Federal Publication 15-A (2023), Employer Supplemental Tax Guide

Publication 15-A (2023), the Employer's Supplemental Tax Guide, is an IRS document offering detailed information for employers on tax-related matters, including withholding procedures, tax rates, and electronic filing requirements for the tax year 2023.

What's New: Form W-4P and Form W-4R (2022-2023)

  • Form W-4P redesigned for 2022, now exclusively for periodic pension or annuity payments.
  • Form W-4R introduced for withholding elections for nonperiodic payments and eligible rollover distributions.
  • IRS postponed the requirement to use the new forms until January 1, 2023.
  • Section 8 provides details on withholding on retirement payments and annuities.

Social Security and Medicare Tax for 2023

  • Social Security tax rate: 6.2% each for employer and employee; total 12.4%.
  • Qualified sick leave and family leave wages in 2023 subject to 6.2% tax; wage base limit is $160,200.
  • Medicare tax rate: 1.45% each for employee and employer (unchanged), no wage base limit.
  • Social Security and Medicare taxes apply to household workers paid $2,600 or more and election workers paid $2,200 or more.

For more information on Publication 15-A (2023), check out the attached PDF below. Also, for the current year's Publication 15-A, click here.