Payroll Services

How to Calculate Federal Withholding Tax Using the Percentage Tables

(For Wages Paid in 2014)

Several factors impact the calculation of your federal Income taxes.  Such items as marital status, number of withholding allowances (exemptions) and amount of semi-monthly gross earnings as well as reductions such as Public Employees Retirement Systems (PERS) or TIAA/CREF retirement contributions combine to determine the amount of federal income tax.  The following steps describe how to calculate your Federal income taxes:

  STEP 1:

Determine the value of your total withholding allowances (exemptions) as claimed on your current W-4 Form by multi­plying each allowance (exemption) by the semi-monthly amount of $164.60.

  STEP 2:

Subtract the amount of any salary reductions, such as PERS,TIAA/CREF, or health insurance premium from your total semi-monthly gross earnings.

  STEP 3: Subtract STEP 1 from STEP 2 to determine your taxable gross wages.
  STEP 4: Use the tables below to calculate the amount of Federal income taxes.  Be sure to use the appropriate table based upon your marital status (single or married) as marked on your current W-4 Form.
     

SEMI-MONTHLY PAYCYCLE

SINGLE person - including head of household:

If the amount of wages is:          The amount of income tax to withhold is:

Not over $94 . . . . . . . . . . 0

Over But not over of excess over
$  94 $ 472. . . . 10% $ 94
$ 472 $ 1,631. . . .$     37.80 plus 15% $ 472
$ 1,631 $ 3,817. . . .$    211.65 plus 25% $ 1,631
$ 3,817 $ 7,858. . . .$    758.15 plus 28% $ 3,817
$ 7,858 $16,973. . . $ 1,889.63 plus 33% $ 7,858
$ 16,973 $17,042. . . $ 4,897.58 plus 35% $16,973
$ 17,042 . . . . . . . . . . . . . . . . . . . . $4,921.73 plus 39.6% $17,042

 

MARRIED person

If the amount of wages is:                The amount of income tax to withhold is:

Not over $352 . . . . . . . . . . 0

Over But not over of excess over
$ 352 $ 1,108. . . . 10% $ 352
$ 1,108 $ 3,427. . . .$    75.60 plus 15% $ 1,108
$ 3,427 $ 6,554. . . .$   423.45 plus 25% $ 3,427
$ 6,554 $ 9,804. . . .$ 1,205.20 plus 28% $ 6,554
$ 9,804 $ 17,231. . . $ 2,115.20 plus 33% $ 9,804
$ 17,231 $ 19,419. . . $ 4,566.11 plus 35% $ 17,231
$ 19,419 . . . . . . . . . . . . . . . . . . . . $ 5,331.91 plus 39.6% $ 19,419
EXAMPLE: Monthly Salary: $4,200
Semi-monthly Salary: $2,100
Marital Status: Married
Withholding Allowances (Exemptions): 3
SRA (Reduction): $100
PERS II (Reduction): 4.92%
Health Insurance Premium $ 39.50

 

STEP 1: $164.60  
x         3  
$ 493.80   Value of withholding allowances
STEP 2: $ 2,100.00   Semi-monthly earnings
-   100.00   Less SRA
-   103.32   Less PERS II $2,100 X .0492
- 39.50   Less Health Insurance Premium
$ 1,857.18  
STEP 3: $ 1,857.18   STEP 2
-    493.80   Less STEP 1

$ 1,363.38

  Taxable Gross Wages
STEP 4: $ 1,363.38  
-  1,108.00  
$255.38 x 15% = $38.31 + $75.60  = $113.91 Federal Income Tax

"Reductions" are amounts which are not subject to federal income tax such as the Public Employees Retirement System (PERS), Health Insurance Premium, Teachers Retirement System, TIAA/CREF, Supplemental Retirement Annuity (SRA), State Deferred Compensations or Lincoln National. The following rates apply:

REDUCTION RATE
PERS I 6.00%
PERS II 4.92%
PERS III 5-15%
TRS I 6.00%
TRS II 4.96%
TRS III 5-15%
TIAA/CREF 5.00%, 7.50% or 10.00%
LEOFF II 8.41%

You should review your W-4 Withholding Certificate yearly to ensure that the proper amount of withholding is being deducted. You can change the amount of withholding by completing and submitting a new W-4 Withholding Certificate to Payroll Services. Your tax status (married or single) and the number of withholding allowances (exemptions) appear on your pay stub/earnings statement each pay period.

For Wages Paid in 2014

 
 
Payroll Services, PO Box 641024, Washington State University, Pullman WA 99164-1024, 509-335-9575, Contact Us
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