Employment-IRS Releases 2011 Percentage Method Tables for Income Tax

In Notice 1036 (Rev. December 2010), the Internal Revenue Service (the “IRS”) issued the 2011 Percentage Method Tables for income tax withholding. These tables reflect the recently passed Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. Employers should begin to use these tables as soon as possible, but not later than January 31, 2011.

Note that Making Work Pay credit expires on December 31, 2010. As a result, the 2011 Percentage Method Tables do not reflect this credit, and there is no longer
an optional additional withholding adjustments for pension recipients.