Actor and Crew Payroll Tax Withholding

Effective January 1, 2020

In late 2019, the IRS released a new version of Form W-4 for 2020 which is intended to more accurately reflect an employee's federal withholding liability. The redesigned Form W-4 no longer uses the concept of withholding allowances.

Employees now have the option to account for multiple jobs or a working spouse, claim dependents, and make other adjustments by completing Steps 2 through 4 on the new Form W-4 and using specific dollar amounts to adjust their federal withholding. The IRS encourages the use of its Tax Withholding Estimator tool when completing the new Form W-4. This tool can be found on the IRS web site (www.irs.gov) along with a list of helpful W-4 FAQs.

Please consult your personal tax advisor for specific information and assistance regarding your individual situation.

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Federal income tax will be withheld based on a completed Form W-4. ART also offers the following additional withholding mechanisms that are designed to assist actors and crew, working on a part-time temporary basis for multiple employers, to achieve the appropriate tax withholding based on their circumstances. Contact our Front Office to discuss the options provided below (603) 367-9955.

Weekly (W): This is the standard method used to calculate federal income tax withholding. For example, if you are paid $1,000 in one week, the normal (or weekly) withholding tables will assume that you are going to be paid 52 times that amount in a year and withhold taxes based on an annual income of $52,000.

Yearly (Y): This can be a good method for people who are paid erratically. Withholding is done on an annualized basis by analyzing your year-to-date wages against the current week-ending date and then recalculating the amount of tax to withhold. For example, suppose you are paid $1,000 in the 13th week of the year. This method assumes that since you were paid $1,000 in 13 weeks, you will be paid $4,000 in 52 weeks and so withholds accordingly. If, in fact, you are only paid another $1,000 in the 39th week, that $2,000 is annualized over the 39 weeks ($2,667).

Minimum Withholding Percentage (P): Under this method, withholding is based on a minimum percentage that you provide. The amount of tax to withhold is calculated based upon your chosen percentage and ART will withhold that amount at a minimum. More will be withheld if deemed due based on your gross wages and filing status. For example, if you want ART to withhold at least 15% from each paycheck but more if deemed due, this method should be used.

Flat Withholding Percentage (F): Under this method, withholding is based on a fixed percentage that you provide. Selections are limited to the current IRS tax bracket percentages of 10%, 12%, 22%, 24%, 32%, 35%, and 37%. For example, if you are in a higher tax bracket, paid by multiple sources, and would prefer to have your withholding calculated using a tax bracket percentage that is different than what the normal withholding tax tables would use, this function will work well.

Extra Withholding Percentage (X): Under this method, normal withholding is calculated. An extra percentage that you provide is then withheld in addition to what is deemed due.