IRS makes withholding tables available for 2024

The 2024 tables for federal income tax withholding are now available, IRS said during a recent Payroll Industry Call.

The Service posted the draft version of Publication 15-T, Federal Income Tax Withholding Methods, on November 20, 2023, and included the 2024 tables as an Excel attachment.

The Excel format is only temporary – the tables will be integrated into the final version of Publication 15-T. Nonetheless, the tables can be relied on now, IRS explained during the call.

Making the tables available in an early, alternative format gives the industry as much time as possible for programming and updating payroll systems, IRS shared.

(Technical note: If you don’t see the Excel attachment in the draft version of Publication 15-T, you may need to try a different web browser.)

As expected, you’ll find seven withholding methods in Publication 15-T.

They are:

1. Percentage Method Tables for Automated Payroll Systems and Withholding on Periodic Payments of Pensions and Annuities
2. Wage Bracket Method Tables for Manual Payroll Systems With Forms W-4 From 2020 or Later
3. Wage Bracket Method Tables for Manual Payroll Systems With Forms W-4 From 2019 or Earlier
4. Percentage Method Tables for Manual Payroll Systems With Forms W-4 From 2020 or Later
5. Percentage Method Tables for Manual Payroll Systems With Forms W-4 From 2019 or Earlier
6. Alternative Methods for Figuring Withholding, and
7. Tables for Withholding on Distributions of Indian Gaming Profits to Tribal Members.

Withholding based on Form W-4

IRS also released a draft version of the 2024 Form W-4. That was posted on September 29, 2023.

The final version of the W-4, which is expected soon, shouldn’t differ significantly from the draft version, IRS noted during the call.

Reminder: If you’re asking employees to fill out Form W-4 electronically, IRS has specific requirements that must be met for electronic substitute versions of the form.

UPDATE: IRS released final versions of Publication 15-T and Form W-4 during mid-December.