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Is it possible to always use the wage-bracket method to calculate an employees federal income tax withholding for a pay period?

April 26, 2017CALCULATE employee federal income tax method pay period possible wage-bracket withholding

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Is it possible to always use the wage-bracket method to calculate an employees federal income tax withholding for a pay period?

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No, the wage-bracket tables have an upper limit of earnings. The percentage method must be applied for any employee who earns more than the upper limit listed on the wage-bracket table or who claims more than 10 exemptions.