IRS releases latest draft of Pub. 15-T: Details for Payroll on withholding New tables and instructions for calculating workers’ taxes The IRS’ second draft of Publication 15-T, Federal Income Tax Withholding Methods, gives you an inside look at what you’ll need to do to calculate employees’ tax withholding next year using each version of Form W-4. In the new draft, there are updated instructions and tables Payroll can use for calculations and deductions, depending on whether payroll is processed manually or through an automated system, and which method you’ll choose for withholding. Rundown of updates In all, the latest version of Pub. 15-T has five different tables to choose from for withholding: Percentage Method Tables for Automated Payroll Systems Wage Bracket Method Tables for Manual Payroll Systems with Forms W-4 Form 2020 or Later Wage Bracket Method Tables for Manual Payroll Systems With Forms W-4 Form Before 2020 Percentage Method Tables for Manual Payroll Systems with forms W-4 Form 2020 or Later, and Percentage Method Tables for Manual Payroll Systems with Forms W-4 form Before 2020. There’s only one set of worksheets and tables for those who process payroll with automated systems because the tables are designed to work with both the 2020 Form W-4 and older versions of the form. Right now, each table is based on current tax figures so you can see what the procedure to calculate deductions will look like in 2020 and test it with the tables you’ll use. Along with updated tables, the latest draft of Pub. 1-T also has instructions on how to correctly withhold taxes from nonresident alien employees working in the United States using updated guidelines. What’s next The IRS plans to release the final version of Pub. 15-T using 202 tax parameters in November 2019. Just as with the second draft of the new W-4, the agency said it won’t make any significant changes between the second draft and the final version. More info: irs.gov/pub/irs-dft/p15t—dft.pdf