Early Release Copies Of The 2010 Percentage Method Income Tax Withholding And Advance Earned Income Credit Payment Tables Worksheet (Page 2 of 8) in pdf

Early Release Copies Of The 2010 Percentage Method Income Tax Withholding And Advance Earned Income Credit Payment Tables Worksheet Page 2

Nonresident Aliens for Wages Paid in 2010 on the next

The withholding amounts shown in this table may be

to last page of this notice.

added to the withholding amounts figured using the

percentage method or any other allowable method.

Step 4. Add the amounts you figured in Steps 2 and

Pension payors are not required to use this procedure

3. The total is the amount of income tax to withhold from

and may instead use only the income tax withholding

the nonresident alien employee’s wages for the payroll

tables that apply to wages.

period.

Social Security Tax Wage Base

Additional Withholding for Pensions for

For 2010, the wage base for withholding social security

2010

(old age, survivors, and disability insurance) is $106,800,

There is an optional procedure for those making pension

unchanged from 2009. There is no wage base limit for

payments to offset withholding reductions for the Making

Medicare (hospital insurance). For social security, the

Work Pay credit. Payors of pensions can use the table

tax rate is 6.2% each for employers and employees. For

on the last page of this notice to figure additional income

Medicare, the rate is 1.45% each for employers and

tax withholding on pension payments to offset the

employees.

withholding reduction included in the withholding tables

for the Making Work Pay credit. Pension payments are

not earned income and do not qualify for the Making

Work Pay credit.

Catalog No. 21974B

Early Release Copies Of The 2010 Percentage Method Income Tax Withholding And Advance Earned Income Credit Payment Tables Worksheet Page 2