What is Publication 15-T?
Publication 15-T is an official IRS guide called Federal Income Tax Withholding Methods. It explains how employers should calculate the correct amount of federal income tax to withhold from employee wages.
This publication works alongside Publication 15 (Employer’s Tax Guide) and provides the withholding tables, worksheets, and formulas employers use when processing payroll.
Publication 15-T Meaning
The meaning of Publication 15-T is simple: it helps employers comply with IRS rules by showing them how to deduct the right amount of federal tax from employee paychecks. Without it, businesses risk miscalculating taxes—leading to IRS penalties or unhappy employees.
Why Employers Use IRS Publication 15-T
- Ensures payroll tax withholding is accurate and legal.
- Prevents under-withholding (big tax bill for employee) or over-withholding (employees lose cash flow).
Updates annually with the latest tax brackets. - Guides payroll teams in handling new vs. old W-4 forms, bonuses, and nonresident alien employees.
Key Sections of Publication 15-T
| Section | What It Covers | Why It Matters |
| Wage Bracket Method | Uses simple tables to match wages with withholding amounts. | Easier for manual payroll with low to mid-level wages. |
| Percentage Method | Calculates withholding using percentages instead of set tables. | Flexible for higher wages and payroll software. |
| Worksheets | Step-by-step instructions to adjust wages before using tables. | Ensures deductions like 401k contributions are handled correctly. |
| Form W-4 Adjustments | Explains rules for both old (pre-2020) and new W-4 forms. | Critical for accurate tax withholding. |
| Computational Bridge | Converts older W-4 data into new format. | Reduces payroll errors. |
| Supplemental Wages | Guidance on bonuses, overtime, and irregular pay. | Helps avoid mistakes with extra pay. |
| Nonresident Alien Rules | Special rules for foreign employees. | Prevents under- or over-taxing nonresidents. |
How to Use Publication 15-T in Payroll
- Collect the employee’s Form W-4.
- Choose Wage Bracket or Percentage Method.
- Adjust wages for pre-tax deductions like retirement plans.
- Apply the IRS withholding tables from Publication 15-T.
- Withhold any additional tax requested by the employee.
- Double-check compliance with current tax year updates.
Publication 15-T Example (Simple Scenario)
Let’s say an employee earns $1,200 biweekly and files as Single with no dependents.
- Using the Percentage Method, Publication 15-T shows the correct federal withholding amount.
- If the employee contributes to a 401k plan, wages are adjusted before tax calculation.
- The final withheld tax ensures the employee won’t owe the IRS extra at year-end.
Related Payroll & Tax Terms
- Multi-State Payroll – For businesses with employees in multiple states.
- Regular Hours Definition – Important for wage calculations.
- 1099-NEC Form – Used for independent contractors, not subject to Publication 15-T withholding.
- 1099-MISC Form – For other types of income reporting.
FAQs About Publication 15-T
Q1. What is Publication 15-T used for?
It’s used to calculate federal income tax withholding from employee wages.
Q2. What is the difference between Publication 15 and Publication 15-T?
Publication 15 is the Employer’s Tax Guide. Publication 15-T provides the actual withholding methods and tables.
Q3. How often is Publication 15-T updated?
Annually, to match IRS tax law changes.
Q4. Do employees need to read Publication 15-T?
Not usually. Employers and payroll providers use it; employees just need to complete their W-4.
Q5. Does Publication 15-T apply to bonuses?
Yes, the supplemental wages section explains how to handle bonuses, overtime, and irregular pay.
Q6. Can Publication 15-T be used for contractors?
No. Independent contractors get a 1099-NEC instead of having tax withheld.
Q7. What happens if an employer doesn’t use Publication 15-T correctly?
They could under- or over-withhold taxes, leading to penalties or payroll errors.
Q8. What are the two main withholding methods in Publication 15-T?
The Wage Bracket Method and the Percentage Method.
Q9. How does Form W-4 affect Publication 15-T calculations?
The employee’s W-4 determines how the tables and worksheets in Publication 15-T are applied.
Q10. Where can I find the latest IRS Publication 15-T?
On the IRS website (irs.gov), updated yearly.
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