Example 4-3 To compute the tax using the percentage method for Manual Payroll Systems with Forms W-4 from 2020 or Later using Standard Withholding Rate Schedules, follow the steps illustrated below. Step 1 Determine the amount of gross wages earned, filing status, adjustments on Form W-4, and frequency of pay. Note: If the wage ends in a fractional dollar amount, the wage may be rounded to the nearest dollar. However, in this text, exact wages are used. Step 2 Determine the withholding tax by referring to the appropriate Percentage Method Withholding Table (see Figure 4.6 below). -> Wilson Goodman, single (S), has no adjustments on his Form W-4 and earns $915.60 semimonthly. -> Compute tax from Tax Table A, Semimonthly, Standard Withholding Rate Schedule, page T-3. ($915.60 $540.00 $375.60 x 10% $37.56 + $0) = $37.56