What Is the IRS Publication 15?
Let me explain to you what IRS Publication 15 is. It's the Employer's Tax Guide, a document put out by the Internal Revenue Service that spells out your responsibilities as an employer for filing and reporting tax information. This covers withholding, depositing, reporting, paying, and correcting taxes for your employees, though it doesn't touch on taxes for the corporation itself. You might also hear it called Circular E.
Key Takeaways
Here's what you need to know right away. IRS Publication 15 is that Employer's Tax Guide from the IRS detailing your duties for filing and reporting tax info. It handles the withholding, depositing, reporting, paying, and correcting of taxes for employees, but again, not for the company. The guide also lays out federal income tax amounts for payroll withholdings, including those for Medicare and Social Security.
Understanding IRS Publication 15
You use IRS Publication 15 to figure out federal income tax, but remember, it doesn't cover state or local taxes. The guide gives you the details on federal income tax for payroll withholdings, plus Medicare and Social Security amounts. As an employer, you should check your state's tax rules to make sure you're withholding the right state income tax from your employees' paychecks. There's extra info in IRS Publication 15-A if you need it.
In the past, one key part of the Employer's Tax Guide was the Percentage Method Tables and Wage Bracket Method Tables for Income Tax Withholding. But starting with the 2020 version, those tables are gone from Publication 15. Now, you'll find those tables and instructions on how to calculate employee withholding in Publication 15-T, Federal Income Tax Withholding Methods. The IRS has an online tool called the Income Tax Withholding Assistant for Employers to help you with this.
Those wage bracket tables tell you exactly what percentage of your employees' payroll to withhold for taxes each pay period to stay compliant with federal rules. To determine the withholding amount, your employee has to file a W-4 Form, which they can update if things change, like adding a new family member. If an employee doesn't file a W-4, the Employer's Tax Guide tells you what amount to withhold instead.
How to Use IRS Publication 15
The simplest way for you to get IRS Publication 15 is online via the IRS website. The Employer's Tax Guide includes any updates and new laws that affect employers.
Sections in the Employer's Tax Guide
- Information about Employer Identification Numbers, or EINs
- Legal definitions of employees
- Hiring and paying family employees
- Employee’s Social Security Numbers or SSNs
- Wages and other compensation details
- How to report and pay tips
- Any supplemental wages
- Payroll Periods
- Withholding from employee’s wages
- Required notice to employees about the earned income credit or EIC
- Depositing taxes
- Filing Form 941 or Form 944
- Reporting Adjustments to Form 941 or Form 944
- Federal Unemployment, or FUTA, Tax
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