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Methods of Witholding - Part Year Employment

Part Year Employment

Upon written request from an employee working only part of the year, an employer may withhold federal tax according to a complicated averaging method that reduces the amount to be withheld. To be eligible for this optional method, an employee must reasonably anticipate that he will be employed for an aggregate of no more than 245 calendar days in all terms of continuous employment during the calendar year and must also use a calendar year accounting method.

 

 

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