Federal Percentage Method Of Withholding 2006

A teleprocessing transaction named PYDC is available for computing federal, state and social security tax amounts and the tax impact of a tax sheltered annuity, ERA, etc. If you do not have access to PYDC or you need instructions, please call the Payroll office at 265-3085. To calculate the tax using this table:

  1. Obtain the employee’s gross wage for the payroll period.
  2. Determine the allowance amount from the table below according to the employee’s number of withholding allowances and frequency of payment.
  3. Subtract the allowance amount from the employee’s gross wages to determine the taxable wage.
  4. Determine the amount of federal tax from the appropriate percentage withholding table.

Biweekly Example

Monthly Example

1. Single employee’s taxable bi-weekly $1,450.00 1. Married employee's taxable monthly $5,200.00
2. Less amount for two personal allowances $253.84 2. Less amount for two personal allowances $550.00
3. Taxable wage (line 1 minus line 2) $1,196.16 3. Taxable wage (line 1 minus line 2) $4,650.00
4. Percentage withholding (withholding on $1,196.16 from Biweekly Single Table) 4.Percentage withholding (withholding on $4,650.00 from Monthly Married Table)
4A. Tax on minimum amount of 15% bracket ($385.00) $28.30 4A. Tax on minimum amount of 15% bracket ($1908.00) $124.10
4B. Taxable wage (from line 3) $1,196.16   4B. Taxable wage (from line 3) $4,650.00  
4C. Minus minimum amount of 15% bracket -385.00 4C. Minus minimum amount of 15% bracket

-1,908.00

4D. Amount over bracket minimum $811.16 4D. Amount over bracket miniumum

$2,742.00

4E. 15% of 4D   $121.67 4E. 15% of 4D   $411.30
4F. Biweekly withholding
(4A plus 4E)
  $149.97 4F. Monthly withholding
(4A plus 4E)
  $535.40

WITHHOLDING ALLOWANCE TABLE

Number of
Allowances Is
And wages are paid
Bi - Weekly Monthly Annually
The total amount of withholding allowances for the payroll period is
0 $0 $0 $0
1 126.92 275.00 3,300.00
2 253.84 550.00 6,600.00
3 380.76 825.00 9,900.00
4 507.68 1,100.00 13,200.00
5 634.60 1,375.00 16,500.00
6 761.52 1,650.00 19,800.00
7 888.44 1,925.00 23,100.00
8 1,015.36 2,200.00 26,400.00
9 1,142.28 2,475.00 29,700.00
10 1,269.20 2,750.00 33,000.00
11 or
More
Multiply the amount of one withholding allowance for the specific payroll period by the number of allowances claimed

TABLE FOR PERCENTAGE METHOD OF WITHHOLDING

Table 2 Biweekly Payroll Period
(a) SINGLE person (including head of household) (b) MARRIED person
If the amount of wages (after subtracting withholding allowances) is: The amount of income tax to withhold is: If the amount of wages (after subtracting withholding allowances) is: The amount of income tax to withhold is:
Over - But not over Of Excess Over Over - But not over Of Excess Over
Not over $102   $0 Not over $308   $0
$102 - $385 10% $102 $308 - $881 10% $308
$385 - $1,240 $28.30 plus 15% $385 $881 - $2,617 $57.30 plus 15% $881
$1,240 - $2,817 $156.65 plus 25% $1,240 $2,617 - $4,881 $317.70 plus 25% $2,617
$2,817 - $6,025 $550.80 plus 28% $2,817 $4,881 - $7,517 $883.70 plus 28% $4,881
$6,025 - $13,015 $1,449.04 plus 33% $6,025 $7,517 - $13,213 $1,621.78 plus 33% $7,517
$13,015 - $3,755.74 plus 35% $13,015 $13,213 - $3,501.46 plus 35% $13,213

 

Table 4 Monthly Payroll Period
(a) SINGLE person (including head of household)

(b) MARRIED person

If the amount of wages (after subtracting withholding allowances) is: The amount of income tax to withhold is: If the amount of wages (after subtracting withholding allowances) is: The amount of income tax to withhold is:

Over - But not over Of Excess Over Over - But not over Of Excess Over
Not over $221   $0 Not over $667   $0
$221 - $833

10% $221 $667 - $1,908 10% $667
$833 - $2,687 $61.20 plus 15% $833 $1,908 - $5,670 $124.10 plus 15% $1,908
$2,687 - $6,104 $339.30 plus 25% $2,687 $5,670 - $10,575 $688.40 plus 25% $5,670
$6,104 - $13,054 $1,193.55 plus 28% $6,104 $10,575 - $16,288 $1,914.65 plus 28% $10,575
$13,054 - $28,200 $3139.55 plus 33% $13,054 $16,288 - $28,629 $3,514.24 plus 33% $16,288
$28,200 - $8,137.73 plus 35% $28,200 $28,629 - $7,586.82 plus 35% $28,629

 

Table 7 Annual Payroll Period
(a) SINGLE person (including head of household) (b) MARRIED person
If the amount of wages (after subtracting withholding allowances) is: The amount of income tax to withhold is: If the amount of wages (after subtracting withholding allowances) is: The amount of income tax to withhold is:
Over - But not over Of Excess Over Over - But not over Of Excess Over
Not over $2,650   $0 Not over $8,000   $0
$2,650 - $10,000 10% $2,650 $8,000 - $22,900 10% $8,000
$10,000 - $32,240 $735.00 plus 15% $10,000 $22,900 - $68,040 $1,490.00 plus 15% $22,900
$32,240 - $73,250 $4,701.00 plus 25% $32,240 $68,040 - $126,900 $8,261.00 plus 25% $68,040
$73,250 - $156,650 $14,323.50 plus 28% $73,250 $126,900 - $195,450 $22,976.00 plus 28% $126,900
$156,650- $338,400 $37,675.50 plus 33% $156,650 $195,450 - $343,550 $42,170.00 plus 33% $195,450
$338,400 - $97,653.00 plus 35% $338,400 $343,550 - $91,043.00 plus 35% $343,550

File last updated: March 19, 2007
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