New federal withholding tax rates are in effect as of February 22, 2009 and will be used for all paychecks dated March 20, 2009 and later. The federal withholding allowance amount increases to $3,650.00.
Federal withholding tax is computed as follows:
| Computation Steps | Example: Single & One Allowance |
Example: Married & Two Allowances |
|---|---|---|
| 1. Biweekly gross salary less tax sheltered amounts | $1,000.00 | $1,000.00 |
| 2. Multiply by 26 to get the annual taxable wage | x26 | x26 |
| _________ | _________ | |
| $26,000.00 | $26,000.00 | |
| 3. Multiply the number of allowances claimed on Form W-4 (also shown on paychecks stubs) by $3650.00. | - $3650.00 | - $7300.00 |
| 4. Federal withholding tax base (FWTB) | $22,350.00 | $18,700.00 |
Using the federal withholding tax base (FWTB) determined in the table above, compute the federal withholding tax from one of the following tables.
| WAGES LESS WITHOLDING ALLOWANCE | INCOME TAX TO BE WITHHELD | |||
|---|---|---|---|---|
| OVER | BUT NOT OVER | OF EXCESS OVER | ||
| $0.00 | $7,180.00 | $0.00 | $0.00 | |
| $7,180.00 | $10,400.00 | $0.00 | PLUS 10% | $7,180.00 |
| $10,400.00 | $36,200.00 | $322.00 | PLUS 15% | $10,400.00 |
| $36,200.00 | $66,530.00 | $4,192.00 | PLUS 25% | $36,200.00 |
| $66,530.00 | $173,600.00 | $11,774.50 | PLUS 28% | $66,530.00 |
| $173,600.00 | $375,000.00 | $41,754.10 | PLUS 33% | $173,600.00 |
| $375,000.00 | $108,216.10 | PLUS 35% | $375,000.00 | |
Divide the result by 26 to obtain the amount of federal tax to be withheld from the paycheck each pay period.
| WAGES LESS WITHOLDING ALLOWANCE | INCOME TAX TO BE WITHHELD | |||
|---|---|---|---|---|
| OVER | BUT NOT OVER | OF EXCESS OVER | ||
| $0.00 | $15,750.00 | $0.00 | $0.00 | |
| $15,750.00 | $24,450.00 | $0.00 | PLUS 10% | $15,750.00 |
| $24,450.00 | $75,650.00 | $870.00 | PLUS 15% | $24,450.00 |
| $75,650.00 | $118,130.00 | $8,550.00 | PLUS 25% | $75,650.00 |
| $118,130.00 | $216,600.00 | $19,170.00 | PLUS 28% | $118,130.00 |
| $216,600.00 | $380,700.00 | $46,741.60 | PLUS 33% | $216,600.00 |
| $380,700.00 | $100,894.60 | PLUS 35% | $380,700.00 | |
Divide the result by 26 to obtain the amount of federal tax to be withheld from each paycheck each pay period.
Tax Shelter amounts include TSA retirement (Board of Regents Retirement Plan), KPERS deduction, voluntary TSA contribution, Kansas deferred compensation deduction, employee premiums for non-taxable group health insurance, KanElect flexible spending account deductions, and pre-tax parking.