IRS Publication 15
What Is the IRS Publication 15?
IRS Publication 15: Employer's Tax Guide is a document distributed by the Internal Revenue Service detailing an employer's responsibilities regarding filing and reporting tax information. The document covers the withholding, storing, reporting, paying, and adjusting of taxes for employees (although not for the actual corporation). IRS Publication 15 is also alluded to as Circular E.
Understanding IRS Publication 15
IRS Publication 15 is utilized to decide federal income tax, however not state or local taxes. The Tax Guide details federal income tax amounts for payroll withholdings, including Medicare and Social Security amounts. Employers ought to allude to their state's tax rules to guarantee that legitimate state income tax amounts are withheld from employees' paychecks. Extra tax information is also available in IRS Publication 15-A.
Beforehand, perhaps of the main feature contained in the Employer's Tax Guide was the Percentage Method Tables and Wage Bracket Method Tables for Income Tax Withholding. However, for the 2020 Employer's Tax Guide, these withholding tables have been eliminated. These tables — and the employer directions on how to figure employee withholding — are now remembered for Publication 15-T, Federal Income Tax Withholding Methods. The IRS also gives an assistant on their website, called the Income Tax Withholding Assistant for Employers, to assist employers with sorting out employee withholding.
These wage bracket tables assist an employer with knowing exactly which percentage of their employees' payroll they ought to withholding for taxes each pay period to consent to federal tax regulations. To decide the tax withholding amount, an employee must also file a W-4 Form, which can be updated as situations change in the employee's life, like a new family member. If an employee doesn't file a W-4, the Employer's Tax Guide also details what amount to withhold instead.
How to Use IRS Publication 15
The easiest way to access IRS Publication 15 is typically online through the IRS website. The Employer's Tax Guide contains any updates and new legislative changes appropriate to employers, along with the following segments:
- Information about Employer Identification Numbers, or EINs
- Legal meanings of employees
- Hiring and paying family employees
- Employee's Social Security Numbers or SSNs
- Wages and other compensation details
- How to report and pay tips
- Any supplemental wages
- Payroll Periods
- Withholding from employee's wages
- Required notice to employees about the earned income credit or EIC
- Saving taxes
- Filing Form 941 or Form 944
- Reporting Adjustments to Form 941 or Form 944
- Federal Unemployment, or FUTA, Tax
Features
- IRS Publication 15: Employer's Tax Guide is a document distributed by the Internal Revenue Service detailing an employer's responsibilities regarding filing and reporting tax information.
- The document covers the withholding, saving, reporting, paying, and revising of taxes for employees (although not for the actual corporation).
- The Tax Guide details federal income tax amounts for payroll withholdings, including Medicare and Social Security amounts.
