19-P-013 2019 Percentage Method Tables for Federal Tax Withholding (December 18, 2018)
Informational Circular No.: 19-P-013
Supersedes Informational Circular No: 18-P-018
Effective Date: January 1, 2019
Contact Name: Nancy Ruoff
Ph: (785) 296-2853
Approval: Nancy Ruoff (Original Signature on File)
Summary: New Federal Withholding Tax Tables Effective for Paychecks Issued On or After January 1, 2019
The Internal Revenue Service (IRS) has issued new tables for the percentage method of withholding for 2019 per IRS Notice 1036. Therefore, the attached tables will be used in SHARP for computing federal tax withholding for wages paid on or after January 1, 2019. In order to use the attached tables, income must be annualized. To annualize income, multiply federal taxable income for the current bi-weekly pay period by twenty-six pay periods. In addition, the value of one withholding allowance has increased to $4,200 for 2019.
Regents should also note that the annual amount to add to Nonresident Alien employee’s wages for calculating income tax withholding for 2019 has increased to $8,000. In addition, Regents should check IRS Publication 1494 for any changed amounts when computing tax levies for garnishments. Publication 1494 for 2018 is currently available on the IRS website at https://www.irs.gov/pub/irs-pdf/p1494.pdf. Regents should be aware that the withholding on supplemental wages rate remained at 22% for 2019.
IRS regulations continue to require employees claiming exempt status from federal tax withholding (for income earned in the United States) to file a new W-4 form annually. Employees are eligible for the exempt status if the following criteria are met: 1) the employee had no income tax liability in the previous year, and 2) the employee anticipates no income tax liability in the upcoming year.
SHARP employees are encouraged to use the Employee Self Service functionality to file their 2019 W-4s. The 2019 Form W-4 has been published by the IRS and can be found on the Office of the Chief Financial Officer website at https://admin.ks.gov/resources/document-center.
IRS regulations require non-resident alien employees who claim an exempt status from federal withholding tax up to their treaty limit (for income earned in the United States) to file a new 8233 annually. Employees who claimed a non-resident alien exempt status in calendar year
2018 must file a new 8233 form for calendar year 2019 if they wish to continue their non-resident alien status. As a reminder, Regents Institutions are responsible for the accuracy of the eligibility of their non-resident alien employees and for monitoring maximum presence.
The Office of the Chief Financial Officer, Payroll Services, will make all of the necessary changes in the computation of withholding taxes for SHARP agencies. Regents’ institutions are responsible for implementing the new withholding tax rates in their respective payroll systems.