IRS Can Provide Withholding Formula

Q I work for a small sales organization. I am paid straight commission and have all appropriate taxes taken out of my check each month.

I get paid when the company is paid. Some months, as little as 6% of my gross pay is withheld and in other months, it’s as much as 28%.

Shouldn’t the percentage remain the same each month?

--A.T., Laguna Hills

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A Your employer is using a percentage method of withholding. As each commission check varies, so will the amount of federal income tax withheld. The larger your commission, the more federal income tax is withheld.

Publication 15, “Employer’s Tax Guide,” explains the withholding process in detail. It can be ordered by calling (800) 829-3676, or downloaded from the IRS Web site at www.irs.ustreas.gov.

--Judith Golden

Public affairs director

Internal Revenue Service