IRS Alternative Withholding Methods: Keys to Avoid Tax Penalties

Price: $199 + applicable taxes

Calculating the correct withholding from employee pay is even more challenging when compensation varies pay period to pay period, for part-year employment or when bonuses are issued. Employers may over or under-withhold - resulting in costly penalties and even personal liability. These mistakes mean a flood of revised W-4s, additional work for payroll, and also more room for error.

To better approximate employees' tax withholding in these instances, the IRS developed alternatives to the traditional withholding methods. These methods provide a withholding amount that is closer to the "correct" amount of withholding required to meet the employee's tax obligation.

Join us to learn how to apply these IRS alternate methods for more accurate withholding, plus tips for evaluating your own employer-developed method. In our 60-minute program, you'll discover:
  • Keys to compute correct annual withholding to avoid under withheld tax penalties
  • How to use IRS alternative wage bracket and percentage method tables
  • When and which alternative method may be used by the employer
  • Tips to smooth the withholding process when compensation varies across pay periods
  • The IRS four alternative methods – when and how to apply them

Program Highlights

The IRS Four Alternative Withholding Methods: When to Best Apply Each Option

  • Annualized wage method – what it does, when and how to use it
  • Average wage method – when this option may be best
  • Cumulative wage method – why payroll may choose this method
  • Part-year employment method – when and to whom it applies
  • Other methods and maximum permissible deviations rules

Alternative Withholding Method Guidelines for More Accurate Payroll

  • Computing the correct or target annual withholding to avoid tax penalties
  • How to use IRS alternative wage bracket and percentage method tables
  • Which alternative methods may only be used if the employee requests it
  • Soften the impact of bonus payments on withholding without changing the W-4

Withholding Practice to Ensure Compliance

  • The requirement to withhold and Form W-4 claims
  • Methods used to compute withholding on supplemental pay
  • Test employer designed withholding methods for IRS compliance
  • Using the daily or miscellaneous withholding tables

Live Question & Answer Session – get your specific questions answered!

About the Speaker

Patrick A. Haggerty is a tax practitioner, author, and educator. His work experience includes non-profit organization management, banking, manufacturing accounting, and tax practice.

  • He began teaching accounting at the college level in 1988.
  • He is licensed as an Enrolled Agent by the U. S. Treasury to represent tax payers at all administrative levels of the IRS and is a Certified Management Accountant.
  • He has written numerous articles and a monthly question and answer column for payroll publications. In addition, he regularly develops and presents webinars and presentations on a variety of topics including payroll tax issues, FLSA compliance, and information return reporting.

Program Benefits

Irregular pay amounts, work schedules and bonus make it hard to accurately calculate how much tax to withhold from employees, but the IRS alternative withholding methods can help. Join us to learn when these methods apply, and understand when best to use each option.

HRCI Credits

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This program has been approved for 1 (HR (General)) recertification credit hour toward aPHRTM, aPHRiTM, PHR®, PHRca®, SPHR®, GPHR®, PHRiTM and SPHRiTM recertification through the HR Certification Institute. Learn more at hrci.org

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IRS Alternative Withholding Methods: Keys to Avoid Tax Penalties

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For the live training(s) you've selected:
You will receive access to the live event(s) which includes a copy of the speaker's presentation, real-time training with our expert instructor, and an interactive question & answer period. Two to three business days after each live training concludes, an email is sent to registrants which contains a link for unlimited access to the on-demand recording you can revisit & review.
For the on-demand training(s) you've selected:
You'll receive a link to access the recording(s) in your order confirmation email. On-demand recordings also include a copy of the speaker's presentation and the ability to submit your questions to the expert, for up to 7 days after viewing.
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