what method is used to calculate federal taxes?
<answer> Obtain the employee’s gross wage for the payroll period, Determine the allowance amount from the “Withholding Allowance Table” below according to the employee’s number of withholding allowances and frequency of payment. <context> Federal Percentage Method of Withholding. For Payroll Paid January 23 – December 31, 2015. Source: IRS Notice 1036 (January 2015) Procedures used to calculate federal taxes withheld*: 1. Obtain the employee’s gross wage for the payroll period. 2. Determine the allowance amount from the “Withholding Allowance Table” below according to. the employee’s number of withholding allowances and frequency of payment.