The IRS announced Notice 1036 which includes information on the percentage method tables for tax withholding, withholding adjustment for Nonresident aliens, Withholding on Supplemental wages, and much more.

Withholding allowance amounts for payroll periods have changed for 2019 as follows:

Payroll PeriodOne Withholding Allowance
Weekly$80.80
Bi-weekly$161.50
Semimonthly$175.00
Monthly$350.00
Quarterly$1,050.00
Semianually$2,100.00
Annually$4,200.00
Daily or Miscellaneous (each day of the payroll period)$16.20


New 2019 W-4 Form

The IRS has posted a new W-4 Form which can be found here.

Withholding adjustment for nonresident aliens

For 2019, the amounts of wages paid to resident aliens performing services within the United States have been updated.

Withholding Rates for Supplemental Wages in 2019

There are two flat rates used when withholding supplemental wages. The optional flat rate is 22% for supplemental wages up to and including $1 million during the year. The mandatory flat rate is 37% for supplemental wages over $1 million during the year.

 

Contact your Accountant or tax professional if you have any questions regarding the IRS notice.

CPS clients should encourage your employees to review and if necessary submit new W-4 forms for 2019.