Formula Tables for Percentage Method Withholding (for Automated Payroll Systems)(p25)

Two formula tables for percentage method withholding are on pages 26–29. 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 $156 but not over $490:
Method:		Income Tax Withheld:
Percentage (Pub. 15)		10% of excess over $156
Alternative 1 (pages 26–27)		10% of such wages minus $15.60
Alternative 2 (pages 28–29)		Such wages minus $156, 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 dropping amounts under 50 cents and increasing amounts from 50 to 99 cents to the next higher dollar. For example, $2.30 becomes $2 and $2.50 becomes $3. This rounding meets the tolerances under section 3402(h)(4).

Table A(1)—WEEKLY PAYROLL PERIOD (Amount for each allowance claimed is $73.08)
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	—$41	0%	$0	$0	—$156	0%	$0
$41	—$209	10% less	$4.10	$156	—$490	10% less	$15.60
$209	—$721	15% less	$14.55	$490	—$1,515	15% less	$40.10
$721	—$1,688	25% less	$86.65	$1,515	—$2,900	25% less	$191.60
$1,688	—$3,477	28% less	$137.29	$2,900	—$4,338	28% less	$278.60
$3,477	—$7,510	33% less	$311.14	$4,338	—$7,624	33% less	$495.50
$7,510	—	35% less	$461.34	$7,624	—	35% less	$647.98
Table B(1)—BIWEEKLY PAYROLL PERIOD (Amount for each allowance claimed is $146.15)
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	—$83	0%	$0	$0	—$312	0%	$0
$83	—$417	10% less	$8.30	$312	—$981	10% less	$31.20
$417	—$1,442	15% less	$29.15	$981	—$3,031	15% less	$80.25
$1,442	—$3,377	25% less	$173.35	$3,031	—$5,800	25% less	$383.35
$3,377	—$6,954	28% less	$274.66	$5,800	—$8,675	28% less	$557.35
$6,954	—$15,019	33% less	$622.36	$8,675	—$15,248	33% less	$991.10
$15,019	—	35% less	$922.74	$15,248	—	35% less	$1,296.06
Table C(1)—SEMIMONTHLY PAYROLL PERIOD (Amount for each allowance claimed is $158.33)
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	—$90	0%	$0	$0	—$338	0%	$0
$90	—$452	10% less	$9.00	$338	—$1,063	10% less	$33.80
$452	—$1,563	15% less	$31.60	$1,063	—$3,283	15% less	$86.95
$1,563	—$3,658	25% less	$187.90	$3,283	—$6,283	25% less	$415.25
$3,658	—$7,533	28% less	$297.64	$6,283	—$9,398	28% less	$603.74
$7,533	—$16,271	33% less	$674.29	$9,398	—$16,519	33% less	$1,073.64
$16,271	—	35% less	$999.71	$16,519	—	35% less	$1,404.02
Table D(1)—MONTHLY PAYROLL PERIOD (Amount for each allowance claimed is $316.67)
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	—$179	0%	$0	$0	—$675	0%	$0
$179	—$904	10% less	$17.90	$675	—$2,125	10% less	$67.50
$904	—$3,125	15% less	$63.10	$2,125	—$6,567	15% less	$173.75
$3,125	—$7,317	25% less	$375.60	$6,567	—$12,567	25% less	$830.45
$7,317	—$15,067	28% less	$595.11	$12,567	—$18,796	28% less	$1,207.46
$15,067	—$32,542	33% less	$1,348.46	$18,796	—$33,038	33% less	$2,147.26
$32,542	—	35% less	$1,999.30	$33,038	—	35% less	$2,808.02

Table E(1)—DAILY or MISCELLANEOUS PAYROLL PERIOD (Amount for each allowance claimed for such period is $14.62)
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	—$8.30	0%	$0	$0	—$31.20	0%	$0
$8.30	—$41.70	10% less	$0.83	$31.20	—$98.10	10% less	$3.12
$41.70	—$144.20	15% less	$2.92	$98.10	—$303.10	15% less	$8.03
$144.20	—$337.70	25% less	$17.33	$303.10	—$580.00	25% less	$38.34
$337.70	—$695.40	28% less	$27.46	$580.00	—$867.50	28% less	$55.73
$695.40	—$1,501.90	33% less	$62.22	$867.50	—$1,524.80	33% less	$99.11
$1,501.90	—	35% less	$92.25	$1,524.80	—	35% less	$129.60
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 $41 and $41 to $209 combined to read, "Over $0, But not over $209."
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 $73.08)
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	—$41	minus $0.00	0%	$0	—$156	minus $0.00	0%
$41	—$209	minus $41.00	10%	$156	—$490	minus $156.00	10%
$209	—$721	minus $97.00	15%	$490	—$1,515	minus $267.33	15%
$721	—$1,688	minus $346.60	25%	$1,515	—$2,900	minus $766.40	25%
$1,688	—$3,477	minus $490.32	28%	$2,900	—$4,338	minus $995.00	28%
$3,477	—$7,510	minus $942.85	33%	$4,338	—$7,624	minus $1,501.52	33%
$7,510	—	minus $1,318.11	35%	$7,624	—	minus $1,851.37	35%
Table B(2)—BIWEEKLY PAYROLL PERIOD (Amount for each allowance claimed is $146.15)
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	—$83	minus $0.00	0%	$0	—$312	minus $0.00	0%
$83	—$417	minus $83.00	10%	$312	—$981	minus $312.00	10%
$417	—$1,442	minus $194.33	15%	$981	—$3,031	minus $535.00	15%
$1,442	—$3,377	minus $693.40	25%	$3,031	—$5,800	minus $1,533.40	25%
$3,377	—$6,954	minus $980.93	28%	$5,800	—$8,675	minus $1,990.54	28%
$6,954	—$15,019	minus $1,885.94	33%	$8,675	—$15,248	minus $3,003.33	33%
$15,019	—	minus $2,636.40	35%	$15,248	—	minus $3,703.03	35%
Table C(2)—SEMIMONTHLY PAYROLL PERIOD (Amount for each allowance claimed is $158.33)
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	—$90	minus $0.00	0%	$0	—$338	minus $0.00	0%
$90	—$452	minus $90.00	10%	$338	—$1,063	minus $338.00	10%
$452	—$1,563	minus $210.67	15%	$1,063	—$3,283	minus $579.67	15%
$1,563	—$3,658	minus $751.60	25%	$3,283	—$6,283	minus $1,661.00	25%
$3,658	—$7,533	minus $1,063.00	28%	$6,283	—$9,398	minus $2,156.21	28%
$7,533	—$16,271	minus $2,043.30	33%	$9,398	—$16,519	minus $3,253.45	33%
$16,271	—	minus $2,856.31	35%	$16,519	—	minus $4,011.49	35%
Table D(2)—MONTHLY PAYROLL PERIOD (Amount for each allowance claimed is $316.67)
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	—$179	minus $0.00	0%	$0	—$675	minus $0.00	0%
$179	—$904	minus $179.00	10%	$675	—$2,125	minus $675.00	10%
$904	—$3,125	minus $420.67	15%	$2,125	—$6,567	minus $1,158.33	15%
$3,125	—$7,317	minus $1,502.40	25%	$6,567	—$12,567	minus $3,321.80	25%
$7,317	—$15,067	minus $2,125.39	28%	$12,567	—$18,796	minus $4,312.36	28%
$15,067	—$32,542	minus $4,086.24	33%	$18,796	—$33,038	minus $6,506.85	33%
$32,542	—	minus $5,712.29	35%	$33,038	—	minus $8,022.91	35%

Table E(2)—DAILY or MISCELLANEOUS PAYROLL PERIOD (Amount for each allowance claimed per day for such period is $14.62)
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	—$8.30	minus $0.00	0%	$0.00	—$31.20	minus $0.00	0%
$8.30	—$41.70	minus $8.30	10%	$31.20	—$98.10	minus $31.20	10%
$41.70	—$144.20	minus $19.43	15%	$98.10	—$303.10	minus $53.50	15%
$144.20	—$337.70	minus $69.32	25%	$303.10	—$580.00	minus $153.34	25%
$337.70	—$695.40	minus $98.06	28%	$580.00	—$867.50	minus $199.04	28%
$695.40	—$1,501.90	minus $188.55	33%	$867.50	—$1,524.80	minus $300.32	33%
$1,501.90	—	minus $263.59	35%	$1,524.80	—	minus $370.29	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 $41 and $41 to $209 combined to read, "Over $0, But not over $209."
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.