Formula Tables for Percentage Method Withholding (for Automated Payroll Systems)(p37)

Two formula tables for percentage method withholding are on pages 38 and 39. The differences in the Alternative Percentage Method formulas and the steps for figuring withheld tax for different payroll systems are shown in this example.

If wages exceeding the allowance amount are over $303 but not over $470:
Method:		Income Tax Withheld:
Percentage (page 4)		10% of excess over $303
Alternative 1 (page 38)		10% of such wages minus $30.30
Alternative 2 (page 39)		Such wages minus $303, times 10% of remainder

Employers must use a modified procedure to figure the amount of federal income tax withholding on the wages of nonresident alien employees. Before you use these tables to figure the federal income tax withholding on wages of nonresident alien employees, review the procedures discussed in Withholding Income Taxes on the Wages of Nonresident Alien Employees on page 2. See Section 9 of Publication 15 (Circular E) for additional information.

When employers use the Percentage Method or the Formula Tables for Percentage Method Withholding (next page), the tax for the pay period may be rounded to the nearest dollar. If rounding is used, it must be used consistently. Withheld tax amounts should be rounded to the nearest whole dollar by (a) dropping amounts under 50 cents and (b) increasing amounts from 50 to 99 cents to the next higher dollar. This rounding will be considered to meet the tolerances under section 3402(h)(4).

Table A(1)—WEEKLY PAYROLL PERIOD (Amount for each allowance claimed is $70.19)
Single Person				Married Person
If the wage in excess of allowance amount is:		The income tax to be withheld is:		If the wage in excess of allowance amount is:		The income tax to be withheld is:
Over—	But not over—	Of such wage—	From product	Over—	But not over—	Of such wage—	From product
$0	—$138	0%	$0	$0	—$303	0%	$0
$138	—$200	10% less	$13.80	$303	—$470	10% less	$30.30
$200	—$696	15% less	$23.80	$470	—$1,455	15% less	$53.80
$696	—$1,279	25% less	$93.40	$1,455	—$2,272	25% less	$199.30
$1,279	—$3,338	28% less	$131.77	$2,272	—$4,165	28% less	$267.46
$3,338	—$7,212	33% less	$298.67	$4,165	—$7,321	33% less	$475.71
$7,212	—	35% less	$442.91	$7,321	—	35% less	$622.13
Table B(1)—BIWEEKLY PAYROLL PERIOD (Amount for each allowance claimed is $140.38)
Single Person				Married Person
If the wage in excess of allowance amount is:		The income tax to be withheld is:		If the wage in excess of allowance amount is:		The income tax to be withheld is:
Over—	But not over—	Of such wage—	From product	Over—	But not over—	Of such wage—	From product
$0	—$276	0%	$0	$0	—$606	0%	$0
$276	—$400	10% less	$27.60	$606	—$940	10% less	$60.60
$400	—$1,392	15% less	$47.60	$940	—$2,910	15% less	$107.60
$1,392	—$2,559	25% less	$186.80	$2,910	—$4,543	25% less	$398.60
$2,559	—$6,677	28% less	$263.57	$4,543	—$8,331	28% less	$534.89
$6,677	—$14,423	33% less	$597.42	$8,331	—$14,642	33% less	$951.44
$14,423	—	35% less	$885.88	$14,642	—	35% less	$1,244.28
Table C(1)—SEMIMONTHLY PAYROLL PERIOD (Amount for each allowance claimed is $152.08)
Single Person				Married Person
If the wage in excess of allowance amount is:		The income tax to be withheld is:		If the wage in excess of allowance amount is:		The income tax to be withheld is:
Over—	But not over—	Of such wage—	From product	Over—	But not over—	Of such wage—	From product
$0	—$299	0%	$0	$0	—$656	0%	$0
$299	—$433	10% less	$29.90	$656	—$1,019	10% less	$65.60
$433	—$1,508	15% less	$51.55	$1,019	—$3,152	15% less	$116.55
$1,508	—$2,772	25% less	$202.35	$3,152	—$4,922	25% less	$431.75
$2,772	—$7,233	28% less	$285.51	$4,922	—$9,025	28% less	$579.41
$7,233	—$15,625	33% less	$647.16	$9,025	—$15,863	33% less	$1,030.66
$15,625	—	35% less	$959.66	$15,863	—	35% less	$1,347.92
Table D(1)—MONTHLY PAYROLL PERIOD (Amount for each allowance claimed is $304.17)
Single Person				Married Person
If the wage in excess of allowance amount is:		The income tax to be withheld is:		If the wage in excess of allowance amount is:		The income tax to be withheld is:
Over—	But not over—	Of such wage—	From product	Over—	But not over—	Of such wage—	From product
$0	—$598	0%	$0	$0	—$1,313	0%	$0
$598	—$867	10% less	$59.80	$1,313	—$2,038	10% less	$131.30
$867	—$3,017	15% less	$103.15	$2,038	—$6,304	15% less	$233.20
$3,017	—$5,544	25% less	$404.85	$6,304	—$9,844	25% less	$863.60
$5,544	—$14,467	28% less	$571.17	$9,844	—$18,050	28% less	$1,158.92
$14,467	—$31,250	33% less	$1,294.52	$18,050	—$31,725	33% less	$2,061.42
$31,250	—	35% less	$1,919.52	$31,725	—	35% less	$2,695.92
Table E(1)—DAILY or MISCELLANEOUS PAYROLL PERIOD (Amount for each allowance claimed for such period is $14.04)
Single Person				Married Person
If the wage in excess of allowance amount divided by the number of days in the pay period is:		The income tax to be withheld multiplied by the number of days in such period is:		If the wage in excess of allowance amount divided by the number of days in the pay period is:		The income tax to be withheld multiplied by the number of days in such period is:
Over—	But not over—	Of such wage—	From product	Over—	But not over—	Of such wage—	From product
$0	—$27.60	0%	$0	$0	—$60.60	0%	$0
$27.60	—$40.00	10% less	$2.76	$60.60	—$94.00	10% less	$6.06
$40.00	—$139.20	15% less	$4.76	$94.00	—$291.00	15% less	$10.76
$139.20	—$255.90	25% less	$18.68	$291.00	—$454.30	25% less	$39.86
$255.90	—$667.70	28% less	$26.35	$454.30	—$833.10	28% less	$53.48
$667.70	—$1,442.30	33% less	$59.74	$833.10	—$1,464.20	33% less	$95.14
$1,442.30	—	35% less	$88.59	$1,464.20	—	35% less	$124.43
Note.— The adjustment factors may be reduced by one–half cent (e.g., 7.50 to 7.495; 69.38 to 69.375) to eliminate separate half rounding operations.
The first two brackets of these tables may be combined, provided zero withholding is used to credit withholding amounts computed by the combined bracket rates, for example, $0 to $51 and $51 to $198 combined to read, "Over $0, But not over $198."
The employee's excess wage (gross wage less amount for allowances claimed) is used with the applicable percentage rates and subtraction factors to calculate the amount of income tax withheld.

Table A(2)—WEEKLY PAYROLL PERIOD (Amount for each allowance claimed is $70.19)
Single Person				Married Person
If the wage in excess of allowance amount is:		The income tax to be withheld is:		If the wage in excess of allowance amount is:		The income tax to be withheld is:
Over—	But not over—	Such wage—	Times	Over—	But not over—	Such wage—	Times
$0	—$138	minus $0	0%	$0	—$303	minus $0.00	0%
$138	—$200	minus $138.00	10%	$303	—$470	minus $303.00	10%
$200	—$696	minus $158.67	15%	$470	—$1,455	minus $358.67	15%
$696	—$1,279	minus $373.60	25%	$1,455	—$2,272	minus $797.20	25%
$1,279	—$3,338	minus $470.61	28%	$2,272	—$4,165	minus $955.21	28%
$3,338	—$7,212	minus $905.06	33%	$4,165	—$7,321	minus $1,441.55	33%
$7,212	—	minus $1,265.46	35%	$7,321	—	minus $1,777.51	35%
Table B(2)—BIWEEKLY PAYROLL PERIOD (Amount for each allowance claimed is $140.38)
Single Person				Married Person
If the wage in excess of allowance amount is:		The income tax to be withheld is:		If the wage in excess of allowance amount is:		The income tax to be withheld is:
Over—	But not over—	Such wage—	Times	Over—	But not over—	Such wage—	Times
$0	—$276	minus $0.00	0%	$0	—$606	minus $0.00	0%
$276	—$400	minus $276.00	10%	$606	—$940	minus $606.00	10%
$400	—$1,392	minus $317.33	15%	$940	—$2,910	minus $717.33	15%
$1,392	—$2,559	minus $747.20	25%	$2,910	—$4,543	minus $1,594.40	25%
$2,559	—$6,677	minus $941.32	28%	$4,543	—$8,331	minus $1,910.32	28%
$6,677	—$14,423	minus $1,810.36	33%	$8,331	—$14,642	minus $2,883.15	33%
$14,423	—	minus $2,531.09	35%	$14,642	—	minus $3,555.09	35%
Table C(2)—SEMIMONTHLY PAYROLL PERIOD (Amount for each allowance claimed is $152.08)
Single Person				Married Person
If the wage in excess of allowance amount is:		The income tax to be withheld is:		If the wage in excess of allowance amount is:		The income tax to be withheld is:
Over—	But not over—	Such wage—	Times	Over—	But not over—	Such wage—	Times
$0	—$299	minus $0.00	0%	$0	—$656	minus $0.00	0%
$299	—$433	minus $299.00	10%	$656	—$1,019	minus $656.00	10%
$433	—$1,508	minus $343.67	15%	$1,019	—$3,152	minus $777.00	15%
$1,508	—$2,772	minus $809.40	25%	$3,152	—$4,922	minus $1,727.00	25%
$2,772	—$7,233	minus $1,019.68	28%	$4,922	—$9,025	minus $2,069.32	28%
$7,233	—$15,625	minus $1,961.09	33%	$9,025	—$15,863	minus $3,123.21	33%
$15,625	—	minus $2,741.89	35%	$15,863	—	minus $3,851.20	35%
Table D(2)—MONTHLY PAYROLL PERIOD (Amount for each allowance claimed is $304.17)
Single Person				Married Person
If the wage in excess of allowance amount is:		The income tax to be withheld is:		If the wage in excess of allowance amount is:		The income tax to be withheld is:
Over—	But not over—	Such wage—	Times	Over—	But not over—	Such wage—	Times
$0	—$598	minus $0.00	0%	$0	—$1,313	minus $0.00	0%
$598	—$867	minus $598.00	10%	$1,313	—$2,038	minus $1,313.00	10%
$867	—$3,017	minus $687.67	15%	$2,038	—$6,304	minus $1,554.67	15%
$3,017	—$5,544	minus $1,619.40	25%	$6,304	—$9,844	minus $3,454.40	25%
$5,544	—$14,467	minus $2,039.89	28%	$9,844	—$18,050	minus $4,139.00	28%
$14,467	—$31,250	minus $3,922.79	33%	$18,050	—$31,725	minus $6,246.73	33%
$31,250	—	minus $5,484.34	35%	$31,725	—	minus $7,702.63	35%
Table E(2)—DAILY or MISCELLANEOUS PAYROLL PERIOD (Amount for each allowance claimed per day for such period is $14.04)
Single Person				Married Person
If the wage in excess of allowance amount divided by the number of days in the pay period is:		The income tax to be withheld multiplied by the number of days in such period is:		If the wage in excess of allowance amount divided by the number of days in the pay period is:		The income tax to be withheld multiplied by the number of days in such period is:
Over—	But not over—	Such wage—	Times	Over—	But not over—	Such wage—	Times
$0	—$27.60	minus $0.00	0%	$0	—$60.60	minus $0.00	0%
$27.60	—$40.00	minus $27.60	10%	$60.60	—$94.00	minus $60.60	10%
$40.00	—$139.20	minus $31.73	15%	$94.00	—$291.00	minus $71.73	15%
$139.20	—$255.90	minus $74.72	25%	$291.00	—$454.30	minus $159.44	25%
$255.90	—$667.70	minus $94.11	28%	$454.30	—$833.10	minus $191.01	28%
$667.70	—$1,442.30	minus $181.03	33%	$833.10	—$1,464.20	minus $288.31	33%
$1,442.30	—	minus $253.10	35%	$1,464.20	—	minus $355.51	35%
Note.— The first two brackets of these tables may be combined, provided zero withholding is used to credit withholding amounts computed by the combined bracket rates, for example, $0 to $51 and $51 to $198 combined to read, "Over $0, But not over $198."
The employee's excess wage (gross wage less amount for allowances claimed) is used with the applicable percentage rates and subtraction factors to calculate the amount of income tax withheld.