The wage bracket method can be used if an employee claims up to 10 allowances.
The wage bracket method is considered the most straightforward approach, as it tells you the exact amount to withhold based on the employee's taxable wages, number of allowances, marital status, and payroll period.
The wage bracket method is used when an employee claims up to 10 allowances. Thus, this method stops at 10 allowances and limits the number of wages that can be used to calculate withholding which brings us to the percentage method.
Hence, for employees, withholding is the amount of federal income tax which is withheld from your paycheck.
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