p15a-009.htm#TXMP6c2f7d93
Formula Tables for Percentage Method Withholding (for Automated Payroll Systems)(p24)

Percentage Method Withholding

Two formula tables for percentage method withholding are on pages 25 and 26. The differences in the Alternative Percentage Method formulas and the steps for figuring withheld tax for different payroll systems are shown in this example.

MARRIED PERSON
(Weekly Payroll Period)

If wages exceeding the allowance amount are over $154 but not over $453:
Method:		Income Tax Withheld:
Percentage (Pub. 15)		10% of excess over $154
Alternative 1 (Page 25)		10% of such wages minus $15.40
Alternative 2 (Page 26)		Such wages minus $154, times 10% of remainder

taxmap/pubs/p15a-009.htm#TXMP355eaa48
Nonresident alien employees.(p24)

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).

taxmap/pubs/p15a-009.htm#TXMP26e075ac
Rounding.(p24)

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).

Alternative 1.—Tables for Percentage Method Withholding Computations

(For Wages Paid in 2008)

Table A(1)—WEEKLY PAYROLL PERIOD (Amount for each allowance claimed is $67.31)

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	—$51	0%	$0	$0	—$154	0%	$0
$51	—$198	10% less	$5.10	$154	—$453	10% less	$15.40
$198	—$653	15% less	$15.00	$453	—$1,388	15% less	$38.05
$653	—$1,533	25% less	$80.30	$1,388	—$2,651	25% less	$176.85
$1,533	—$3,202	28% less	$126.29	$2,651	—$3,994	28% less	$256.38
$3,202	—$6,916	33% less	$286.39	$3,994	—$7,021	33% less	$456.08
$6,916	—	35% less	$424.71	$7,021	—	35% less	$596.50
Table B(1)—BIWEEKLY PAYROLL PERIOD (Amount for each allowance claimed is $134.62)

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	—$102	0%	$0	$0	—$308	0%	$0
$102	—$396	10% less	$10.20	$308	—$906	10% less	$30.80
$396	—$1,306	15% less	$30.00	$906	—$2,775	15% less	$76.10
$1,306	—$3,066	25% less	$160.60	$2,775	—$5,302	25% less	$353.60
$3,066	—$6,404	28% less	$252.58	$5,302	—$7,988	28% less	$512.66
$6,404	—$13,833	33% less	$572.78	$7,988	—$14,042	33% less	$912.066
$13,833	—	35% less	$849.44	$14,042	—	35% less	$1,192.90
Table C(1)—SEMIMONTHLY PAYROLL PERIOD (Amount for each allowance claimed is $145.83)

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	—$110	0%	$0	$0	—$333	0%	$0
$110	—$429	10% less	$11.00	$333	—$981	10% less	$33.30
$429	—$1,415	15% less	$32.45	$981	—$3,006	15% less	$82.35
$1,415	—$3,322	25% less	$173.95	$3,006	—$5,744	25% less	$382.95
$3,322	—$6,938	28% less	$273.61	$5,744	—$8,654	28% less	$555.27
$6,938	—$14,985	33% less	$620.51	$8,654	—$15,213	33% less	$987.97
$14,985	—	35% less	$920.21	$15,213	—	35% less	$1,292.23
Table D(1)—MONTHLY PAYROLL PERIOD (Amount for each allowance claimed is $291.67)

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	—$221	0%	$0	$0	—$667	0%	$0
$221	—$858	10% less	$22.10	$667	—$1,963	10% less	$66.70
$858	—$2,830	15% less	$65.00	$1,963	—$6,013	15% less	$164.85
$2,830	—$6,644	25% less	$348.00	$6,013	—$11,488	25% less	$766.15
$6,644	—$13,875	28% less	$547.32	$11,488	—$17,308	28% less	$1,110.79
$13,875	—$29,971	33% less	$1,214.07	$17,308	—$30,425	33% less	$1,976.19
$29,971	—	35% less	$1,840.49	$30,425	—	35% less	$2,584.69
Table E(1)—DAILY or MISCELLANEOUS PAYROLL PERIOD (Amount for each allowance claimed for such period is $13.46)

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
$0.00	—$10.20	0%	$0	$0	—$30.80	0%	$0
$10.20	—$39.60	10% less	$1.02	$30.80	—$90.60	10% less	$3.08
$39.60	—$130.60	15% less	$3.00	$90.60	—$277.50	15% less	$7.61
$130.60	—$306.60	25% less	$16.06	$277.50	—$530.20	25% less	$35.36
$306.60	—$640.40	28% less	$25.26	$530.20	—$798.80	28% less	$51.26
$640.40	—$1,383.30	33% less	$57.28	$798.80	—$1,404.20	33% less	$91.19
$1,383.30	—	35% less	$84.95	$1,404.20	—	35% less	$119.28
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.

Alternative 2.—Tables for Percentage Method Withholding Computations

(For Wages Paid in 2008)

Table A(2)—WEEKLY PAYROLL PERIOD (Amount for each allowance claimed is $67.31)

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	—$51	minus $0	0%	$0	—$154	minus $0.00	0%
$51	—$198	minus $51.00	10%	$154	—$453	minus $154.00	10%
$198	—$653	minus $100.00	15%	$453	—$1,388	minus $253.67	15%
$653	—$1,533	minus $321.20	25%	$1,388	—$2,651	minus $707.40	25%
$1,533	—$3,202	minus $451.04	28%	$2,651	—$3,994	minus $915.64	28%
$3,202	—$6,916	minus $867.85	33%	$3,994	—$7,021	minus $1,382.06	33%
$6,916	—	minus $1,213.46	35%	$7,021	—	minus $1,704.29	35%
Table B(2)—BIWEEKLY PAYROLL PERIOD (Amount for each allowance claimed is $134.62)

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	—$102	minus $0.00	0%	$0	—$308	minus $0.00	0%
$102	—$396	minus $102.00	10%	$308	—$906	minus $308.00	10%
$396	—$1,306	minus $200.00	15%	$906	—$2,775	minus $507.33	15%
$1,306	—$3,066	minus $642.40	25%	$2,775	—$5,302	minus $1,414.40	25%
$3,066	—$6,404	minus $902.07	28%	$5,302	—$7,988	minus $1,830.93	28%
$6,404	—$13,833	minus $1,735.70	33%	$7,988	—$14,042	minus $2,763.82	33%
$13,833	—	minus $2,426.97	35%	$14,042	—	minus $3,408.29	35%
Table C(2)—SEMIMONTHLY PAYROLL PERIOD (Amount for each allowance claimed is $145.83)

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	—$110	minus $0.00	0%	$0	—$333	minus $0.00	0%
$110	—$429	minus $110.00	10%	$333	—$981	minus $333.00	10%
$429	—$1,415	minus $216.33	15%	$981	—$3,006	minus $549.00	15%
$1,415	—$3,322	minus $695.80	25%	$3,006	—$5,744	minus $1,531.80	25%
$3,322	—$6,938	minus $977.18	28%	$5,744	—$8,654	minus $1,983.11	28%
$6,938	—$14,985	minus $1,880.33	33%	$8,654	—$15,213	minus $2,993.85	33%
$14,985	—	minus $2,629.17	35%	$15,213	—	minus $3,692.09	35%
Table D(2)—MONTHLY PAYROLL PERIOD (Amount for each allowance claimed is $291.67)

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	—$221	minus $0.0	0%	$0	—$667	minus $0.00	0%
$221	—$858	minus $221.00	10%	$667	—$1,963	minus $667.00	10%
$858	—$2,830	minus $433.33	15%	$1,963	—$6,013	minus $1,099.00	15%
$2,830	—$6,644	minus $1,392.00	25%	$6,013	—$11,488	minus $3,064.60	25%
$6,644	—$13,875	minus $1,954.71	28%	$11,488	—$17,308	minus $3,967.11	28%
$13,875	—$29,971	minus $3,760.82	33%	$17,308	—$30,425	minus $5,988.45	33%
$29,971	—	minus $5,258.54	35%	$30,425	—	minus $7,384.83	35%
Table E(2)—DAILY or MISCELLANEOUS PAYROLL PERIOD (Amount for each allowance claimed per day for such period is $13.46)

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	—$10.20	minus $0.00	0%	$0.00	—$30.80	minus $0.00	0%
$10.20	—$39.60	minus $10.20	10%	$30.80	—$90.60	minus $30.80	10%
$39.60	—$130.60	minus $20.00	15%	$90.60	—$277.50	minus $50.73	15%
$130.60	—$306.60	minus $64.24	25%	$277.50	—$530.20	minus $141.42	25%
$306.60	—$640.40	minus $90.21	28%	$530.20	—$798.80	minus $183.06	28%
$640.40	—$1,383.30	minus $173.58	33%	$798.80	—$1,404.20	minus $276.35	33%
$1,383.30	—	minus $242.70	35%	$1,404.20	—	minus $340.80	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.

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taxmap/pubs/p15a-009.htm#TXMP6c2f7d93Formula Tables for Percentage Method Withholding (for Automated Payroll Systems)(p24)

taxmap/pubs/p15a-009.htm#TXMP355eaa48Nonresident alien employees.(p24)

taxmap/pubs/p15a-009.htm#TXMP26e075acRounding.(p24)

Alternative 1.—Tables for Percentage Method Withholding Computations

Alternative 2.—Tables for Percentage Method Withholding Computations

taxmap/pubs/p15a-009.htm#TXMP6c2f7d93
Formula Tables for Percentage Method Withholding (for Automated Payroll Systems)(p24)

taxmap/pubs/p15a-009.htm#TXMP355eaa48
Nonresident alien employees.(p24)

taxmap/pubs/p15a-009.htm#TXMP26e075ac
Rounding.(p24)