Employers may use the wage-bracket method to determine the amount of tax to be withheld from an employee's pay.

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The wage-bracket method is a commonly used method for calculating federal income tax withholding from an employee's paycheck. The IRS provides employers with tables that break down employees' pay into wage brackets and corresponding tax rates. The employer then uses these tables to calculate the appropriate amount of tax to withhold based on the employee's pay and filing status.

Employers May Use the Wage-Bracket Method to Determine the Amount