For more information about withholding on supplemental wages, see section 7 of Pub. You may also use the Income Tax Withholding Assistant for Employers at IRS.gov/ITWA to help you figure federal income tax withholding however, this transitional tool will no longer be available after 2022.Īlthough this publication may be used in certain situations to figure federal income tax withholding on supplemental wages, the methods of withholding described in this publication can’t be used if the 37% mandatory flat rate withholding applies or if the 22% optional flat rate withholding is used to figure federal income tax withholding. It describes how to figure withholding using the Wage Bracket Method or Percentage Method, describes the alternative methods for figuring withholding, and provides the Tables for Withholding on Distributions of Indian Gaming Profits to Tribal Members. Also, see How To Treat 2021 and Earlier Forms W-4P as if They Were 2022 or Later Forms W-4P, later, for an optional computational bridge.For more information about the new 2022 Form W-4R, see section 8 of Pub. For more information about the redesigned Form W-4P, see Form W-4P, later. If a payer is figuring withholding on periodic payments based on a 2021 or earlier Form W-4P, the payer may also figure withholding using the methods described in section 3 and section 5. Worksheet 1B is used with the STANDARD Withholding Rate Schedules in the 2022 Percentage Method Tables for Automated Payroll Systems and Withholding on Periodic Payments of Pensions and Annuities that are included in section 1. Section 1 of this publication includes Worksheet 1B for payers to figure withholding on periodic payments of pensions and annuities based on a 2022 Form W-4P or a 2021 and earlier Form W-4P. Payers should update their system programming for these forms and are encouraged to begin using them in 2022 as soon as programming is in place but may otherwise continue to use the 2021 Form W-4P in 2022. Although the final redesigned Form W-4P and new Form W-4R are available for use in 2022, the IRS is postponing the requirement to begin using the forms until January 1, 2023. Starting in 2022, additional withholding on nonperiodic payments and eligible rollover distributions is requested on new Form W-4R, Withholding Certificate for Nonperiodic Payments and Eligible Rollover Distributions. Previously, Form W-4P was also used to request additional withholding on nonperiodic payments and eligible rollover distributions. The new Form W-4P is now used only to request withholding on periodic pension or annuity payments. Form W-4P, Withholding Certificate for Periodic Pension or Annuity Payments (previously titled Withholding Certificate for Pension or Annuity Payments), has been redesigned for 2022.
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