As long as you are covering what is required based on w-4...

As long as you are covering what is required based on w-4 info, you sure can use a percentage.  I have a few different employers, and one of them, I have withheld a flat rate of 15% for Federal Withholding Taxes, thru a nationally recognized payroll service.
Established Community Backer ***

I can't debate IRS regulations. I can tell you a Lot of p...

I can't debate IRS regulations. I can tell you a Lot of payroll services do things Incorrectly and I have caught them at it, while trying to help my QB clients. You need to debate IRS requirements with your Congressmen and Senators.
Not applicable

Why would I need to debate IRS requirements with anyone f...

Why would I need to debate IRS requirements with anyone from a member of Congress (Senators are members of Congress)? I have 15% withheld each time from my gross, no matter what my gross is, it is paid to the IRS and goes on my W-2. There is absolutely nothing wrong with taking a straight percentage of your gross pay as withholding for FWT.
Established Community Backer ***

I've been thinking about this, and I believe you are usin...

I've been thinking about this, and I believe you are using Different terminology for the same thing. "Tax Table Percentage Method" is not the same as Flat % rate. This is seen in the Linked resources I offered. I hope that explains your confusion.
Not applicable

No, I am not confused.  I use 15%.  If I earn $1000 a wee...

No, I am not confused.  I use 15%.  If I earn $1000 a week, I have $150 FWT.  If I earn $2000, I have $300 FWT.  The IRS does not give one hoot that my withholding is being tied to a straight percentage.  People have been using straight percentages since I started in the business world over 20 years ago. I'm sure they've been used longer than that. Never once did I hear, until now, someone say, "you can't do that".  It's actually much more helpful for tax planning purposes.  Ask another tax professional if you don't believe me.
Established Community Backer ***

You have to stop beating the dead horse; the IRS clearly...

You have to stop beating the dead horse; the IRS clearly "cares" as their literature tells you it is not allowed. Did you read any of those links? You cannot make $200,000 a year and withhold a flat 15%; the Tax Tables have a % method, but it is not Flat. That is the point you seem to be missing. You can file more Exemptions on your W4, to the point that you have $0 income tax withheld, then put a $ amount into the payroll. You seem to still be confusing "tax table percentage method" and "flat %" and I have been trying to show you these are Two Different methods of the 3 allowed, per the IRS regulations.
Established Community Backer ***

I'm closing this topic, since it does no one any good to...

I'm closing this topic, since it does no one any good to Debate the point. Read the IRS regulations for yourself, folks.

Need to get in touch?

Contact us