Chart for Withholding Federal Income Tax by eok30690

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```									                 Federal Percentage Method of Withholding
For Payroll Paid January 1 – December 31, 2010
Source: IRS Publication 15 (January 2010)

Procedures used to calculate federal taxes withheld*:
1. Obtain the employee’s gross wage for the payroll period.
2. Determine the allowance amount from the “Withholding Allowance Table” below according to
the employee’s number of withholding allowances and frequency of payment.
3. Determine the deduction amounts, which can be approximated from a previous earnings
statement, for pre-tax deductions such as health insurance, tax sheltered annuities (TSA), and
employee reimbursement accounts (e.g. ERA).
4. Subtract the pre-tax deductions and withholding allowance amount from the employee’s gross
wages to determine the taxable wage.
Below are examples how to calculate withholding taxes using the tables presented here within. The
examples below include the following assumptions: 2 personal allowances and pre-tax deductions for
health insurance, TSA & ERA.

Biweekly Example                                      Monthly Example
1. Single employee’s gross              \$1,500.00     1. Married employee's gross          \$5,400.00
biweekly wage                                         monthly wage
2. Less amount for two personal         - \$280.76     2. Less amount for two personal      - \$608.34
allowances (\$140.38 x 2)                              allowances (\$304.17 x 2)
3. Less pre-tax deductions                            3. Less pre-tax deductions
3A.   Pre-tax health insurance              - \$5.00   3A.   Pre-tax health insurance        - \$20.00
3B.   Pre-tax TSA                         - \$20.00    3B.   Pre-tax TSA                     - \$80.00
3C.   Pre-tax ERA                         - \$25.00    3C.   Pre-tax ERA                    - \$100.00
4. Taxable wage (line 1 minus lines     \$1,169.24     4. Taxable wage (line 1 minus        \$4,591.66
2, 3A , 3B & 3C)                                      lines 2, 3A, 3B & 3C)
5. Percentage withholding (withholding on             5. Percentage withholding (withholding on
\$1,169.24 from Table 2 Biweekly Payroll               \$4,591.66 from Table 4 Monthly Payroll
Period, Single Person status)                         Period, Married Person status)
5A.   Tax on minimum amount of              \$16.80    5A.   Tax on minimum amount             \$89.60
15% bracket (\$401.00)                                 of 15% bracket
(\$2,042.00)
5B.   Taxable wage (from line 4)        \$1,169.24     5B.   Taxable wage (from line 4)     \$4,591.66
5C.   Minus minimum amount of             -401.00     5C.   Minus minimum amount of        -2,042.00
15% bracket                                           15% bracket
5D.   Amount over bracket                 \$768.24     5D.   Amount over bracket            \$2,549.66
minimum                                               minimum
5E.   15% of 5D                           \$115.24     5E.   15% of 5D                        \$382.45
5F.   Biweekly withholding (5A plus       \$132.04     5F.   Monthly withholding (5A          \$472.05
5E)                                                   plus 5E)
WITHHOLDING ALLOWANCE TABLE
Source: IRS Publication 15 (January 2010)

Number of                           And wages are paid
Allowances Is
Biweekly               Monthly              Annually
The total amount of withholding allowances for the
payroll period is:
0                           \$0                      \$0                    \$0
1                       140.38                 304.17            3,650.00
2                       280.76                 608.34            7,300.00
3                       421.14                 912.51           10,950.00
4                       561.52               1,216.68           14,600.00
5                       701.90               1,520.85           18,250.00
6                       842.28               1,825.02           21,900.00
7                       982.66               2,129.19           25,500.00
8                     1,123.04               2,433.36           29,200.00
9                     1,263.42               2,737.53           32,850.00
10                    1,403.80               3,041.70           36,500.00
11 or More      Multiply the amount of one withholding allowance for the
specific payroll period by the number of allowances claimed
TABLES FOR PERCENTAGE METHOD OF WITHHOLDING
Source: IRS Publication 15 (January 2010)

Table 2 - Biweekly Payroll Period
(a) SINGLE person (including head of                    (b) MARRIED person –
household) –
If the amount of     The amount of income        If the amount of    The amount of income
wages (after         tax to withhold is:         wages (after        tax to withhold is:
subtracting                                      subtracting
withholding                                      withholding
allowances) is:                                  allowances) is:
Not over \$233                          \$0        Not over \$529                         \$0
Over:    But not                                 Over:    But not
over:                                            over:
\$233       \$401     10% of excess over \$233      \$529       \$942    10% of excess over \$529
\$401     \$1,387    \$16.80 plus 15% of excess     \$942     \$2,913   \$41.30 plus 15% of excess
over \$401                                       over \$942
\$1,387    \$2,604   \$164.70 plus 25% of excess    \$2,913    \$3,617        \$336.95 plus 25% of
over \$1,387                             excess over \$2,913
\$2,604    \$3,248   \$468.95 plus 27% of excess    \$3,617    \$4,771        \$512.95 plus 27% of
over \$2,604                             excess over \$3,617
\$3,248    \$3,373   \$642.83 plus 30% of excess    \$4,771    \$5,579        \$824.53 plus 25% of
over \$3,248                             excess over \$4,771
\$3,373    \$6,688   \$680.33 plus 28% of excess    \$5,579    \$8,346      \$1,026.53 plus 28% of
over \$3,373                             excess over \$5,579
\$6,688   \$14,450       \$1,608.53 plus 33% of     \$8,346   \$14,669      \$1,801.29 plus 33% of
excess over \$6,688                              excess over \$8,346
\$14,450                 \$4,169.99 plus 35% of    \$14,669                \$3,887.88 plus 35% of
excess over \$14,450                             excess over \$14,669
TABLES FOR PERCENTAGE METHOD OF WITHHOLDING (continued)
Source: IRS Publication 15 (January 2010)

Table 4 - Monthly Payroll Period
(a) SINGLE person (including head of                    (b) MARRIED person –
household) –
If the amount of     The amount of income        If the amount of      The amount of income
wages (after         tax to withhold is:         wages (after          tax to withhold is:
subtracting                                      subtracting
withholding                                      withholding
allowances) is:                                  allowances) is:
Not over \$504                          \$0       Not over \$1,146                         \$0
Over:    But not                                 Over:    But not
over:                                            over:
\$504      \$869      10% of excess over \$504     \$1,146    \$2,042    10% of excess over \$1,146
\$869     \$3,004    \$36.50 plus 15% of excess    \$2,042    \$6,313    \$89.60 plus 15% of excess
over \$869                                       over \$2,042
\$3,004    \$5,642   \$356.75 plus 25% of excess    \$6,313    \$7,838         \$730.25 plus 25% of
over \$3,004                              excess over \$6,313
\$5,642    \$7,038       \$1,016.25 plus 27% of     \$7,838   \$10,338        \$1,111.50 plus 27% of
excess over \$5,642                                excess over \$7,838
\$7,038    \$7,308       \$1,393.17 plus 30% of    \$10,338   \$12,088        \$1,786.50 plus 25% of
excess over \$7,038                               excess over \$10,338
\$7,308   \$14,492       \$1,474.17 plus 28% of    \$12,088   \$18,083        \$2,224.00 plus 28% of
excess over \$7,308                               excess over \$12,088
\$14,492   \$31,308       \$3,485.69 plus 33% of    \$18,083   \$31,783        \$3,902.60 plus 33% of
excess over \$14,492                               excess over \$18,083
\$31,308                 \$9,034.97 plus 35% of    \$31,783                  \$8,423.60 plus 35% of
excess over \$31,308                               excess over \$31,783
TABLES FOR PERCENTAGE METHOD OF WITHHOLDING (continued)
Source: IRS Publication 15 (January 2010)

Table 7 - Annual Payroll Period
(a) SINGLE person (including head of                      (b) MARRIED person –
household) –
If the amount of      The amount of income         If the amount of     The amount of income
wages (after          tax to withhold is:          wages (after         tax to withhold is:
subtracting                                        subtracting
withholding                                        withholding
allowances) is:                                    allowances) is:
Not over \$6,050                          \$0       Not over \$13,750                       \$0
Over:     But not                                  Over:     But not
over:                                              over:
\$6,050    \$10,425    10% of excess over \$6,050    \$13,750    \$24,500        10% of excess over
\$13,750
\$10,425    \$36,050   \$437.50 plus 15% of excess    \$24,500    \$75,750     \$1,075.00 plus 15% of
over \$10,425                             excess over \$24,500
\$36,050    \$67,700       \$4,281.25 plus 25% of     \$75,750    \$94,050     \$8,762.50 plus 25% of
excess over \$36,050                              excess over \$75,750
\$67,700    \$84,450      \$12,193.75 plus 27% of     \$94,050   \$124,050    \$13,337.50 plus 27% of
excess over \$67,700                              excess over \$94,050
\$84,450    \$87,700      \$16,716.25 plus 30% of    \$124,050   \$145,050    \$21,437.50 plus 25% of
excess over \$84,450                             excess over \$124,050
\$87,700   \$173,900      \$17,691.25 plus 28% of    \$145,050   \$217,000    \$26,687.50 plus 28% of
excess over \$87,700                             excess over \$145,050
\$173,900   \$375,700      \$41,827.25 plus 33% of    \$217,000   \$381,400    \$46,833.50 plus 33% of
excess over \$173,900                             excess over \$217,000
\$375,700                \$108,421.25 plus 35% of    \$381,400              \$101,085.50 plus 35% of
excess over \$375,700                             excess over \$381,400

UW1170 Rev 1/10

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