The 2 methods of calculating the Federal Income Tac withholding is the wage bracket and percentage method and based on the number of employees indicated which method should be used. I feel that the percentage method is the most common method used by employers. Hourly Rob A. Mangino Single 1 dependent 40*8.50=340(total earnings) 23=(FIT) 340*0.0307=10.44(SIT) 340*0.0135=4.59(CIT) 340(total earnings)-20(simple deductions) = 320 .