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.

1. Her yearly standard deduction is $4,300.00

3. Her yearly taxable income is:


4. Yearly Federal tax

Check the yearly tax table for married person

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

5. For each paycheck, the federal tax is:


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

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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    Related Links:

  • ezPaycheck Quick Start Guide

  • How a add a new company account

  • How to handle both employees and contractors

  • How to handle restaurant tips

  • How to add custom deduction field and withhold it from each paycheck automatically

  • How to handle local taxes

  • How to handle State Disability Insurance (SDI)

  • How to print paycheck in different formats: check-on-top, check-in-middle, check-at-bottom

  • How to print paycheck on blank stock

  • How to print paycheck on pre-printed checks

  • How to print paycheck with company logo

  • How to adjust check printing position

  • Sample Paychecks

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