Computing Federal Income Tax Withholding FITW The following charts show

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Computing Federal Income Tax Withholding FITW The following charts show Powered By Docstoc
					Computing Federal Income Tax Withholding (FITW)



The following charts show how federal income tax withholding (FITW) is computed
The charts reflect year 1 January 2009 federal withholding rates.



   Step       Procedure                                                               Result
    1         Enter Monthly Taxable Income from Block 38, LES                         A=
    2         Multiply Allowances From Block 41 of LES by $304.17                     B = $304.17x =
    3         Subtract B from A to get monthly Nonexempt Income                       C=

Step 4 - If Member is Claiming Married in Block 41 of LES

If C Is Over But C Is Not Over Compute Monthly FITW By                                Amount
          $0               $667 Member has no FITW                                                       $0.00
       $667               $1,996 (C Minus $667) Times 10%                             $
     $1,996               $6,304 [(C Minus $1,966) times 15%] Plus $132.90            $
     $6,304              $12,067 [(C Minus $63,04) Times 25%] Plus $779.10            $
    $12,067              $18,050 [(C Minus $12,067) Times 28%] Plus $2,219.85         $
    $18,050              $31,725 [(C Minus $18,050) Times 33%] Plus $3,895.09         $
    $31,725                      [(C Minus $31,725) Times 35%] Plus $8,407.84         $

Step 4 - If Member Is Claiming Single or Head of Household in Block 41 of LES

If C Is Over But C Is Not Over Compute Monthly FITW By                                Amount
          $0               $221 Member Has No FITW                                                       $0.00
       $221                 $867 (C Minus $221) Times 10%                             $
       $867               $2,950 [(C Minus $867) Times 15%] Plus $64.60               $
     $2,950               $7,025 {(C Minus $2,950) Times 25%] Plus $3,77.05           $
     $7,025              $14,467 [(C Minus $7,025) Times 28%] Plus $1,395.80          $
    $14,467              $31,250 [(C Minus $14,467.00) Times 33%] Plus $3,479.56      $
    $31,250                      [(C Minus $31,250.00) Times 35%] Plus $9,017.95      $
Social Security 6.2%
Medicare        1.45%
Base Limit      $106,000.00

Supplemental Withholding rate is 25%

More information: http://www.irs.gov/pub/irs-pdf/p15.pdf (Percentage method as described on page 36 for an
employee paid monthly)
                              Computing Federal Income Tax Withholding (FITW)



The following charts show how federal income tax withholding (FITW) is computed
The charts reflect year 1 January 2008 federal withholding rates.



    Step       Procedure                                                             Result
     1         Enter Monthly Taxable Income from Block 38, LES                       A=
     2         Multiply Allowances From Block 41 of LES by $291.67                   B = $291.67x =
     3         Subtract B from A to get monthly Nonexempt Income                     C=

Step 4 - If Member is Claiming Married in Block 41 of LES

If C Is Over But C Is Not Over Compute Monthly FITW By                               Amount
           $0               $667 Member has no FITW                                                      $0.00
        $667                $1963 (C Minus $667) Times 10%                           $
       $1963                $6013 [(C Minus $1963) times 15%] Plus $129.60           $
       $6013               $11488 [(C Minus $6013) Times 25%] Plus $737.10           $
     $11488                $17308 [(C Minus $11488) Times 28%] Plus $2105.85         $
     $17308                $30425 [(C Minus $17308) Times 33%] Plus $3735.45         $
     $30425                        [(C Minus $30425) Times 35%] Plus $8064.06        $

Step 4 - If Member Is Claiming Single in Block 41 of LES

If C Is Over But C Is Not Over Compute Monthly FITW By                               Amount
           $0               $221 Member Has No FITW                                                      $0.00
        $221                  $858 (C Minus $221) Times 10%                          $
        $858                $2830 [(C Minus $858) Times 15%]Plus $63.70              $
       $2830                $6644 {(C Minus $2830) Times 25%] Plus $359.50           $
       $6644               $13875 [(C Minus $6644) Times 28%] Plus $1313.00          $
     $13875                $29971 [(C Minus $13875) Times 33%] Plus $3337.68         $
     $29971                        [(C Minus $29971) Times 35%] Plus $8649.36        $
Social Security 6.2%
Medicare        1.45%
Base Limit      $102,000.00

Supplemental Withholding rate is 25%

More information: http://www.irs.gov/pub/irs-pdf/p15.pdf (Percentage method as described on page 36 for an
employee paid monthly)