# The W-4 withholding worksheet

> Worksheet 1A for both of Northwind's employees: $917 and $133 a month, line by line.

Source: https://lopifi.com/learn/gross-to-net-pay/w-4-withholding-worksheet
Part of: Lopifi — US GAAP books on autopilot, checked by a CPA (https://lopifi.com)

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**How is federal income tax withholding calculated from a W-4?** Worksheet 1A for both of Northwind's employees: $917 and $133 a month, line by line.

Publication 15-T's Worksheet 1A is what payroll software runs for every employee, every payday. It reads the W-4's five steps in a fixed order, and every line can be checked by hand.

| Line | Amount |
| --- | --- |
| 1a  Wages this pay period | 5,775 |
| 1b  Pay periods a year (monthly) | 12 |
| 1c  Annual wages | 69,300 |
| 1g  Standard adjustment (Step 2 checked: none) | 0 |
| 1i  Adjusted annual wage amount | 69,300 |
| 2b–2d  Table row: at least 60,900, at 24% over it |  |
| 2g  Tentative annual withholding | 10,999 |
| 2h  ÷ 12, rounded to the dollar: withhold this month | 917 |

Priya Shah: single, Step 2 checked. Worksheet 1A, 2026.

| Line | Amount |
| --- | --- |
| 1a  Wages this pay period | 2,625 |
| 1b  Pay periods a year (monthly) | 12 |
| 1c  Annual wages | 31,500 |
| 1g  Standard adjustment | 8,600 |
| 1i  Adjusted annual wage amount | 22,900 |
| 2b–2d  Table row: at least 19,900, at 12% over it |  |
| 2g  Tentative annual withholding | 1,600 |
| 2h  ÷ 12, rounded to the dollar: withhold this month | 133 |

Marcus Lee: single, nothing else on the W-4. Worksheet 1A, 2026.

> “You may also round the tax for the pay period to the nearest dollar. If rounding is used, it must be used consistently.”

— [IRS Pub. 15-T (2026), Introduction — Rounding](https://www.irs.gov/pub/irs-pdf/p15t.pdf) (PDF), Federal income tax withholding methods — Worksheet 1A and the 2026 percentage method tables

| W-4 step | What the employee enters | What the worksheet does with it |
| --- | --- | --- |
| Step 1(c) | Filing status | Picks the table: married filing jointly, head of household, or single |
| Step 2 | Two jobs, or a working spouse | Checked: the narrower-bracket table, and no standard adjustment (line 1g) |
| Step 3 | Credits for dependents, a year | Divided by the pay periods and taken off each period's tax |
| Step 4(a) | Other income, a year | Added to annual wages before the table |
| Step 4(b) | Deductions beyond the standard, a year | Taken off annual wages before the table |
| Step 4(c) | Extra withholding, a period | Added after everything else |

What each W-4 step does to the worksheet.

> **Why Priya's withholding is higher.** Step 2 assumes the other job pays about as much, so each employer withholds as if its wages were half the household's. Without the checkbox, Priya would get the $8,600 adjustment and the wider brackets from both jobs, and owe the difference in April. The checkbox is the employee's choice; the employer applies what the form says.

**Wrong:** Change Priya's withholding because her take-home looks low.

**Right:** Apply the W-4 exactly as signed; if there's none, withhold as single with no adjustments.

The employer applies the W-4 as given. Advising an employee how to fill it in isn't the employer's job, and the IRS's estimator exists for that.

## Where this page's rules come from

- [IRS Pub. 15-T (2026), Introduction — Rounding](https://www.irs.gov/pub/irs-pdf/p15t.pdf) (PDF) — Federal income tax withholding methods — Worksheet 1A and the 2026 percentage method tables (irs)
- [Form W-4 (2026)](https://www.irs.gov/pub/irs-pdf/fw4.pdf) (PDF) — Form W-4, Employee's Withholding Certificate (form)

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