2008 FEDERAL TAX WITHOLDING FORMULAS
ALLOWANCE AMOUNT = $3,500.00 Multiply monthly/biweekly gross by number of pay periods in the year. Subtract the withholding allowances from the annualized salary. Do not deduct the standard deduction from gross salary since it is included in the table below. Use the following table for calculating Federal tax withholding for 2008. If the amount of wages (after subtracting allowances)is: Over Not over
S I N G L E 0 2,650 10,300 33,960 79,725 166,500 359,650 2,650 10,300 33,960 79,725 166,500 359,650 9,999,999
The amount of income tax shall be: Of excess over
0 2,650 10,300 33,960 79,725 166,500 359,650 0% 10% 765.00 plus 15% 4,314.00 plus 25% 15,755.25 plus 28% 40,052.25 plus 33% 103,791.75 plus 35%
M A R R I E D
If the amount of wages (after subtracting allowances)is: Over Not over 0 8,000 8,000 23,550 23,550 72,150 72,150 137,850 137,850 207,700 207,700 365,100 365,100 9,999,999
The amount of income tax shall be: Of excess over 0 0% 8,000 10% 23,550 1,555.00 plus 15% 72,150 8,845.00 plus 25% 137,850 25,270.00 plus 28% 207,700 44,828.00 plus 33% 365,100 96,770.00 plus 35%
Supplemental Federal Tax rate is 25%.
2008 NC TAX WITHHOLDING FORMULAS
ALLOWANCE AMOUNT: 2,500 Single - If annual income less than $60,000 Married - If annual income less than $50,000 Head - If annual income less than $80,000
or
$2,000 If annual income greater than $59,999 If annual income greater than $49,999 If annual income greater than $79,999
Multiply monthly/biweekly gross by number of pay periods in the year. Subtract the withholding allowances per the withholding information above from the annual salary. Use the following table for calculating the State withholding tax for 2008. If the amount of wages (after subtracting allowances)is: Over Not over
S I N G $ $ $ $ 3,000.00 15,750.00 63,000.00 $ $ $ $ 3,000.00 15,750.00 63,000.00 9,999,999.00
The amount of income tax shall be: Of excess over
$ $ $ $ 3,000.00 15,750.00 63,000.00 0% 6% $ 765.00 plus 7% $4,072.50 plus 7.75%
Over
M A R R Q U A L $ $ $ $ 3,000.00 13,625.00 53,000.00
Not over
$ $ $ 3,000.00 13,625.00 53,000.00 9,999,999.00
Of excess over
$ $ $ 0 3,000.00 13,625.00 53,000.00 0% 6% $637.50 plus 7% $3,393.75 plus 7.75%
Over
H E A D $ $ $ $ 4,400.00 21,400.00 84,400.00
Not over
$ $ $ 4,400.00 21,400.00 84,400.00 9,999,999.00
Of excess over
$ $ $ 0 4,400.00 21,400.00 84,400.00 0% 6% $1,020.00 plus 7% $5,430.00 plus 7.75%
Supplemental NC StateTax rate is 6%.