Q:

What are IRS tax tables for Circular E?

A:

Quick Answer

Employers use the tax tables in IRS Circular E to calculate an employee's federal tax withholding per paycheck, according to the Internal Revenue Service. Tax tables are designed to accommodate employees claiming up to 10 exemptions and differ based on pay period, whether weekly, bi-weekly, bi-monthly or monthly.

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Full Answer

The tax tables in Circular E provide the specific amount of each allowance applicable to an employee based on his pay period, as stated by the Internal Revenue Service. This amount is then multiplied by the number of allowances an employee stated on his W-4 and is subtracted from gross pay to find the total amount that should be withheld for federal tax purposes.

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