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PrintIncome Tax Withholding Payment Tables for 2009: Percentage Method
There are several methods to figure income tax withholding, based on information you get from your employees on Form W-4, Employee's Withholding Allowance Certificate. This method is called the Percentage Method.
Under the percentage method, multiply one withholding allowance for your payroll period (see below) by the number of allowances the employee claims on his or her Form W-4. Then subtract that figure from the employee's wages and look up the resulting amount in the table for the appropriate payroll period and employee's marital status.
| Percentage Method: 2009 Amount for One Withholding Allowance | |
|---|---|
| Payroll Period | One Withholding Allowance |
| Weekly | $70.19 |
| Biweekly | $140.38 |
| Semimonthly | $152.08 |
| Monthly | $304.17 |
| Quarterly | $912.50 |
| Semiannually | $1,825.00 |
| Annually | $3,650.00 |
| Daily | $14.04 |
Example: An unmarried employee is paid $600 weekly. This employees has in effect a Form W-4 claiming two withholding allowances. Using the percentage method, figure the income tax to withhold as follows:
- Total wage payment = $800.00
- One allowance = $70.19
- Allowances on W-4 = 2
- 2 x $70.19 = $140.38
- Amount subject to withholding ($800.00 - $140.38 = $659.62)
- Tax to be withheld on $659.62 from Percentage Method of Withholding Table (for weekly payroll, single person category) = $75.14
(If you would like, you can also use the wage bracket method of figuring withholding.)
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Income Tax Withholding Payment Tables for 2009: Percentage Method
More information:
Payroll Taxes
