How to Calculate 2020 Federal Income Withhold Manually (with 2019 and Earlier W4 form)

(If your employee filled out the new 2020 Form W4, follow this guide)


ezPaycheck payroll software speeds up and simplifies payroll tax calculation, paycheck printing and tax reporting for small businesses. However if you like to calculate the taxes manually, you can find the step by step guide below.

Follow the steps in this sample if the Form W-4 is from 2019 or earlier, or if the Form W-4 is from 2020 or later and the box in Step 2 of Form W-4 is NOT checked.

Example: Karen is married filling jointly, with 1 allowance. Her salary rate is $39000. She receives one paycheck each month.

Steps to calculate the 2020 tax manually

1. Her yearly standard deduction is $4,300.00

3. Her yearly taxable income is:

39,000-4,300=$34,700.00

4. Yearly Federal tax

Check the yearly tax table for married person
https://www.halfpricesoft.com/federal_income_tax_2020.asp

1,975 + 12% x (34,700-31,650.00)=$2,341

5. For each paycheck, the federal tax is:

$2,341/12=$195.08

If you generate the paycheck with ezPaycheck payroll software, you will see the same result there.

The employee set up

Add a new paycheck and ezPaycheck will calculate the 2020 taxes automatically.

More Information

2020 Federal tax table

How to calculate federal tax automatically and withhold it from each paycheck

How to create after the fact paychecks and generate the paystubs

How to make federal income tax deposit

Why the federal income tax is not correct on paystub

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