Small Business Taxes & Management

Percentage Withholding Tables--2016

 

Small Business Taxes & Management--Copyright 2016, A/N Group, Inc.

 

Contents

Notes

  1. Other Methods--There are several other ways to compute withholdings. IRS Publication 15, Circular E, Employer's Tax Guide contains wage bracket tables and detailed explanations. See also IRS Publication 15A, Employer's Supplemental Tax Guide, for alternative withholding methods and information on other situations. You can download these publications at the IRS website. For employment tax info get IRS Publication 15 Employer's Tax Guide.

    If you have more than a few employees you should strongly consider using a software program or a payroll service.

  2. Social Security and Medicare Tax for 2016--The employee withholding rate for social security is 6.2% for 2016. The Medicare Tax rate is 1.45%

  3. Additional Medicare Tax Withholding--In addition to the withholding Medicare tax at 1.45%, you must withhold a 0.9% Additional Medicare Tax from employee wages in excess of $200,000. Begin withholding in the pay period you pay wages in excess of $200,000 for the year. (There is no employer portion to this tax.)

  4. Supplemental Wages--The supplemental wage flat withholding rate for 2016 is 25%.

  5. Backup Withholding--The backup withholding rate for 2016 is 28%.

 

2016 Weekly Payroll Period

2016 Biweekly Payroll Period

2016 Semimonthly Payroll Period

2016 Monthly Payroll Period

2016 Daily Payroll Period

2016 Amount for One Withholding Allowance

Example

 

Weekly Payroll Period--2016

SINGLE person (including head of household)

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

Not over $43                     $0

Over--       But not over--                    of excess over--

   $ 43                $222       10%                      $ 43
   $222                $767       $17.90 plus 15%          $222
   $767              $1,796       $99.65 plus 25%          $767
 $1,796              $3,700       $356.90 plus 28%       $1,796
 $3,700              $7,992       $890.02 plus 33%       $3,700
 $7,992              $8,025       $2,306.38 plus 35%     $7,992 
 $8,025               . . .       $2,317.93 plus 39.6%   $8,025

MARRIED person

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

Not over $164                     $0

Over--       But not over--                    of excess over--

   $164                $521       10%                      $164
   $521              $1,613       $35.70 plus 15%          $521
 $1,613              $3,086       $199.50 plus 25%       $1,613
 $3,086              $4,615       $567.75 plus 28%       $3,086
 $4,615              $8,113       $995.87 plus 33%       $4,615
 $8,113              $9,144       $2,150.21 plus 35%     $8,113
 $9,144               . . .       $2,511.06 plus 39.6%   $9,144
Biweekly Payroll Period--2016

SINGLE person (including head of household)

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

Not over $87                    $0

Over--       But not over--                    of excess over--

   $ 87                $443       10%                      $ 87
   $443              $1,535       $35.60 plus 15%          $443
 $1,535              $3,592       $199.40 plus 25%       $1,535
 $3,592              $7,400       $713.65 plus 28%       $3,592
 $7,400             $15,985       $1,779.89 plus 33%     $7,400
$15,985             $16,050       $4,612.94 plus 35%    $15,985
$16,050               . . .       $4,635.69 plus 39.6%  $16,050 


MARRIED person

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

Not over $329                   $0

Over--       But not over--                    of excess over--

   $329              $1,042       10%                      $329
 $1,042              $3,225       $71.30 plus 15%        $1,042
 $3,225              $6,171       $398.75 plus 25%       $3,225
 $6,171              $9,231       $1,135.25 plus 28%     $6,171
 $9,231             $16,227       $1,992.05 plus 33%     $9,231
$16,227             $18,288       $4,300.73 plus 35%    $16,227
$18,288               . . .       $5,022.08 plus 39.6%  $18,288
Semimonthly Payroll Period--2016

SINGLE person (including head of household)

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

Not over $94                     $0

Over--       But not over--                    of excess over--

    $94                $480       10%                       $94
   $480              $1,663       $38.60 plus 15%          $480
 $1,663              $3,892       $216.05 plus 25%       $1,663
 $3,892              $8,017       $773.30 plus 28%       $3,892
 $8,017             $17,317       $1,928.30 plus 33%     $8,017
$17,317             $17,388       $4,997.30 plus 35%    $17,317
$17,388               . . .       $5,022.15 plus 39.6%  $17,388


MARRIED person

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

Not over $356                     $0

Over--       But not over--                    of excess over--

   $356              $1,129       10%                      $356
 $1,129              $3,494       $77.30 plus 15%        $1,129
 $3,494              $6,685       $432.05 plus 25%       $3,494
 $6,685             $10,000       $1,229.80 plus 28%     $6,685
$10,000             $17,579       $2,158.00 plus 33%    $10,000
$17,579             $19,813       $4,659.07 plus 35%    $17,579
$19,813               . . .       $5,440.97 plus 39.6%  $19,813
Monthly Payroll Period--2016

SINGLE person (including head of household)

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

Not over $188                     $0

Over--       But not over--                    of excess over--

   $188                $960       10%                      $188
   $960              $3,325       $77.20 plus 15%          $960
 $3,325              $7,783       $431.95 plus 25%       $3,325
 $7,783             $16,033       $1,546.45 plus 28%     $7,783
$16,033             $34,633       $3,856.45 plus 33%    $16,033
$34,633             $34,775       $9,994.45 plus 35%    $34,633
$34,775               . . .       $10,044.15 plus 39.6% $34,775

 
MARRIED person

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

Not over $713                   $0

Over--       But not over--                     of excess over--

   $713              $2,258       10%                       $713
 $2,258              $6,988       $154.50 plus 15%        $2,258
 $6,988             $13,371       $864.00 plus 25%        $6,988
$13,371             $20,000       $2,459.75 plus 28%     $13,371
$20,000             $35,158       $4,315.87 plus 33%     $20,000
$35,158             $39,625       $9,318.01 plus 35%     $35,158
$39,625               . . .       $10,881.46 plus 39.6%  $39,625
Daily or Miscellaneous Payroll Period--2016

SINGLE person (including head of household)

If the amount of wages            The amount of income tax 
(after withholding allowances)    to withhold is:
divided by the number of days in
the payroll period is:

Not over $8.70                  $0

Over--       But not over--                    of excess over--

    $8.70            $44.30       10%                     $8.70
   $44.30           $153.50       $3.56 plus 15%         $44.30
  $153.50           $359.20       $19.94 plus 25%       $153.50
  $359.20           $740.00       $71.37 plus 28%       $359.20
  $740.00         $1,598.50       $177.99 plus 33%      $740.00
$1,598.50         $1,605.00       $461.30 plus 35%    $1,598.50
$1,605.00             . . .       $463.58 plus 39.6%  $1,605.00
 
MARRIED person

If the amount of wages            The amount of income tax 
(after withholding allowances)    to withhold is:
divided by the number of days in
the payroll period is:


Not over $32.90                   $0

Over--       But not over--                    of excess over--

   $32.90           $104.20       10%                    $32.90
  $104.20           $322.50       $7.13 plus 15%        $104.20
  $322.50           $617.10       $39.88 plus 25%       $322.50
  $617.10           $923.10       $113.53 plus 28%      $617.10
  $923.10         $1,622.70       $199.21 plus 33%      $923.10
$1,622.70         $1,828.80       $430.08 plus 35%    $1,622.70
$1,828.80             . . .       $502.22 plus 39.6%  $1,828.80
 

Amount for One Withholding Allowance--2016

Payroll Period           One Withholding Allowance

Weekly                   $   77.90
Biweekly                    155.80
Semimonthly                 168.80
Monthly                     337.50
Daily or miscellaneous       15.60
 

Example--An unmarried employee is paid $800 weekly. The employee has in effect a Form W-4 claiming two withholding allowances. Using the percentage method, you would figure the income tax to withhold as follows:

Total wage payment . . . . . . . . . . . . . . . $800.00
Reduction for one allowance . . . . . $77.90
Allowances claimed on W-4 . . . . . .      2
Multiply line 2 by line 3 . . . . . . . . . . .  $155.80
Amount subject to withholding (line 1 less
  line 4 . . . . . . . . . . . . . . . . . . .   $644.20
Tax to be withheld on $644.20  . . . . . . . .   $ 81.23
Note. When using the percentage tables, 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 by dropping amounts under 50 cents and increasing amounts from 50 to 99 cents to the next higher dollar. For example, $2.30 becomes $2 and $2.80 becomes $3.  

 

Copyright 2016 by A/N Group, Inc. This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is distributed with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional should be sought. Articles in this publication are not intended to be used, and cannot be used, for the purpose of avoiding accuracy-related penalties that may be imposed on a taxpayer. The information is not necessarily a complete summary of all materials on the subject. Copyright is not claimed on material from U.S. Government sources.--ISSN 1089-1536

--Last update 01/06/16

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