Small Business Taxes & Management

Percentage Withholding Tables--2018

 

Small Business Taxes & Management--Copyright 2018, 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 2018--The employee withholding rate for social security is 6.2% for 2018. 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 2018 is 22% (37% on amounts over $1 million).

  5. Backup Withholding--The backup withholding rate for 2018 is 24%.

 

2018 Weekly Payroll Period

2018 Biweekly Payroll Period

2018 Semimonthly Payroll Period

2018 Monthly Payroll Period

2018 Daily Payroll Period

2018 Amount for One Withholding Allowance

Example

 

Weekly 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 $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%    $11,761

Biweekly 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%    $23,521

Semimonthly 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%    $25,481

Monthly 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%    $50,963

Daily 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  . . . . . . . .   $ 64.67 

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 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

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