Chart Illustration. Summary: This list contains the information provided in a table that describes the limitations of taxes withheld if the employer uses methods besides the percentage method used in Circular 15 for determining the amount of taxes to withhold.

If the tax required to be withheld under the annual percentage rate is less than $10; the annual tax withheld under your method may not differ by more than $9.99.

If the tax required to be withheld under the annual percentage rate is $10 or more but under $100; the annual tax withheld under your method may not differ by more than $10 plus 10% of the excess over $10.

If the tax required to be withheld under the annual percentage rate is $100 or more but under $1,000; the annual tax withheld under your method may not differ by more than $19 plus 3% of the excess over $100.

If the tax required to be withheld under the annual percentage rate is $1,000 or more; the annual tax withheld under your method may not differ by more than $46 plus 1% of the excess over $1,000.