The IRS released the 2025 Publication 15-T, Federal Income Tax Withholding Methods, which describes how to figure federal income tax withholding using the percentage method and the wage bracket method and describes alternative methods for figuring withholding.
The publication explains how to withhold income tax based on pre-2020 Forms W-4, Employee’s Withholding Certificate, and 2020 or later Forms W-4.
Reminders
Tax withholding estimator. Employees may use the IRS’s tax withholding estimator when completing 2025 Forms W-4 or W-4P.
Nonresident aliens. Publication 15-T provides the amounts that employers should add to the wages paid to nonresident alien employees working in the United States when figuring their income tax withholding.
Electronic submissions of Form W-4. Publication 15-T provides information for employers that establish an electronic system to electronically receive Forms W-4 and W-4P.
To learn more about federal and state laws, regulations, and information to keep your company’s payroll operations in compliance, check out Payroll Source Plus!
Rayna Alexander, Esq., is Editor of Payroll Information Resources for PayrollOrg.