Formula Tables for Percentage Method Withholding (for Automated Payroll Systems)(p24)

Two formula tables for percentage method withholding are on pages 25 thru 28. 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 $152 but not over $479:
Method:		Income Tax Withheld:
Percentage (Pub. 15)		10% of excess over $152
Alternative 1 (Page 25–26)		10% of such wages minus $15.20
Alternative 2 (Page 27–28)		Such wages minus $152, 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. This procedure is discussed in Publication 15 (Circular E). Before you use these tables to figure the federal income tax withholding on the wages of nonresident alien employees, see Publication 15 (Circular E).

When employers use the percentage method in Publication 15 (Circular E) or the formula tables for percentage method withholding in this publication, 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 $71.15)
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	—$40	0%	$0	$0	—$152	0%	$0
$40	—$204	10% less	$4.00	$152	—$479	10% less	$15.20
$204	—$704	15% less	$14.20	$479	—$1,479	15% less	$39.15
$704	—$1,648	25% less	$84.60	$1,479	—$2,832	25% less	$187.05
$1,648	—$3,394	28% less	$134.04	$2,832	—$4,235	28% less	$272.01
$3,394	—$7,332	33% less	$303.74	$4,235	—$7,443	33% less	$483.76
$7,332	—	35% less	$450.38	$7,443	—	35% less	$632.62
Table B(1)—BIWEEKLY PAYROLL PERIOD (Amount for each allowance claimed is $142.31)
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	—$81	0%	$0	$0	—$304	0%	$0
$81	—$408	10% less	$8.10	$304	—$958	10% less	$30.40
$408	—$1,408	15% less	$28.50	$958	—$2,958	15% less	$78.30
$1,408	—$3,296	25% less	$169.30	$2,958	—$5,663	25% less	$374.10
$3,296	—$6,788	28% less	$268.18	$5,663	—$8,469	28% less	$543.99
$6,788	—$14,663	33% less	$607.58	$8,469	—$14,887	33% less	$967.44
$14,663	—	35% less	$900.84	$14,887	—	35% less	$1,265.18
Table C(1)—SEMIMONTHLY PAYROLL PERIOD (Amount for each allowance claimed is $154.17)
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	—$88	0%	$0	$0	—$329	0%	$0
$88	—$442	10% less	$8.80	$329	—$1,038	10% less	$32.90
$442	—$1,525	15% less	$30.90	$1,038	—$3,204	15% less	$84.80
$1,525	—$3,571	25% less	$183.40	$3,204	—$6,135	25% less	$405.20
$3,571	—$7,354	28% less	$290.53	$6,135	—$9,175	28% less	$589.25
$7,354	—$15,885	33% less	$658.23	$9,175	—$16,127	33% less	$1,048.00
$15,885	—	35% less	$975.93	$16,127	—	35% less	$1,370.54
Table D(1)—MONTHLY PAYROLL PERIOD (Amount for each allowance claimed is $308.33)
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	—$175	0%	$0	$0	—$658	0%	$0
$175	—$883	10% less	$17.50	$658	—$2,075	10% less	$65.80
$883	—$3,050	15% less	$61.65	$2,075	—$6,408	15% less	$169.55
$3,050	—$7,142	25% less	$366.65	$6,408	—$12,271	25% less	$810.35
$7,142	—$14,708	28% less	$580.91	$12,271	—$18,350	28% less	$1,178.48
$14,708	—$31,771	33% less	$1,316.31	$18,350	—$32,254	33% less	$2,095.98
$31,771	—	35% less	$1,951.73	$32,254	—	35% less	$2,741.06

Table E(1)—DAILY or MISCELLANEOUS PAYROLL PERIOD (Amount for each allowance claimed for such period is $14.23)
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	—$8.10	0%	$0	$0	—$30.40	0%	$0
$8.10	—$40.80	10% less	$0.81	$30.40	—$95.80	10% less	$3.04
$40.80	—$140.80	15% less	$2.85	$95.80	—$295.80	15% less	$7.83
$140.80	—$329.60	25% less	$16.93	$295.80	—$566.30	25% less	$37.41
$329.60	—$678.80	28% less	$26.82	$566.30	—$846.90	28% less	$54.39
$678.80	—$1,466.30	33% less	$60.75	$846.90	—$1,488.70	33% less	$96.74
$1,466.30	—	35% less	$90.08	$1,488.70	—	35% less	$126.52
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 $40 and $40 to $204 combined to read, "Over $0, But not over $204."
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 $71.15)
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	—$40	minus $0.00	0%	$0	—$152	minus $0.00	0%
$40	—$204	minus $40.00	10%	$152	—$479	minus $152.00	10%
$204	—$704	minus $94.67	15%	$479	—$1,479	minus $261.00	15%
$704	—$1,648	minus $338.40	25%	$1,479	—$2,832	minus $748.20	25%
$1,648	—$3,394	minus $478.71	28%	$2,832	—$4,235	minus $971.46	28%
$3,394	—$7,332	minus $920.42	33%	$4,235	—$7,443	minus $1,465.94	33%
$7,332	—	minus $1,286.80	35%	$7,443	—	minus $1,807.49	35%
Table B(2)—BIWEEKLY PAYROLL PERIOD (Amount for each allowance claimed is $142.31)
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	—$81	minus $0.00	0%	$0	—$304	minus $0.00	0%
$81	—$408	minus $81.00	10%	$304	—$958	minus $304.00	10%
$408	—$1,408	minus $190.00	15%	$958	—$2,958	minus $522.00	15%
$1,408	—$3,296	minus $677.20	25%	$2,958	—$5,663	minus $1,496.40	25%
$3,296	—$6,788	minus $957.79	28%	$5,663	—$8,469	minus $1,942.82	28%
$6,788	—$14,663	minus $1,841.15	33%	$8,469	—$14,887	minus $2,931.64	33%
$14,663	—	minus $2,573.83	35%	$14,887	—	minus $3,614.80	35%
Table C(2)—SEMIMONTHLY PAYROLL PERIOD (Amount for each allowance claimed is $154.17)
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	—$88	minus $0.00	0%	$0	—$329	minus $0.00	0%
$88	—$442	minus $88.00	10%	$329	—$1,038	minus $329.00	10%
$442	—$1,525	minus $206.00	15%	$1,038	—$3,204	minus $565.33	15%
$1,525	—$3,571	minus $733.60	25%	$3,204	—$6,135	minus $1,620.80	25%
$3,571	—$7,354	minus $1,037.61	28%	$6,135	—$9,175	minus $2,104.46	28%
$7,354	—$15,885	minus $1,994.64	33%	$9,175	—$16,127	minus $3,175.76	33%
$15,885	—	minus $2,788.37	35%	$16,127	—	minus $3,915.83	35%
Table D(2)—MONTHLY PAYROLL PERIOD (Amount for each allowance claimed is $308.33)
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	—$175	minus $0.00	0%	$0	—$658	minus $0.00	0%
$175	—$883	minus $175	10%	$658	—$2,075	minus $658.00	10%
$883	—$3,050	minus $411.00	15%	$2,075	—$6,408	minus $1,130.33	15%
$3,050	—$7,142	minus $1,466.60	25%	$6,408	—$12,271	minus $3,241.40	25%
$7,142	—$14,708	minus $2,074.68	28%	$12,271	—$18,350	minus $4,208.86	28%
$14,708	—$31,771	minus $3,988.82	33%	$18,350	—$32,254	minus $6,351.45	33%
$31,771	—	minus $5,576.37	35%	$32,254	—	minus $7,831.60	35%

Table E(2)—DAILY or MISCELLANEOUS PAYROLL PERIOD (Amount for each allowance claimed per day for such period is $14.23)
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
$0.00	—$8.10	minus $0.00	0%	$0.00	—$30.40	minus $0.00	0%
$8.10	—$40.80	minus $8.10	10%	$30.40	—$95.80	minus $30.40	10%
$40.80	—$140.80	minus $19.00	15%	$95.80	—$295.80	minus $52.20	15%
$140.80	—$329.60	minus $67.72	25%	$295.80	—$566.30	minus $149.64	25%
$329.60	—$678.80	minus $95.78	28%	$566.30	—$846.90	minus $194.26	28%
$678.80	—$1,466.30	minus $184.10	33%	$846.90	—$1,488.70	minus $293.14	33%
$1,466.30	—	minus $257.36	35%	$1,488.70	—	minus $361.47	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 $40 and $40 to $204 combined to read, "Over $0, But not over $204."
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.