Small Business Taxes & Management--Copyright 2018, A/N Group, Inc.
Contents
Notes
If you have more than a few employees you should strongly consider using a software program or a payroll service.
2018 Weekly Payroll Period
2018 Semimonthly Payroll Period
2018 Amount for One Withholding Allowance
SINGLE person (including head of household) If the amount of wages The amount of income tax (after withholding allowances): to withhold is: Not over $71 $0 Over-- But not over-- of excess over-- $ 71 $254 10% $ 71 $254 $815 $18.30 plus 12% $254 $815 $1,658 $85.62 plus 22% $815 $1,658 $3,100 $271.08 plus 24% $1,658 $3,100 $3,917 $617.16 plus 32% $3,100 $3,917 $9,687 $878.60 plus 35% $3,917 $9,687 . . . $2,898.10 plus 37% $9,687 MARRIED person If the amount of wages The amount of income tax (after withholding allowances): to withhold is: Not over $222 $0 Over-- But not over-- of excess over-- $222 $588 10% $222 $588 $1,711 $36.60 plus 12% $588 $1,711 $3,395 $171.36 plus 22% $1,711 $3,395 $6,280 $541.84 plus 24% $3,395 $6,280 $7,914 $1,234.24 plus 32% $6,280 $7,914 $11,761 $1,757.12 plus 35% $7,914 $11,761 . . . $3,103.57 plus 37% $11,761Biweekly Payroll Period--2018
SINGLE person (including head of household) If the amount of wages The amount of income tax (after withholding allowances): to withhold is: Not over $142 $0 Over-- But not over-- of excess over-- $142 $509 10% $142 $509 $1,631 $36.70 plus 12% $509 $1,631 $3,315 $171.34 plus 22% $1,631 $3,315 $6,200 $541.82 plus 24% $3,315 $6,200 $7,835 $1,234.22 plus 32% $6,200 $7,835 $19,373 $1,757.42 plus 35% $7,835 $19,373 . . . $5,795.72 plus 37% $19,373 MARRIED person If the amount of wages The amount of income tax (after withholding allowances): to withhold is: Not over $444 $0 Over-- But not over-- of excess over-- $444 $1,177 10% $444 $1,177 $3,421 $73.30 plus 12% $1,177 $3,421 $6,790 $342.58 plus 22% $3,421 $6,790 $12,560 $1,083.76 plus 24% $6,790 $12,560 $15,829 $2,468.56 plus 32% $12.560 $15,829 $23,521 $3,514.64 plus 35% $15,829 $23,521 . . . $6,206.84 plus 37% $23,521Semimonthly Payroll Period--2018
SINGLE person (including head of household) If the amount of wages The amount of income tax (after withholding allowances): to withhold is: Not over $154 $0 Over-- But not over-- of excess over-- $154 $551 10% $154 $551 $1,767 $39.70 plus 12% $551 $1,767 $3,592 $185.62 plus 22% $1,767 $3,592 $6,717 $587.12 plus 24% $3,592 $6,717 $8,488 $1,337.12 plus 32% $6,717 $8,488 $20,988 $1,903.84 plus 35% $8,488 $20,988 . . . $6,278.84 plus 37% $20,988 MARRIED person If the amount of wages The amount of income tax (after withholding allowances): to withhold is: Not over $481 $0 Over-- But not over-- of excess over-- $481 $1,275 10% $481 $1,275 $3,706 $79.40 plus 12% $1,275 $3,706 $7,356 $371.12 plus 22% $3,706 $7,356 $13,606 $1,174.12 plus 24% $7,356 $13,606 $17,148 $2,674.12 plus 32% $13,606 $17,148 $25,481 $3,807.56 plus 35% $17,148 $25,481 . . . $6,724.11 plus 37% $25,481Monthly Payroll Period--2018
SINGLE person (including head of household) If the amount of wages The amount of income tax (after withholding allowances): to withhold is: Not over $308 $0 Over-- But not over-- of excess over-- $308 $1,102 10% $308 $1,102 $3,533 $79.40 plus 12% $1,102 $3,533 $7,183 $371.72 plus 22% $3,533 $7,183 $13,433 $1,174.12 plus 24% $7,183 $13,433 $16,975 $2,674.12 plus 32% $13,433 $16,975 $41,975 $3,807.56 plus 35% $16,975 $41,975 . . . $12,557.56 plus 37% $41,975 MARRIED person If the amount of wages The amount of income tax (after withholding allowances): to withhold is: Not over $963 $0 Over-- But not over-- of excess over-- $963 $2,550 10% $963 $2,550 $7,413 $158.70 plus 12% $2,550 $7,413 $14,713 $742.26 plus 22% $7,413 $14,713 $27,213 $2,348.26 plus 24% $14,713 $27,213 $34,296 $5,348.26 plus 32% $27,213 $34,296 $50,963 $7,614.82 plus 35% $34,296 $50,963 . . . $13,448.27 plus 37% $50,963Daily or Miscellaneous Payroll Period--2018
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 $14.20 $0 Over-- But not over-- of excess over-- $14.20 $50.90 10% $14.20 $50.90 $163.10 $3.67 plus 12% $50.90 $163.10 $331.50 $17.13 plus 22% $163.10 $331.50 $620.00 $54.18 plus 24% $331.50 $620.00 $783.50 $123.42 plus 32% $620.00 $783.50 $1,937.30 $175.74 plus 35% $783.50 $1,937.30 . . . $579.57 plus 37% $1,937.30 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 $44.40 $0 Over-- But not over-- of excess over-- $44.40 $117.70 10% $44.40 $117.70 $342.10 $7.33 plus 12% $117.70 $342.10 $679.00 $34.26 plus 22% $342.10 $679.00 $1,256.00 $108.38 plus 24% $679.00 $1,256.00 $1,582.90 $246.86 plus 32% $1,256.00 $1,582.90 $2,352.10 $351.47 plus 35% $1,582.90 $2,352.10 . . . $620.69 plus 37% $2,352.10
Amount for One Withholding Allowance--2018
Payroll Period One Withholding Allowance Weekly $ 79.80 Biweekly 159.60 Semimonthly 172.90 Monthly 345.80 Daily or miscellaneous 16.00
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 . . . . . $79.80 Allowances claimed on W-4 . . . . . . 2 Multiply line 2 by line 3 . . . . . . . . . . . $159.60 Amount subject to withholding (line 1 less line 4 . . . . . . . . . . . . . . . . . . . $640.40 Tax to be withheld on $640.40 . . . . . . . . $ 64.67Note. 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 2018 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 02/05/18