Income Tax Withholding Assistant for Employers

 

The Income Tax Withholding Assistant is a spreadsheet that will help small employers calculate the amount of federal income tax to withhold from their employees’ wages. It will help you as you transition to the new Form W-4 for 2020 and later.

Use the Income Tax Withholding Assistant if you typically use Publication 15-T to determine your employees’ income tax withholding. If you use an automated payroll system, you do not need to use the Assistant.

NOTE: the Income Tax Withholding Assistant will no longer be available after 2022, so use 2022 to become familiar with how to use the worksheets and tables in Publications 15-T. Tip: During 2022, practice using the worksheets and tables then verify that you get the same results when you use the Income Tax Withholding Assistant.

The Tax Withholding Assistant is available in Excel format.

Download the Excel Spreadsheet XLSX

How to Use the Tax Withholding Assistant

Open the Tax Withholding Assistant and follow these steps to calculate your employees’ tax withholding for 2022. Be sure that your employee has given you a completed Form W-4. The Assistant can accommodate Forms W-4 from both before and after the change in format introduced in 2020.

You will want to save a separate copy of the spreadsheet for each employee.

  • Indicate how frequently you pay your employee.
  • Specify which version of Form W-4 applies to the employee (before 2020 or after).
  • Enter the requested information from your employee’s Form W-4.
  • Save a copy of the spreadsheet with the employee’s name in the file name.
  • Each pay period, open each employee’s Tax Withholding Assistant spreadsheet and enter the wage or salary amount for that period. The spreadsheet will then display the correct amount of federal income tax to withhold.