UFED_TAX_METHOD (U.S. Federal Tax Method) is an optional fixed lexicon used to indicate the override for federal withholding tax. The tax may be calculated by the normal (tables) method, the percentage method, a flat amount, a combination of these three methods, or by another method.\\

__US Tax Withholding Options__\\  
Because our users have an automated payroll system, the IRS requires they use the Percentage Method tables per publication 15-T.\\  \\The only four federal methods supported are: 
*Annualized Method
*Annualized + Amount (recommended)
*Ann/0 Tax/Upd Wage
*By Supplemental Meth\\
With these options, our tax engine will follow the appropriate rate tables.  Our tax engine takes into consideration all the adjustments accounted for on the newest W4 form:\\* Step 2 selection\\* Step 3 Dependent amounts\\* Step 4 Other income, Deductions, Extra Withholding\\ \\****The Extra withholding will only work if the “Annualized + Amount” is selected.  Thus this is the recommended option.
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__Exempt__
\\When an employee claims exempt on the W4, the proper setup should be “Ann/0 Tax/Upd Wage” and should be setup on the employees record as an override.
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__Supplemental Method__
\\A special pay category should be setup with this method to handle percentage payments for supplemental payments.
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All other methods available should be reserved for special allowances such as Distributions of Indian Gaming Profits.__ \\ 

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