Cumulative Withholding
Upon written request from an employee, an employer may determine the amount of federal income tax to be withheld on a cumulative basis by:
(1) adding the current wage payment to wages already paid during the calendar year,
(2) dividing those total wages by the number of payroll periods to which they relate,
(3) determining the federal tax to be withheld on that average payment,
(4) determining the tax that would have been withheld on the total of those average payments (including the current payment),
(5) subtracting the amount already actually withheld on payments during the year, and
(6) withholding only the difference from the current wage payment.
