Table of Contents
- Calendar
- Reminders
- Electronic Filing and Payment
- Credit and Debit Card Payments
- Forms in Spanish
- Hiring New Employees
- Paying Wages, Pensions, or Annuities
- Information Returns
- Nonpayroll Income Tax Withholding
- Recordkeeping
- Change of Address
- Private Delivery Services
- Telephone Help
- Ordering Employer Tax Products
- Contacting Your Taxpayer Advocate
- Filing Addresses
- Photographs of Missing Children
- Introduction
- 1. Employer Identification Number (EIN)
- 2. Who Are Employees?
- 3. Family Employees
- 4. Employee's Social Security Number (SSN)
- 5. Wages and Other Compensation
- Accountable plan.
- Nonaccountable plan.
- Per diem or other fixed allowance.
- 50% test.
- Health Savings Accounts and medical savings accounts.
- Nontaxable fringe benefits.
- When fringe benefits are treated as paid.
- Valuation of fringe benefits.
- Withholding on fringe benefits.
- Depositing taxes on fringe benefits.
- 6. Tips
- 7. Supplemental Wages
- 8. Payroll Period
- 9. Withholding From Employees' Wages
- 10. Advance Earned Income Credit (EIC) Payment
- 11. Depositing Taxes
- 12. Filing Form 941 or Form 944
- 13. Reporting Corrections to Form 941 or Form 944
- 14. Federal Unemployment (FUTA) Tax
- 16. How To Use the Income Tax Withholding and Advance Earned Income Credit (EIC) Payment Tables
The following is a list of important dates. Also see Publication 509, Tax Calendars.

www.socialsecurity.gov/employer. For information on filing information returns electronically with the IRS, see Publication 1220, Specifications for Filing Forms 1098, 1099, 5498, and W-2G Electronically, and Publication 1239, Specifications for Filing Form 8027, Employer's Annual Information Return of Tip Income and Allocated Tips Electronically.
Now, more than ever before, businesses can enjoy the benefits of filing and paying their federal taxes electronically. Whether you rely on a tax professional or handle your own taxes, the IRS offers you convenient programs to make filing and payment easier.
Spend less time and worry on taxes and more time running your business. Use e-file and the Electronic Federal Tax Payment System (EFTPS) to your benefit.
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For e-file, visit www.irs.gov for additional information.
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For EFTPS, visit www.eftps.gov or call EFTPS Customer Service at 1-800-555-4477.
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For electronic filing of Forms W-2,
visit www.socialsecurity.gov/employer.
You can use your American Express® Card, Discover® Card, MasterCard® card, Visa® card, or debit card to pay the balance due shown on Form 940, Form 941, Form 943, Form 944, and Form 945. To pay by credit or debit card, call toll-free or visit the website of any service provider listed below and follow the instructions. A convenience fee will be charged by the service provider. Fees vary between the providers. You will be told what the fee is during the transaction and you will have the option to either continue or cancel the transaction. You can also find out what the fee will be by calling the provider's toll-free automated customer service number or by visiting the provider's website shown below. You may not use a credit or debit card to pay taxes that are required to be deposited.
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RBS WorldPay, Inc.
1-888-9-PAY-TAXTM (1-888-972-9829)
1-877-517-4881 (Customer Service)
www.payUSAtax.com -
Official Payments Corporation
1-888-UPAY-TAXTM (1-888-872-9829)
1-877-754-4420 (Customer Service)
www.officialpayments.com -
Link2Gov Corporation
1-888-PAY-1040TM (1-888-729-1040)
1-888-658-5465 (Customer Service)
www.PAY1040.com
You can provide Formulario W-4(SP), Certificado de Exención de Retenciones del Empleado, in place of Form W-4, Employee's Withholding Allowance Certificate, to your Spanish-speaking employees. For more information, see Publicación 17(SP), El Impuesto Federal sobre los Ingresos (Para Personas Físicas). You can also provide Formulario W-5(SP), Certificado del Pago por Adelantado del Crédito por Ingreso del Trabajo, in place of Form W-5, Earned Income Credit Advance Payment Certificate. For nonemployees, Formulario W-9(SP), Solicitud y Certificación del Número de Identificación del Contribuyente, may be used in place of Form W-9, Request for Taxpayer Identification Number and Certification.
www.uscis.gov for further information.
lines 16 and 17 of 2008 Form 941 (lines 18 and 19 of 2009 Form 941)), you must continue to file a Form 941 or Form 944 even for periods during which you paid no wages. IRS encourages you to file your “Zero Wage” Forms 941 or 944 electronically using IRS e-file at www.irs.gov/efile.
| Employer Responsibilities: The following list provides a brief summary of your basic responsibilities. Because the individual circumstances for each employer can vary greatly, responsibilities for withholding, depositing, and reporting employment taxes can differ. Each item in this list has a page reference to a more detailed discussion in this publication. | |||||||
| New Employees: | Page | Quarterly (By April 30, July 31, October 31, and January 31): |
Page | ||||
| □ | Verify work eligibility of new employees | 3 | □ | Deposit FUTA tax if undeposited amount | |||
| □ | Record employees' names and SSNs from | is over $500 | 31 | ||||
| Social security cards | 10 | □ | File Form 941 (pay tax with return if not | ||||
| □ | Ask employees for Form W-4 | 15 | required to deposit) | 26 | |||
| Each Payday: | Annually (see Calendar for due dates): |
||||||
| □ | Withhold federal income tax based on each | □ | Remind employees to submit a new Form W-4 | ||||
| employee's Form W-4 | 15 | if they need to change their withholding | 15 | ||||
| □ | Withhold employee's share of social security | □ | Ask for a new Form W-4 from employees | ||||
| and Medicare taxes | 18 | claiming exemption from income tax | |||||
| □ | Include advance earned income credit payment | withholding | 16 | ||||
| in paycheck if employee requested it on | □ | Reconcile Forms 941 (or Form 944) with Forms | |||||
| Form W-5 | 19 | W-2 and W-3 | 27 | ||||
| □ | Deposit: | □ | Furnish each employee a Form W-2 | 2 | |||
| • Withheld income tax | □ | File Copy A of Forms W-2 and the transmittal | |||||
| • Withheld and employer social security taxes | Form W-3 with the SSA | 2 | |||||
| • Withheld and employer Medicare taxes | 20 | □ | Furnish each other payee a Form 1099 (for | ||||
| Note: Due date of deposit generally depends on | example, Form 1099-MISC, Miscellaneous Income) | 2 | |||||
| your deposit schedule (monthly or semiweekly) | □ | File Forms 1099 and the transmittal Form | |||||
| Annually (By January 31) | 1096 | 2 | |||||
| □ | File Form 944 if required (pay tax with return if | □ | File Form 940 | 31 | |||
| not required to deposit) | 26 | File Form 945 for any nonpayroll income tax withholding | 2 | ||||
You may be required to file information returns to report certain types of payments made during the year. For example, you must file Form 1099-MISC, Miscellaneous Income, to report payments of $600 or more to persons not treated as employees (for example, independent contractors) for services performed for your trade or business. For details about filing Forms 1099 and for information about required electronic filing, see the 2010 General Instructions for Certain Information Returns (Forms 1098, 1099, 3921, 3922, 5498, and W-2G) for general information and the separate, specific instructions for each information return you file (for example, 2010 Instructions for Form 1099-MISC). Do not use Forms 1099 to report wages and other compensation you paid to employees; report these on Form W-2. See the Instructions for Forms W-2 and W-3 for details about filing Form W-2 and for information about required electronic filing. If you file 250 or more Forms 1099, you must file them electronically. If you file 250 or more Forms W-2, you must file them electronically. SSA will not accept Forms W-2 and W-3 filed on magnetic media.
Nonpayroll federal income tax withholding must be reported on Form 945, Annual Return of Withheld Federal Income Tax. Form 945 is an annual tax return and the return for 2009 is due February 1, 2010. Separate deposits are required for payroll (Form 941 or Form 944) and nonpayroll (Form 945) withholding. Nonpayroll items include:
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Pensions (including distributions from governmental section 457(b) plans), annuities, and IRAs.
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Military retirement.
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Gambling winnings.
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Indian gaming profits.
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Certain government payments subject to voluntary withholding.
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Payments subject to backup withholding.
For details on depositing and reporting nonpayroll income tax withholding, see the Instructions for Form 945.
All income tax withholding reported on Forms 1099 or Form W-2G must also be reported on Form 945. All income tax withholding reported on Form W-2 must be reported on Form 941, Form 943, Form 944, or Schedule H (Form 1040).

Keep all records of employment taxes for at least 4 years. These should be available for IRS review. Your records should include:
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Your employer identification number (EIN),
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Amounts and dates of all wage, annuity, and pension payments,
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Amounts of tips reported to you by your employees,
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Records of allocated tips,
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The fair market value of in-kind wages paid,
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Names, addresses, social security numbers, and occupations of employees and recipients,
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Any employee copies of Forms W-2 and W-2c returned to you as undeliverable,
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Dates of employment for each employee,
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Periods for which employees and recipients were paid while absent due to sickness or injury and the amount and weekly rate of payments you or third-party payers made to them,
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Copies of employees' and recipients' income tax withholding allowance certificates (Forms W-4, W-4P, W-4(SP), W-4S, and W-4V),
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Copies of employees' Earned Income Credit Advance Payment Certificates (Forms W-5 and W-5(SP)),
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Dates and amounts of tax deposits you made and acknowledgment numbers for deposits made by EFTPS,
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Copies of returns filed, including 941TeleFile Tax Records (discontinued after June 2005) and confirmation numbers, and
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Records of fringe benefits and expense reimbursements provided to your employees, including substantiation.
To notify the IRS of a new business mailing address or business location, file Form 8822, Change of Address. Do not mail Form 8822 with your employment tax return. For information on how to change your address for deposit coupons, see Making deposits with FTD coupons in section 11.
You can use certain private delivery services designated by the IRS to mail tax returns and payments. The list includes only the following:
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DHL Express (DHL): DHL Same Day Service.
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Federal Express (FedEx): FedEx Priority Overnight, FedEx Standard Overnight, FedEx 2Day, FedEx International Priority, and FedEx International First.
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United Parcel Service (UPS): UPS Next Day Air, UPS Next Day Air Saver, UPS 2nd Day Air, UPS 2nd Day Air A.M., UPS Worldwide Express Plus, and UPS Worldwide Express.
Your private delivery service can tell you how to get written proof of the mailing date.

Topic 123.
Teletax Topics
| Topic No. |
Subject (These topics are available in Spanish) |
|---|---|
| 752 | Form W-2—Where, When, and How to File |
| (Dónde, Cuándo y Cómo Presentar El La Formulario W-2) | |
| 753 | Form W-4—Employee's Withholding Allowance Certificate |
| (Formulario W-4(SP)—Certificado de Excensión de Retenciones del Empleado) | |
| 754 | Form W-5—Earned Income Credit Advance Payment Certificate |
| (Formulario W-5(SP)—Certificado del Pago por Adelantado del Crédito por Ingreso del Trabajo) | |
| 755 | Employer Identification Number (EIN)—How to Apply |
| (Como Solicitar Un Número de Identificación Patronal (EIN)) | |
| 756 | Employment Taxes for Household Employees |
| (Impuestos Patronales para Empleados Domésticos) | |
| 757 | Form 941 and Form 944—Deposit Requirements |
| (Formulario 941 and Formulario 944—Requisitos de Depósito) | |
| 758 | Form 941—Employer's QUARTERLY Federal Tax Return and Form 944—Employer's ANNUAL Federal Tax Return |
| (Formulario 941-PR—Planilla para la Declaración Federal TRIMESTRAL del Patrono) (Formulario 944-PR-Planilla para la Declaración Federal ANUAL del Patrono) | |
| 759 | Form 940—Deposit Requirements |
| (Formulario 940—Requisitos de Depósito) | |
760 |
Form 940—Employer's Annual Federal Unemployment (FUTA) Tax Return |
| (Formulario 940-PR—Planilla para la Declaración Federal Anual del Patrono de la Contibución Federal para el Desempleo) | |
| 761 | Tips—Withholding and Reporting |
| (Propinas—Declaración y Retención) | |
| 762 | Independent Contractor vs. Employee |
| (Contratista Independiente vs. Empleado) |
You can order employer tax products and information returns online at www.irs.gov/businesses. To order 2009 and 2010 forms, select “Online Ordering for Information Returns and Employer Returns.” You may also order employer tax products and information returns by calling 1-800-829-3676.
Instead of ordering paper Forms W-2 and W-3, consider filing them electronically using the Social Security Administration's
(SSA) free e-file service. Visit SSA's Employer W-2 Filing Instructions & Information website at
www.socialsecurity.gov/employer, select “Electronically File Your W-2s,” and provide registration information. You will be able to create and file “fill-in” versions of Forms W-2 with SSA and can print out completed copies of Forms W-2 for filing with state and local governments,
for distribution to your employees, and for your records. Form W-3 will be created for you based on your Forms W-2.
The Taxpayer Advocate Service (TAS) is an independent organization within the IRS whose employees assist taxpayers who are experiencing economic harm, who are seeking help in resolving tax problems that have not been resolved through normal channels, or who believe an IRS system or procedure is not working as it should.
You can contact TAS by calling the TAS toll-free case intake line at 1-877-777-4778 or TTY/TDD 1-800-829-4059 to see if you are eligible for assistance. You can also call or write to your local taxpayer advocate, whose phone number and address are listed in your local telephone directory and in Publication 1546, Taxpayer Advocate Service – Your Voice at the IRS. You can file Form 911, Request for Taxpayer Advocate Service Assistance (And Application for Taxpayer Assistance Order), or ask an IRS employee to complete it on your behalf. For more information, go to www.irs.gov/advocate.
Generally, your filing address for Forms 940, 941, 943, 944, 945, and CT-1 depends on the location of your residence or principal
place of business and whether or not you included a payment with your return. There are separate filing addresses for these
returns if you are a tax-exempt organization or government entity. If you are located in the United States and do not include
a payment with your return, you should file at either the Cincinnati or Ogden Service Centers. See the separate instructions
for Forms 940, 941, 943, 944, 945, or CT-1 for the filing addresses or “Where To File” on the IRS website at
www.irs.gov/business.
The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child.
This publication explains your tax responsibilities as an employer. It explains the requirements for withholding, depositing, reporting, paying, and correcting employment taxes. It explains the forms you must give to your employees, those your employees must give to you, and those you must send to the IRS and SSA. This guide also has tax tables you need to figure the taxes to withhold from each employee for 2010. References to “income tax” in this guide apply only to “federal” income tax. Contact your state or local tax department to determine if their rules are different.
Additional employment tax information is available in Publication 15-A, Employer's Supplemental Tax Guide. Publication 15-A includes specialized information supplementing the basic employment tax information provided in this publication. Publication 15-B, Employer's Tax Guide to Fringe Benefits, contains information about the employment tax treatment and valuation of various types of noncash compensation.
Most employers must withhold (except FUTA), deposit, report, and pay the following employment taxes.
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Income tax.
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Social security tax.
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Medicare tax.
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Federal unemployment tax (FUTA).
There are exceptions to these requirements. See section 15, Special Rules for Various Types of Services and Payments . Railroad retirement taxes are explained in the Instructions for Form CT-1.
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Information on the receipt of the assistance eligible individuals' 35% share of the premium including dates and amounts.
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In the case of an insurance plan, a copy of invoice or other supporting statement from the insurance carrier and proof of timely payment of the full premium to the insurance carrier required under COBRA.
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In the case of a self-insured plan, proof of the premium amount and proof of the coverage provided to the assistance eligible individuals.
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Attestation of involuntary termination, including the date of the involuntary termination for each covered employee whose involuntary termination is the basis for eligibility for the subsidy.
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Proof of each assistance eligible individual's eligibility for COBRA coverage and the election of COBRA coverage.
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A record of the SSNs of all covered employees, the amount of the subsidy reimbursed with respect to each covered employee, and whether the subsidy was for one individual or two or more individuals.
www.irs.gov and enter keywords COBRA Health Insurance Continuation Premium Subsidy.
Internal Revenue Service
Tax Products Coordinating Committee
SE:W:CAR:MP:T:T:SP
1111 Constitution Ave. NW, IR-6526
Washington, DC 20224
If you are required to report employment taxes or give tax statements to employees or annuitants, you need an employer identification number (EIN).
The EIN is a 9-digit number the IRS issues. The digits are arranged as follows: 00-0000000. It is used to identify the tax accounts of employers and certain others who have no employees. Use your EIN on all of the items you send to the IRS and SSA. For more information, get Publication 1635, Understanding Your EIN.
If you do not have an EIN, you may apply for one online. Go to the IRS website at www.irs.gov and click on the Apply for an Employer Identification Number (EIN) Online link. You may also apply for an EIN by calling 1-800-829-4933, or you can fax or mail Form SS-4 to the IRS. Do not use a social security number (SSN) in place of an EIN.
You should have only one EIN. If you have more than one and are not sure which one to use, call 1-800-829-4933 (TTY/TDD users can call 1-800-829-4059). Give the numbers you have, the name and address to which each was assigned, and the address of your main place of business. The IRS will tell you which number to use.
If you took over another employer's business (see Successor employer in section 9), do not use that employer's EIN. If you have applied for an EIN but do not have your EIN by the time a return is due, write “Applied For” and the date you applied for it in the space shown for the number. See Depositing without an EIN in section 11 if you must make a tax deposit and you do not have an EIN.
Generally, employees are defined either under common law or under statutes for certain situations. See Publication 15-A for details on statutory employees and nonemployees.
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An agent (or commission) driver who delivers food, beverages (other than milk), laundry, or dry cleaning for someone else.
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A full-time life insurance salesperson who sells primarily for one company.
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A homeworker who works by guidelines of the person for whom the work is done, with materials furnished by and returned to that person or to someone that person designates.
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A traveling or city salesperson (other than an agent-driver or commission-driver) who works full time (except for sideline sales activities) for one firm or person getting orders from customers. The orders must be for items for resale or use as supplies in the customer's business. The customers must be retailers, wholesalers, contractors, or operators of hotels, restaurants, or other businesses dealing with food or lodging.
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For social security taxes; employer rate of 6.2% plus 20% of the employee rate of 6.2%, for a total rate of 7.44% of wages.
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For Medicare taxes; employer rate of 1.45% plus 20% of the employee rate of 1.45%, for a total rate of 1.74% of wages.
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For income tax withholding, the rate is 1.5% of wages.
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For social security taxes; employer rate of 6.2% plus 40% of the employee rate of 6.2%, for a total rate of 8.68% of wages.
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For Medicare taxes; employer rate of 1.45% plus 40% of the employee rate of 1.45%, for a total rate of 2.03% of wages.
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For income tax withholding, the rate is 3.0% of wages.
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A corporation, even if it is controlled by the child's parent or the individual's spouse,
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A partnership, even if the child's parent is a partner, unless each partner is a parent of the child,
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A partnership, even if the individual's spouse is a partner, or
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An estate, even if it is the estate of a deceased parent.
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The parent cares for a child who lives with the parent's child and the child is under age 18 or requires adult supervision for at least 4 continuous weeks in a calendar quarter due to a mental or physical condition and
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The parent's son or daughter is a widow or widower, divorced, or living with a spouse who, because of a physical or mental condition that lasts at least 4 continuous weeks, cannot care for the child during such period.
You are required to get each employee's name and SSN and to enter them on Form W-2. This requirement also applies to resident and nonresident alien employees. You should ask your employee to show you his or her social security card. The employee may show the card if it is available. You may, but are not required to, photocopy the social security card if the employee provides it. If you do not provide the correct employee name and SSN on Form W-2, you may owe a penalty unless you have reasonable cause. See Publication 1586, Reasonable Cause Regulations and Requirements for Missing and Incorrect Name/TINs, for information on the requirement to solicit the employee's SSN.
www.socialsecurity.gov/employer. Advise your employee to correct the SSN on his or her original Form W-2.
If the Social Security Administration issues the employee a replacement card after a name change, or a new card with a different
social security number after a change in alien work status, file a Form W-2c to correct the name/SSN reported for the most
recently filed Form W-2. It is not necessary to correct other years if the previous name and number were used for years before
the most recent
Form W-2.

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Internet. Verify up to 10 names and numbers (per screen) online using the Social Security Number Verification Service (SSNVS) and receive immediate results, or upload batch files of up to 250,000 names and numbers and usually receive results the next business day. Visit www.ssa.gov/bso/bsowelcome and click on the Verify SSNs Online link.
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Telephone. Verify up to ten names and numbers with Telephone Number Employer Verification (TNEV) by calling 1-800-772-6270 or 1-800-772-1213.
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Paper. Verify up to 300 names and numbers by submitting a paper request. For information, see Appendix A in the SSNVS handbook at www.socialsecurity.gov/employer/ssnvshandbk/appendix.
www.ssa.gov/employer and click on the Business Services Online link. Follow the registration instructions to obtain a user Identification (ID) and password. You will need to provide the following information about yourself and your company:
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Name,
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SSN,
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Date of birth,
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Type of employer,
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Employer identification number (EIN),
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Company name, address, and telephone number and
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Email address.
Wages subject to federal employment taxes generally include all pay you give to an employee for services performed. The pay may be in cash or in other forms. It includes salaries, vacation allowances, bonuses, commissions, and fringe benefits. It does not matter how you measure or make the payments. Amounts an employer pays as a bonus for signing or ratifying a contract in connection with the establishment of an employer-employee relationship and an amount paid to an employee for cancellation of an employment contract and relinquishment of contract rights are wages subject to social security, Medicare, and federal unemployment taxes and income tax withholding. Also, compensation paid to a former employee for services performed while still employed is wages subject to employment taxes.
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Accident and health benefits,
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Achievement awards,
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Adoption assistance,
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Athletic facilities,
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De minimis (minimal) benefits,
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Dependent care assistance,
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Educational assistance,
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Employee discounts,
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Employee stock options,
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Group-term life insurance coverage,
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Health Savings Accounts,
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Lodging on your business premises,
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Meals,
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Moving expense reimbursements,
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No-additional-cost services,
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Retirement planning services,
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Transportation (commuting) benefits,
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Volunteer firefighter and emergency medical responder benefits,
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Tuition reduction, and
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Working condition benefits.
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They must have paid or incurred deductible expenses while performing services as your employees. The reimbursement or advance must be paid for the expense and must not be an amount that would have otherwise been paid by the employee.
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They must substantiate these expenses to you within a reasonable period of time.
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They must return any amounts in excess of substantiated expenses within a reasonable period of time.
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Your employee is not required to or does not substantiate timely those expenses to you with receipts or other documentation,
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You advance an amount to your employee for business expenses and your employee is not required to or does not return timely any amount he or she does not use for business expenses, or
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You advance or pay an amount to your employee regardless of whether you reasonably expect the employee to have business expenses related to your business.
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You pay an amount as a reimbursement you would have otherwise paid as wages.
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Services provided to your employees at no additional cost to you,
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Qualified employee discounts,
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Working condition fringes that are property or services the employee could deduct as a business expense if he or she had paid for it. Examples include a company car for business use and subscriptions to business magazines,
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Certain minimal value fringes (including an occasional cab ride when an employee must work overtime, local transportation benefits provided because of unsafe conditions and unusual circumstances, and meals you provide at eating places you run for your employees if the meals are not furnished at below cost),
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Qualified transportation fringes subject to specified conditions and dollar limitations (including transportation in a commuter highway vehicle, any transit pass, and qualified parking),
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Qualified moving expense reimbursement. See Moving expenses , on page 12 for details,
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The use of on-premises athletic facilities, if substantially all of the use is by employees, their spouses, and their dependent children, and
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Qualified tuition reduction an educational organization provides to its employees for education. For more information, see Publication 970, Tax Benefits for Education.
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No-additional-cost services (item 1 above).
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Qualified employee discounts (item 2 above).
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Meals provided at an employer operated eating facility (included in item 4 above).
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Reduced tuition for education (item 8 above).
For more information, including the definition of a highly compensated employee, see Publication 15-B.
Tips your employee receives from customers are generally subject to withholding. Your employee must report cash tips to you by the 10th of the month after the month the tips are received. The report should include tips you paid over to the employee for charge customers and tips the employee received directly from customers. No report is required for months when tips are less than $20. Your employee reports the tips on Form 4070, Employee's Report of Tips to Employer, or on a similar statement. The statement must be signed by the employee and must show the following:
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The employee's name, address, and SSN.
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Your name and address.
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The month or period the report covers.
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The total of tips received during the month or period.
Both Forms 4070 and 4070-A, Employee's Daily Record of Tips, are included in Publication 1244, Employee's Daily Record of Tips.

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Withhold on regular wages and other compensation.
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Withhold social security and Medicare taxes on tips.
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Withhold income tax on tips.
Supplemental wages are compensation paid in addition to an employee's regular wages. They include, but are not limited to,
bonuses, commissions, overtime pay, payments for accumulated sick leave, severance pay, awards, prizes, back pay, retroactive
pay increases, and payments for nondeductible moving expenses. Other payments subject to the supplemental wage rules include
taxable fringe benefits and expense allowances paid under a nonaccountable plan. How you withhold on supplemental wages depends
on whether the supplemental payment is identified as a separate payment from regular wages. See Regulations section 31.3402(g)-1
for additional guidance for wages paid after January 1, 2007. Also see Revenue Ruling 2008-29, 2008-24 I.R.B. 1149, available
at
www.irs.gov/irb/2008-24_IRB/ar08.html.
www.irs.gov/irb/2006-37_IRB/ar09.html.
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If you withheld income tax from an employee's regular wages in the current or immediately preceding calendar year, you can use one of the following methods for the supplemental wages.
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Withhold a flat 25% (no other percentage allowed).
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If the supplemental wages are paid concurrently with regular wages, add the supplemental wages to the concurrently paid regular wages. If there are no concurrently paid regular wages, add the supplemental wages to alternatively, either the regular wages paid or to be paid for the current payroll period or the regular wages paid for the preceding payroll period. Figure the income tax withholding as if the total of the regular wages and supplemental wages is a single payment. Subtract the tax withheld from the regular wages. Withhold the remaining tax from the supplemental wages. If there were other payments of supplemental wages paid during the payroll period made before the current payment of supplemental wages, aggregate all the payments of supplemental wages paid during the payroll period with the regular wages paid during the payroll period, calculate the tax on the total, subtract the tax already withheld from the regular wages and the previous supplemental wage payments, and withhold the remaining tax.
-
-
If you did not withhold income tax from the employee's regular wages in the current or immediately preceding calendar year, use method 1-b above. This would occur, for example, when the value of the employee's withholding allowances claimed on Form W-4 is more than the wages.
Regardless of the method you use to withhold income tax on supplemental wages, they are subject to social security, Medicare, and FUTA taxes.
Example 1.
You pay John Peters a base salary on the 1st of each month. He is single and claims one withholding allowance. In January of 2010, he is paid $1,000. Using the wage bracket tables, you withhold $21 from this amount. In February 2010, he receives salary of $1,000 plus a commission of $2,000, which you include with regular wages. You figure the withholding based on the total of $3,000. The correct withholding from the tables is $314.
Example 2.
You pay Sharon Warren a base salary on the 1st of each month. She is single and claims one allowance. Her May 1, 2010, pay is $2,000. Using the wage bracket tables, you withhold $164. On May 14, 2010, she receives a bonus of $2,000. Electing to use supplemental payment method 1-b, you:
-
Add the bonus amount to the amount of wages from the most recent pay date
($2,000 + $2,000 = $4,000). -
Determine the amount of withholding on the combined $4,000 amount to be $535 using the wage bracket tables.
-
Subtract the amount withheld from wages on the most recent pay date from the combined withholding amount ($535 – $164 = $371).
-
Withhold $371 from the bonus payment.
Example 3.
The facts are the same as in Example 2, except you elect to use the flat rate method of withholding on the bonus. You withhold 25% of $2,000, or $500, from Sharon's bonus payment.
Example 4.
The facts are the same as in Example 2, except you elect to pay Sharon a second bonus of $1,000 on May 28. Using supplemental payment method 1-b, you:
-
Add the bonus amount to the amount of wages from the most recent pay date
($2,000 + $2,000 + $1,000 = $5,000). -
Determine the amount of withholding on the combined $5,000 amount to be $785 using the wage bracket tables.
-
Subtract the amounts withheld from wages on the most recent pay date and from the first bonus payment from the combined withholding amount
($785 – $164 – $371= $250). -
Withhold $250 from the second bonus payment.
Your payroll period is a period of service for which you usually pay wages. When you have a regular payroll period, withhold income tax for that time period even if your employee does not work the full period.
-
The last wage payment made during the same calendar year,
-
The date employment began, if during the same calendar year, or
-
January 1 of the same year.
Forms W-4. Ask all new employees to give you a signed Form W-4 when they start work. Make the form effective with the first wage payment. If a new employee does not give you a completed Form W-4, withhold income tax as if he or she is single, with no withholding allowances.

www.irs.gov/irb/2004-34_IRB/ar13.html.
Employees may claim fewer withholding allowances than they are entitled to claim. They may wish to claim fewer allowances to ensure they have enough withholding or to offset the tax on other sources of taxable income not subject to adequate withholding.
See Publication 505, Tax Withholding and Estimated Tax, for more information about completing Form W-4. Along with Form W-4, you may wish to order Publication 505 and Publication 919, How Do I Adjust My Tax Withholding, for use by your employees.
Do not accept any withholding or estimated tax payments from your employees in addition to withholding based on their Form W-4. If they require additional withholding, they should submit a new Form W-4 and, if necessary, pay estimated tax by filing Form 1040-ES, Estimated Tax for Individuals.
Amount to Add to Nonresident Alien Employee's Wages for Calculating Income Tax Withholding Only
| Payroll Period | Add Additional | |
|---|---|---|
| Weekly | $39.42 | |
| Biweekly | 78.85 | |
| Semimonthly | 85.42 | |
| Monthly | 170.83 | |
| Quarterly | 512.50 | |
| Semiannually | 1,025.00 | |
| Annually | 2,050.00 | |
| Daily or Miscellaneous (each day of the payroll period) |
7.88 |

The amounts added under the chart on the previous page are added to wages solely for calculating income tax withholding on the wages of the nonresident alien employee. The amounts from the chart on the previous page should not be included in any box on the employee's Form W-2 and do not increase the income tax liability of the employee. Also, these chart amounts do not increase the social security, Medicare, or FUTA tax liability of the employer or the employee.
This procedure only applies to nonresident alien employees who have wages subject to income tax withholding.
Example.
An employer using the percentage method of withholding pays wages of $500 for a biweekly payroll period to a married nonresident alien employee. The nonresident alien has properly completed Form W-4, entering marital status as “single” with one withholding allowance and indicating status as a nonresident alien on line 6 of Form W-4 (see Nonresident alien employee's Form W-4 later). The employer determines the wages to be used in the withholding tables by adding to the $500 amount of wages paid the amount of $78.85 from the chart on page 16 ($578.85 total). The employer then applies the applicable tables to determine the income tax withholding and the additional income tax withholding for nonresident aliens. If you use the percentage method withholding tables, reduce the amount figured in Step 1 by the value of withholding allowances and use that reduced amount to figure income tax withholding from the percentage method tables.
The $78.85 added to wages for calculating income tax withholding is not reported on Form W-2, and does not increase the income tax liability of the employee. The $78.85 added amount also does not affect the social security tax, Medicare tax, or FUTA tax liability of the employer or the employee.
-
Not claim exemption from income tax withholding,
-
Request withholding as if they are single, regardless of their actual marital status,
-
Claim only one allowance (if the nonresident alien is a resident of Canada, Mexico, or Korea, he or she may claim more than one allowance), and
-
Write “Nonresident Alien” or “NRA” above the dotted line on line 6 of Form W-4.

After submitting a copy of a requested Form W-4 to the IRS, continue to withhold federal income tax based on that Form W-4 if it is valid (see Invalid Forms W-4 on page 18). However, if the IRS later notifies you in writing the employee is not entitled to claim exemption from withholding or a claimed number of withholding allowances, withhold federal income tax based on the effective date, marital status, and maximum number of withholding allowances specified in the notice (commonly referred to as a "lock-in letter").
-
You are paying wages for the employee's prior services and the wages are subject to income tax withholding on or after the date specified in the notice.
-
You reasonably expect the employee to resume services within 12 months of the date of the notice.
-
The employee is on a leave of absence that does not exceed 12 months or the employee has a right to reemployment after the leave of absence.
www.irs.gov/irb/2007-35_IRB/ar10.html.
The Federal Insurance Contributions Act (FICA) provides for a federal system of old-age, survivors, disability, and hospital insurance. The old-age, survivors, and disability insurance part is financed by the social security tax. The hospital insurance part is financed by the Medicare tax. Each of these taxes is reported separately.
Generally, you are required to withhold social security and Medicare taxes from your employees' wages and you must also pay a matching amount of these taxes. Certain types of wages and compensation are not subject to social security and Medicare taxes. See sections 5 and 15 for details. Generally, employee wages are subject to social security and Medicare taxes regardless of the employee's age or whether he or she is receiving social security benefits. If the employee reported tips, see section 6.
www.irs.gov/irb/2004-34_IRB/ar13.html.
Example.
Early in 2010, you bought all of the assets of a plumbing business from Mr. Martin. Mr. Brown, who had been employed by Mr. Martin and received $2,000 in wages before the date of purchase, continued to work for you. The wages you paid to Mr. Brown are subject to social security taxes on the first $104,800 ($106,800 minus $2,000). Medicare tax is due on all of the wages you pay him during the calendar year.
www.socialsecurity.gov/international or see section 7 of Publication 15-A.
-
The foreign person is a member of a domestically controlled group of entities.
-
The employee of the foreign person performs services in connection with a contract between the U.S. Government (or an instrumentality of the U.S. Government) and any member of the domestically controlled group of entities. Ownership of 80% constitutes control.
For federal income tax withholding and social security, Medicare, and federal unemployment (FUTA) tax purposes, there are no differences among full-time employees, part-time employees, and employees hired for short periods. It does not matter whether the worker has another job or has the maximum amount of social security tax withheld by another employer. Income tax withholding may be figured the same way as for full-time workers. Or it may be figured by the part-year employment method explained in section 9 of Publication 15-A.
An employee who expects to be eligible for the earned income credit (EIC) and expects to have a qualifying child is entitled to receive EIC payments with his or her pay during the year. To get these payments, the employee must provide to you a properly completed Form W-5 (or Formulario W-5(SP), its Spanish translation), Earned Income Credit Advance Payment Certificate, using either the paper form or an approved electronic format. You are required to make advance EIC payments to employees who give you a completed and signed Form W-5. You may establish a system to electronically receive Forms W-5 from your employees. See Announcement 99-3 for information on electronic requirements for Form W-5. You can find Announcement 99-3 on page 15 of Internal Revenue Bulletin 1999-3 at www.irs.gov/pub/irs-irbs/irb99-03.pdf.
Certain employees who do not have a qualifying child may be able to claim the EIC on their tax return. However, they cannot get advance EIC payments.
For 2010, the advance payment can be as much as $1,830. The tables that begin on page 62 reflect that limit.
-
Whether he or she expects to have a qualifying child.
-
Whether he or she will file a joint return.
-
If the employee is married, whether his or her spouse has a Form W-5 in effect with any employer.
-
Wages, including reported tips, for the same period. Generally, figure advance EIC payments using the amount of wages subject to income tax withholding. If an employee's wages are not subject to income tax withholding, use the amount of wages subject to withholding for social security and Medicare taxes.
-
Whether the employee is married or single.
-
Whether a married employee's spouse has a Form W-5 in effect with an employer.

Example.
You have 10 employees, each entitled to an advance EIC payment of $10. The total amount of advance EIC payments you make for the payroll period is $100. The total amount of income tax withholding for the payroll period is $90. The total employee and employer social security and Medicare taxes for the payroll period is $122.60 ($61.30 each).
-
Reduce each employee's advance payment proportionally so that the total advance EIC payments equal the amount of taxes due or
-
Make full payment of the advance EIC and treat the excess as an advance payment of employment taxes.
Example.
You have 10 employees who are each entitled to an advance EIC payment of $10. The total amount of advance EIC payable for the payroll period is $100. The total employment tax for the payroll period is $90 (including income tax withholding and social security and Medicare taxes). The advance EIC payable is $10 more than the total employment tax. The $10 excess is 10% of the advance EIC payable ($100). You may—
-
Reduce each employee's payment by 10% (to $9 each) so the advance EIC payments equal your total employment tax ($90) or
-
Pay each employee $10, and treat the excess $10 as an advance payment of employment taxes. See the Instructions for Form 941 (or the Instructions for Form 944) for reporting details.
You must notify employees who have no federal income tax withheld they may be able to claim a tax refund because of the EIC. Although you do not have to notify employees who claim exemption from withholding on Form W-4 about the EIC, you are encouraged to notify any employees whose wages for 2009 were less than $43,352 ($48,362 if married filing jointly) they may be eligible to claim the credit for 2010. This is because eligible employees may get a refund of the amount of EIC that is more than the tax they owe.
You will meet this notification requirement if you issue the employee Form W-2 with the EIC notice on the back of Copy B, or a substitute Form W-2 with the same statement. You will also meet the requirement by providing Notice 797, Possible Federal Tax Refund Due to the Earned Income Credit (EIC), or your own statement that contains the same wording.
If a substitute for Form W-2 is given to the employee on time but does not have the required statement, you must notify the employee within 1 week of the date the substitute for Form W-2 is given. If Form W-2 is required but is not given on time, you must give the employee Notice 797 or your written statement by the date Form W-2 is required to be given. If Form W-2 is not required, you must notify the employee by February 8, 2010.
In general, you must deposit federal income tax withheld and both the employer and employee social security and Medicare taxes (minus any advance EIC payments). You must deposit by using the Electronic Federal Tax Payment System (EFTPS) or by mailing or delivering a check, money order, or cash with Form 8109, Federal Tax Deposit Coupon, to a financial institution that is an authorized depositary for federal taxes. Some taxpayers are required to deposit using EFTPS. See How To Deposit on page 23 for information on electronic deposit requirements for 2010.

-
Your Form 941 total tax liability for either the current quarter or the preceding quarter is less than $2,500, and you did not incur a $100,000 next-day deposit obligation during the current quarter. If you are not sure your total tax liability for the current quarter will be less than $2,500, (and your liability for the preceding quarter was not less than $2,500), make deposits using the semi-weekly or monthly rules so you won't be subject to failure to deposit penalties.
-
You are a monthly schedule depositor (defined below) and make a payment in accordance with the Accuracy of Deposits Rule discussed on page 23. This payment may be $2,500 or more.
There are two deposit schedules—monthly and semiweekly—for determining when you deposit social security, Medicare, and withheld income taxes. These schedules tell you when a deposit is due after a tax liability arises (for example, when you have a payday). Before the beginning of each calendar year, you must determine which of the two deposit schedules you are required to use. The deposit schedule you must use is based on the total tax liability you reported on Form 941 during a lookback period discussed below. Your deposit schedule is not determined by how often you pay your employees or make deposits. See special rules for Forms 944 and 945 below. See Application of Monthly and Semiweekly Schedules on page 22.

Table 1. Lookback Period for Calendar Year 2010
| Lookback Period | |||||||
| 2008 2009 | 2010 | ||||||
| July 1 | Oct. 1 | Jan. 1 | Apr.1 | Calendar Year | |||
| Sep. 30 | Dec. 31 | Mar. 31 | June 30 | Jan.–Dec. | |||

Example.
An employer originally reported a tax liability of $45,000 for the lookback period. The employer discovered during January 2010, the tax during one of the lookback period quarters was understated by $10,000 and corrected this error by filing Form 941-X for the quarter in which the error was discovered. This employer is a monthly schedule depositor for 2010 because the lookback period tax liabilities are based on the amounts originally reported, and they were $50,000 or less.
You are a monthly schedule depositor for a calendar year if the total taxes on line 8 of Form 941 for the 4 quarters in your lookback period were $50,000 or less. Under the monthly deposit schedule, deposit employment taxes on payments made during a month by the 15th day of the following month. See also Deposits on Banking Days Only on page 22.
Monthly schedule depositors should not file Form 941 or Form 944 on a monthly basis. Also, do not file Form 941-M, Employer's Monthly Federal Tax Return, unless you are instructed to do so by an IRS representative.
You are a semiweekly schedule depositor for a calendar year if the total taxes on line 8 of Form 941 during your lookback period were more than $50,000. Under the semiweekly deposit schedule, deposit employment taxes for payments made on Wednesday, Thursday, and/or Friday by the following Wednesday. Deposit taxes for payments made on Saturday, Sunday, Monday, and/or Tuesday by the following Friday. See also Deposits on Banking Days Only later.
Note.
Semiweekly schedule depositors must complete Schedule B (Form 941), Report of Tax Liability for Semiweekly Schedule Depositors, and submit it with Form 941. If you file Form 944 and are a semiweekly schedule depositor, complete Form 945-A, Annual Record of Federal Tax Liability, and submit it with your return (instead of Schedule B).
Table 2. Semiweekly Deposit Schedule
| IF the payday falls on a . . . |
THEN deposit taxes by the following . . . |
| Wednesday, Thursday, and/or Friday |
Wednesday |
| Saturday, Sunday, Monday, and/or Tuesday |
Friday |
| Summary of Steps to Determine Your Deposit Schedule |
||||
| 1. | Identify your lookback period (see Lookback period earlier). | |||
| 2. | Add the total taxes from line 8, Form 941 you reported during the lookback period. | |||
| 3. | Determine if you are a monthly or semiweekly schedule depositor: | |||
| If the total taxes you reported in the lookback period were | Then you are a | |||
| $50,000 or less | Monthly Schedule Depositor | |||
| More than $50,000 | Semiweekly Schedule Depositor | |||
Rose Co. reported Form 941 taxes as follows:
| 2009 Lookback Period | 2010 Lookback Period | ||
|---|---|---|---|
| 3rd Quarter 2007 | $12,000 | 3rd Quarter 2008 |
$12,000 |
| 4th Quarter 2007 | $12,000 | 4th Quarter 2008 |
$12,000 |
| 1st Quarter 2008 | $12,000 | 1st Quarter 2009 |
$12,000 |
| 2nd Quarter 2008 | $12,000 | 2nd Quarter 2009 |
$15,000 |
| $48,000 | $51,000 | ||
Rose Co. is a monthly schedule depositor for 2009 because its tax liability for the 4 quarters in its lookback period (third quarter 2007 through second quarter 2008) was not more than $50,000. However, for 2010, Rose Co. is a semiweekly schedule depositor because the total taxes exceeded $50,000 for the 4 quarters in its lookback period (third quarter 2008 through second quarter 2009).
If a deposit is required to be made on a day that is not a banking day, the deposit is considered timely if it is made by the close of the next banking day. In addition to federal and state bank holidays, Saturdays and Sundays are treated as nonbanking days. For example, if a deposit is required to be made on a Friday and Friday is not a banking day, the deposit will be considered timely if it is made by the following Monday (if that Monday is a banking day).
Semiweekly schedule depositors have at least 3 banking days to make a deposit. If any of the 3 weekdays after the end of a semiweekly period is a banking holiday, you will have 1 additional banking day to deposit. For example, if a semiweekly schedule depositor accumulated taxes for payments made on Friday and the following Monday is not a banking day, the deposit normally due on Wednesday may be made on Thursday (allowing 3 banking days to make the deposit).
The terms “monthly schedule depositor” and “semiweekly schedule depositor” do not refer to how often your business pays its employees or even how often you are required to make deposits. The terms identify which set of deposit rules you must follow when an employment tax liability arises. The deposit rules are based on the dates when wages are paid (for example, cash basis); not on when tax liabilities are accrued for accounting purposes.
If you accumulate $100,000 or more of taxes (line 10 of Form 941 or line 9 of Form 944) on any day during a deposit period, you must deposit the tax by the next banking day, whether you are a monthly or semiweekly schedule depositor.
For purposes of the $100,000 rule, do not continue accumulating a tax liability after the end of a deposit period. For example, if a semiweekly schedule depositor has accumulated a liability of $95,000 on a Tuesday (of a Saturday-through-Tuesday deposit period) and accumulated a $10,000 liability on Wednesday, the $100,000 next-day deposit rule does not apply. Thus, $95,000 must be deposited by Friday and $10,000 must be deposited by the following Wednesday.
However, once you accumulate at least $100,000 in a deposit period, stop accumulating at the end of that day and begin to accumulate anew on the next day. For example, Fir Co. is a semiweekly schedule depositor. On Monday, Fir Co. accumulates taxes of $110,000 and must deposit this amount on Tuesday, the next banking day. On Tuesday, Fir Co. accumulates additional taxes of $30,000. Because the $30,000 is not added to the previous $110,000 and is less than $100,000, Fir Co. must deposit the $30,000 by Friday (following the semiweekly deposit schedule).

Example.
Elm, Inc., started its business on April 1, 2010. On April 9, it paid wages for the first time and accumulated a tax liability of $40,000. On Friday, April 16, 2010, Elm, Inc., paid wages and accumulated a liability of $60,000, bringing its accumulated tax liability to $100,000. Because this was the first year of its business, the tax liability for its lookback period is considered to be zero, and it would be a monthly schedule depositor based on the lookback rules. However, since Elm, Inc., accumulated a $100,000 liability on April 16, it became a semiweekly schedule depositor on April 17. It will be a semiweekly schedule depositor for the remainder of 2010 and for 2011. Elm, Inc., is required to deposit the $100,000 by Monday, April 19, the next banking day.
You are required to deposit 100% of your tax liability on or before the deposit due date. However, penalties will not be applied for depositing less than 100% if both of the following conditions are met.
-
Any deposit shortfall does not exceed the greater of $100 or 2% of the amount of taxes otherwise required to be deposited and
-
The deposit shortfall is paid or deposited by the shortfall makeup date as described below.
-
Monthly schedule depositor. Deposit the shortfall or pay it with your return by the due date of your return for the return period in which the shortfall occurred. You may pay the shortfall with your return even if the amount is $2,500 or more.
-
Semiweekly schedule depositor. Deposit by the earlier of:
-
The first Wednesday or Friday (whichever comes first) that falls on or after the 15th of the month following the month in which the shortfall occurred or
-
The due date of your return (for the return period of the tax liability).
-
The two methods of depositing employment taxes, including Form 945 taxes, are discussed below. See Payment with return on page 20 for exceptions explaining when taxes may be paid with the tax return instead of being deposited.
-
Your total deposits of depository taxes in 2008 were more than $200,000 or
-
You were required to use EFTPS in 2009 or any prior year.

-
You are a new employer and you have been assigned an EIN, but you have not received your initial supply of Forms 8109 or
-
You have not received your resupply of preprinted Forms 8109.

Penalties may apply if you do not make required deposits on time, if you make deposits for less than the required amount, or if you do not use EFTPS when required. The penalties do not apply if any failure to make a proper and timely deposit was due to reasonable cause and not to willful neglect. The IRS may also waive penalties if you inadvertently fail to deposit in the first quarter you were required to deposit any employment tax, or in the first quarter during which your frequency of deposits changed, if you timely filed your employment tax return.
For amounts not properly or timely deposited, the penalty rates are as follows.
| 2% | - | Deposits made 1 to 5 days late. |
| 5% | - | Deposits made 6 to 15 days late. |
| 10% | - | Deposits made 16 or more days late. Also applies to amounts paid within 10 days of the date of the first notice the IRS sent asking for the tax due. |
| 10% | - | Deposits made at an unauthorized financial institution, paid directly to the IRS, or paid with your tax return. But see Depositing without an EIN on page 24 and Payment with return on page 20 for exceptions. |
| 10% | - | Amounts subject to electronic deposit requirements but not deposited using EFTPS. |
| 15% | - | Amounts still unpaid more than 10 days after the date of the first notice the IRS sent asking for the tax due or the day on which you received notice and demand for immediate payment, whichever is earlier. |
Late deposit penalty amounts are determined using calendar days, starting from the due date of the liability.
www.irs.gov/pub/irs-irbs/irb01-50.pdf.
Example.
Cedar, Inc. is required to make a deposit of $1,000 on June 15 and $1,500 on July 15. It does not make the deposit on June 15. On July 15, Cedar, Inc. deposits $2,000. Under the deposits rule, which applies deposits to the most recent tax liability, $1,500 of the deposit is applied to the July 15 deposit and the remaining $500 is applied to the June deposit. Accordingly, $500 of the June 15 liability remains undeposited. The penalty on this underdeposit will apply as explained on page 25.

-
Completed line 17 of Form 941 instead of Schedule B (Form 941),
-
Failed to attach a properly completed Schedule B (Form 941), or
-
Improperly completed Schedule B (Form 941) by, for example, entering tax deposits instead of tax liabilities in the numbered spaces.
-
If you are a monthly schedule depositor, report your tax liabilities (not your deposits) in the monthly entry spaces on line 17 of Form 941.
-
If you are a semiweekly schedule depositor, report your tax liabilities (not your deposits) on Schedule B (Form 941) in the lines that represent the dates your employees were paid.
-
Verify your total liability shown on line 17 of Form 941 or the bottom of Schedule B (Form 941) equals your tax liability shown on line 10 of Form 941.
-
Do not show negative amounts on line 17 of Form 941 or Schedule B (Form 941).
-
For prior period errors discovered after December 31, 2008, do not adjust your tax liabilities reported on line 17 of Form 941 or on Schedule B (Form 941).
-
Seasonal employers who no longer file for quarters when they regularly have no tax liability because they have paid no wages. To alert the IRS you will not have to file a return for one or more quarters during the year, check the “Seasonal employer” box on line 19 of Form 941. When you fill out Form 941, be sure to check the box on the top of the form that corresponds to the quarter reported. Generally, the IRS will not inquire about unfiled returns if at least one taxable return is filed each year. However, you must check the “Seasonal employer” box on every Form 941 you file. Otherwise, the IRS will expect a return to be filed for each quarter.
-
Household employers reporting social security and Medicare taxes and/or withheld income tax. If you are a sole proprietor and file Form 941 or Form 944 for business employees, you may include taxes for household employees on your Form 941 or Form 944. Otherwise, report social security and Medicare taxes and income tax withholding for household employees on Schedule H (Form 1040), Household Employment Taxes. See Publication 926, Household Employer's Tax Guide, for more information.
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Employers reporting wages for employees in American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, the U.S. Virgin Islands, or Puerto Rico. If your employees are not subject to U.S. income tax withholding, use Form 941-SS or Form 944-SS. Employers in Puerto Rico use Form 941-PR or Form 944-PR. If you have both employees who are subject to U.S. income tax withholding and employees who are not subject to U.S. income tax withholding, you can file only Form 941 (or Form 944) and include all your employees' wages on that form. For more information, see Publication 80 (Circular SS) Federal Tax Guide for Employers in US Virgin Islands, Guam, American Samoa and the Commonwealth of the Northern Mariana Islands.
-
Agricultural employers reporting social security, Medicare, and withheld income taxes. Report these taxes on Form 943, Employer's Annual Federal Tax Return for Agricultural Employees.
Note.
In addition to any penalties, interest accrues from the due date of the tax on any unpaid balance.
-
Do not report more than 1 calendar quarter on a Form 941.
-
Use the preaddressed form mailed to you. If you do not have the form, get one from the IRS in time to file the return when due.
-
If you use a form that is not preaddressed, show your name and EIN on it. Be sure they are exactly as they appeared on earlier returns.
-
See the Instructions for Form 941 or the Instructions for Form 944 for information on preparing the form.
Table 3. Social Security and Medicare Tax Rates (for 3 prior years)
| Calendar Year | Wage Base Limit (each employee) | Tax Rate on Taxable Wages and Tips |
|---|---|---|
| 2009–Social Security | $106,800 | 12.4% |
| 2009–Medicare | All Wages | 2.9% |
| 2008–Social Security | $102,000 | 12.4% |
| 2008–Medicare | All Wages | 2.9% |
| 2007–Social Security | $97,500 | 12.4% |
| 2007–Medicare | All Wages | 2.9% |
-
Report bonuses as wages and as social security and Medicare wages on Forms W-2 and on Form 941 or Form 944,
-
Report both social security and Medicare wages and taxes separately on Forms W-2, W-3, 941, and 944,
-
Report employee share of social security taxes on Form W-2 in the box for social security tax withheld (box 4), not as social security wages,
-
Report employee share of Medicare taxes on Form W-2 in the box for Medicare tax withheld (box 6), not as Medicare wages,
-
Make sure the social security wage amount for each employee does not exceed the annual social security wage base limit (for example, $106,800 for 2010),
-
Do not report noncash wages that are not subject to social security or Medicare taxes as social security or Medicare wages,
-
If you used an EIN on any Form 941 or Form 944 for the year that is different from the EIN reported on Form W-3, enter the other EIN on Form W-3 in the box for “Other EIN used this year,”
-
Be sure the amounts on Form W-3 are the total of amounts from Forms W-2, and
-
Reconcile Form W-3 with your four quarterly Forms 941 or annual Form 944 by comparing amounts reported for:
-
Income tax withholding;
-
Social security wages, social security tips, and Medicare wages and tips. Form W-3 should include Forms 941 or Form 944 adjustments only for the current year (that is, if the Form 941 or Form 944 adjustments include amounts for a prior year, do not report those prior year adjustments on the current-year Forms W-2 and W-3);
-
Social security and Medicare taxes. The amounts shown on the four quarterly Forms 941 or the annual Form 944 , including current-year adjustments, should be approximately twice the amounts shown on Form W-3. This is because Form 941 and Form 944 include both the employer and employee shares of social security and Medicare taxes; and
-
Advance earned income credit (EIC).
-

In certain cases, amounts reported as social security and Medicare taxes in column 2 of lines 5a, 5b, and 5c of Form 941 (column 2 of lines 4a, 4b, and 4c for Form 944) must be adjusted to arrive at your correct tax liability (for example, excluding amounts withheld by a third-party payor or amounts you were not required to withhold). Current period adjustments are reported on lines 7a, 7b, and 7c of Form 941 and line 6 of Form 944 and include the following:
-
Social security tax (reported on lines 5a, column 1, and 5b, column 1) (or lines 4a and 4b of column 1 on Form 944) by 6.2% (.062) and
-
Medicare tax (reported on line 5c, column 1) (line 4c of column 1 on Form 944) by 1.45% (.0145).

Example.
Cedar, Inc. was entitled to the following current period adjustments.
-
Third-party sick pay. Cedar, Inc. included taxes of $2,000 for sick pay on lines 5a, column 2 and 5c, column 2 for social security and Medicare taxes. However, the third-party payor of the sick pay withheld and paid the employee share ($1,000) of these taxes. Cedar, Inc. is entitled to a $1,000 sick pay adjustment (negative) on line 7b.
-
Fractions of cents. Cedar, Inc. determined the amounts withheld and deposited for social security and Medicare taxes during the quarter were a net $1.44 more than the employee share of the amount figured on lines 5a, column 2, 5b, column 2, and 5c, column 2 (social security and Medicare taxes). This difference was caused by adding or dropping fractions of cents when figuring social security and Medicare taxes for each wage payment. Cedar, Inc. must report a positive $1.44 fractions-of-cents adjustment on line 7a.
-
Life insurance premiums. Cedar, Inc. paid group-term life insurance premiums for policies in excess of $50,000 for former employees. The former employees must pay the employee share of the social security and Medicare taxes ($200) on the policies. However, Cedar, Inc. must include the employee share of these taxes with the social security and Medicare taxes reported on lines 5a, column 2 and 5c, column 2 of Form 941. Therefore, Cedar, Inc. is entitled to a negative $200 adjustment on
line 7c.
Cedar, Inc. reported these adjustments on line 7 of
Form 941 as shown in the Current Period Adjustment Example above.
Current Period Adjustment Example
www.irs.gov/irb/2008-32_irb/ar13.html. You will use the adjustment process if you underreported employment taxes and are making a payment, or if you overreported employment taxes and will be applying the credit to the Form 941 or Form 944 period during which you file Form 941-X or Form 944-X. You will use the claim process if you overreported employment taxes and are requesting a refund or abatement of the overreported amount. We use the terms “correct” and “corrections” to include interest-free adjustments under sections 6205 and 6413, and claims for refund and abatement under sections 6402, 6414, and 6404 of the Internal Revenue Code.
-
correct that error using Form 941-X or Form 944-X,
-
file a separate Form 941-X or Form 944-X for each Form 941 or Form 944 you are correcting, and
-
file Form 941-X or Form 944-X separately. Do not file with Form 941 or Form 944.
www.socialsecurity.gov/employer.
-
the failure to report relates to an issue raised in an IRS examination of a prior return or
-
the employer knowingly underreported its employment tax liability.
-
Receipt of an IRS notice and demand for payment after assessment or
-
Receipt of an IRS Notice of Determination of Worker Classification (Letter 3523).
If an employee repays you for wages received in error, do not offset the repayments against current-year wages unless the repayments are for amounts received in error in the current year.
The Federal Unemployment Tax Act (FUTA), with state unemployment systems, provides for payments of unemployment compensation to workers who have lost their jobs. Most employers pay both a federal and a state unemployment tax. A list of state unemployment agencies, including addresses and phone numbers, is available in the Instructions for Form 940. Only the employer pays FUTA tax; it is not withheld from the employee's wages. For more information, see the Instructions for Form 940.

-
General test.
You are subject to FUTA tax in 2010 on the wages you pay employees who are not farmworkers or household workers if in the current or preceding calendar year:
-
You paid wages of $1,500 or more in any calendar quarter in 2009 or 2010, or
-
You had one or more employees for at least some part of a day in any 20 or more different weeks in 2009 or 20 or more different weeks in 2010.
-
-
Household employees test.
You are subject to FUTA tax if you paid total cash wages of $1,000 or more to household employees in any calendar quarter in 2009 or 2010. A household employee is an employee who performs household work in a private home, local college club, or local fraternity or sorority chapter.
-
Farmworkers test.
You are subject to FUTA tax on the wages you pay to farmworkers if:
-
You paid cash wages of $20,000 or more to farmworkers during any calendar quarter in 2009 or 2010, or
-
You employed 10 or more farmworkers during at least some part of a day (whether or not at the same time) during any 20 or more different weeks in 2008 or 20 or more different weeks in 2009.
-
15. Special Rules for Various Types of Services and Payments
|
Section references are to the Internal Revenue Code unless otherwise noted.
|
| Special Classes of Employment and Special Types of Payments | Treatment Under Employment Taxes | ||||
|---|---|---|---|---|---|
| Income Tax Withholding | Social Security and Medicare | Federal Unemployment | |||
| Aliens, nonresident. | See Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities, and Publication 519, U.S. Tax Guide for Aliens. | ||||
| Aliens, resident | |||||
| 1. Service performed in the U.S. | Same as U.S. citizen. | Same as U.S. citizen. (Exempt if any part of service as crew member of foreign vessel or aircraft is performed outside U.S.) | Same as U.S. citizen. | ||
| 2. Service performed outside U.S. | Withhold | Taxable if (1) working for an American employer or (2) an American employer by agreement covers U.S. citizens and residents employed by its foreign affiliates. | Exempt unless on or in connection with an American vessel or aircraft and either performed under contract made in U.S., or alien is employed on such vessel or aircraft when it touches U.S. port. | ||
| Cafeteria plan benefits under section 125. | If employee chooses cash, subject to all employment taxes. If employee chooses another benefit, the treatment is the same as if the benefit was provided outside the plan. See Publication 15-B for more information. | ||||
| Deceased worker: | |||||
| 1. | Wages paid to beneficiary or estate in same calendar year as worker's death. See the Instructions for Forms W-2 and W-3 for details. | Exempt | Taxable | Taxable | |
| 2. | Wages paid to beneficiary or estate after calendar year of worker's death. | Exempt | Exempt | Exempt | |
| Dependent care assistance programs. | Exempt to the extent it is reasonable to believe amounts are excludable from gross income under section 129. | ||||
| Disabled worker's wages paid after year in which worker became entitled to disability insurance benefits under the Social Security Act. | Withhold | Exempt, if worker did not perform any service for employer during period for which payment is made. | Taxable | ||
| Employee business expense reimbursement: | |||||
| 1. Accountable plan. | |||||
| a. | Amounts not exceeding specified government rate for per diem or standard mileage. | Exempt | Exempt | Exempt | |
| b. | Amounts in excess of specified government rate for per diem or standard mileage. | Withhold | Taxable | Taxable | |
| 2. Nonaccountable plan. | Withhold | Taxable | Taxable | ||
| See page 11 for details. | |||||
| Family employees: | |||||
| 1. | Child employed by parent (or partnership in which each partner is a parent of the child). | Withhold | Exempt until age 18; age 21 for domestic service. | Exempt until age 21 | |
| 2. | Parent employed by child. | Withhold | Taxable if in course of the son's or daughter's business. For domestic services, see section 3. | Exempt | |
| 3. | Spouse employed by spouse. | Withhold | Taxable if in course of spouse's business. | Exempt | |
| See section 3 for more information. | |||||
| Fishing and related activities. | See Publication 334, Tax Guide for Small Business. | ||||
| Foreign governments and international organizations. | Exempt | Exempt | Exempt | ||
| Foreign service by U.S. citizens: | |||||
| 1. | As U.S. government employees. | Withhold | Same as within U.S. | Exempt | |
| 2. | For foreign affiliates of American employers and other private employers. | Exempt if at time of payment (1) it is reasonable to believe employee is entitled to exclusion from income under section 911 or (2) the employer is required by law of the foreign country to withhold income tax on such payment. | Exempt unless (1) an American employer by agreement covers U.S. citizens employed by its foreign affiliates or (2) U.S. citizen works for American employer. | Exempt unless (1) on American vessel or aircraft and work is performed under contract made in U.S. or worker is employed on vessel when it touches U.S. port or (2) U.S. citizen works for American employer (except in a contiguous country with which the U.S. has an agreement for unemployment compensation) or in the U.S. Virgin Islands. | |
| Fringe benefits | Taxable on excess of fair market value of the benefit over the sum of an amount paid for it by the employee and any amount excludable by law. However, special valuation rules may apply. Benefits provided under cafeteria plans may qualify for exclusion from wages for social security, Medicare, and FUTA taxes. See Publication 15-B for details. | ||||
| Government employment: | |||||
| State/local governments and political subdivisions, employees of: | |||||
| 1. | Salaries and wages (includes payments to most elected and appointed officials.) See Chapter 3 of Publication 963, Federal-State Reference Guide. | Withhold | Generally, taxable for (1) services performed by employees who are either (a) covered under a section 218 agreement or (b) not covered under a section 218 agreement and not a member of a public retirement system (mandatory social security and Medicare coverage), and (2) (for Medicare tax only) for services performed by employees hired or rehired after 3/31/86 who are not covered under a section 218 agreement or the mandatory social security provisions, unless specifically excluded by law. See Publication 963. | Exempt | |
| 2. | Election workers. Election individuals are workers who are employed to perform services for state or local governments at election booths in connection with national, state, or local elections. | Exempt | Taxable if paid $1,500 or more in 2010 (lesser amount if specified by a section 218 social security agreement). See Revenue Ruling 2000-6. | Exempt | |
| Note. File Form W-2 for payments of $600 or more even if no social security, or Medicare taxes were withheld. | |||||
| 3. | Emergency workers. Emergency workers who were hired on a temporary basis in response to a specific unforeseen emergency and are not intended to become permanent employees. | Withhold | Exempt if serving on a temporary basis in case of fire, storm, snow, earthquake, flood, or similar emergency. | Exempt | |
| U.S. federal government employees | Withhold | Taxable for Medicare. Taxable for social security unless hired before 1984. See section 3121(b)(5). | Exempt | ||
| Homeworkers (industrial, cottage industry): | |||||
| 1. | Common law employees. | Withhold | Taxable | Taxable | |
| 2. | Statutory employees. See section 2 for details. |
Exempt | Taxable if paid $100 or more in cash in a year. | Exempt | |
| Hospital employees: | |||||
| 1. | Interns | Withhold | Taxable | Exempt | |
| 2. | Patients | Withhold | Taxable (Exempt for state or local government hospitals.) | Exempt | |
| Household employees: | |||||
| 1. | Domestic service in private homes. Farmers, see Publication 51 (Circular A). |
Exempt (withhold if both employer and employee agree). | Taxable if paid $1,700 or more in cash in 2010. Exempt if performed by an individual under age 18 during any portion of the calendar year and is not the principal occupation of the employee. | Taxable if employer paid total cash wages of $1,000 or more in any quarter in the current or preceding calendar year. | |
| 2. | Domestic service in college clubs, fraternities, and sororities. | Exempt (withhold if both employer and employee agree). | Exempt if paid to regular student; also exempt if employee is paid less than $100 in a year by an income-tax-exempt employer. | Taxable if employer paid total cash wages of $1,000 or more in any quarter in the current or preceding calendar year. | |
| Insurance for employees: | |||||
| 1. | Accident and health insurance premiums under a plan or system for employees and their dependents generally or for a class or classes of employees and their dependents. | Exempt (except 2% shareholder-employees of S corporations). | Exempt | Exempt | |
| 2. | Group-term life insurance costs. See Publication 15-B for details |
Exempt | Exempt, except for the cost of group-term life insurance includible in the employee's gross income. Special rules apply for former employees. | Exempt | |
| Insurance agents or solicitors: | |||||
| 1. | Full-time life insurance salesperson. | Withhold only if employee under common law. See section 2. | Taxable | Taxable if (1) employee under common law and (2) not paid solely by commissions. | |
| 2. | Other salesperson of life, casualty, etc., insurance. | Withhold only if employee under common law. | Taxable only if employee under common law. | Taxable if (1) employee under common law and (2) not paid solely by commissions. | |
| Interest on loans with below-market interest rates (foregone interest and deemed original issue discount). | See Publication 15-A. | ||||
| Leave-sharing plans: Amounts paid to an employee under a leave-sharing plan. | Withhold | Taxable | Taxable | ||
| Newspaper carriers and vendors: Newspaper carriers under age 18; newspaper and magazine vendors buying at fixed prices and retaining receipts from sales to customers. See Publication 15-A for information on statutory nonemployee status. | Exempt (withhold if both employer and employee voluntarily agree). | Exempt | Exempt | ||
| Noncash payments: | |||||
| 1. | For household work, agricultural labor, and service not in the course of the employer's trade or business. | Exempt (withhold if both employer and employee voluntarily agree). | Exempt | Exempt | |
| 2. | To certain retail commission salespersons ordinarily paid solely on a cash commission basis. | Optional with employer, except to the extent employee's supplemental wages during the year exceed $1,000,000. | Taxable | Taxable | |
| Nonprofit organizations. | See Publication 15-A. | ||||
| Officers or shareholders of an S Corporation. Distributions and other payments by an S corporation to a corporate officer or shareholder must be treated as wages to the extent the amounts are reasonable compensation for services to the corporation by an employee. See the Instructions for Form 1120S. | Withhold | Taxable | Taxable | ||
| Partners: Payments to general or limited partners of a partnership. See Publication 541, Partnerships, for partner reporting rules. | Exempt | Exempt | Exempt | ||
| Railroads: Payments subject to the Railroad Retirement Act. See Publication 915, Social Security and Equivalent Railroad Retirement Benefits, for more details. | Withhold | Exempt | Exempt | ||
| Religious exemptions. | See Publication 15-A and Publication 517, Social Security and Other Information for Members of the Clergy and Religious Workers. | ||||
| Retirement and pension plans: | |||||
| 1. | Employer contributions to a qualified plan. | Exempt | Exempt | Exempt | |
| 2. | Elective employee contributions and deferrals to a plan containing a qualified cash or deferred compensation arrangement (for example, 401(k)). | Generally exempt, but see section 402(g) for limitation. | Taxable | Taxable | |
| 3. | Employer contributions to individual retirement accounts under simplified employee pension plan (SEP). | Generally exempt, but seesection 402(g) for salary reduction SEP limitation. | Exempt, except for amounts contributed under a salary reduction SEP agreement. | ||
| 4. | Employer contributions to section 403(b) annuities. | Generally exempt, but see section 402(g) for limitation. | Taxable if paid through a salary reduction agreement (written or otherwise). | ||
| 5. | Employee salary reduction contributions to a SIMPLE retirement account. | Exempt | Taxable | Taxable | |
| 6. | Distributions from qualified retirement and pension plans and section 403(b) annuities. See Publication 15-A for information on pensions, annuities, and employer contributions to nonqualified deferred compensation arrangements. |
Withhold, but recipient may elect exemption on Form W-4P in certain cases; mandatory 20% withholding applies to an eligible rollover distribution that is not a direct rollover; exempt for direct rollover. See Publication 15-A. | Exempt | Exempt | |
| Salespersons: | |||||
| 1. | Common law employees. | Withhold | Taxable | Taxable | |
| 2. | Statutory employees. | Exempt | Taxable | Taxable, except for full-time life insurance sales agents. | |
| 3. | Statutory nonemployees (qualified real estate agents, direct sellers, and certain companion sitters). See Publication 15-A for details. | Exempt | Exempt | Exempt | |
| Scholarships and fellowship grants: (includible in income under section 117(c)). | Withhold | Taxability depends on the nature of the employment and the status of the organization. See Students, scholars, trainees, teachers, etc. on next page. | |||
| Severance or dismissal pay. | Withhold | Taxable | Taxable | ||
| Service not in the course of the employer's trade or business, other than on a farm operated for profit or for household employment in private homes. | Withhold only if employee earns $50 or more in cash in a quarter and works on 24 or more different days in that quarter or in the preceding quarter. | Taxable if employee receives $100 or more in cash in a calendar year. | Taxable only if employee earns $50 or more in cash in a quarter and works on 24 or more different days in that quarter or in the preceding quarter. | ||
| Sick pay. See Publication 15-A for more information. |
Withhold | Exempt after end of 6 calendar months after the calendar month employee last worked for employer. | |||
| Students, scholars, trainees, teachers, etc.: | |||||
| 1. | Student enrolled and regularly attending classes, performing services for: | ||||
| a. | Private school, college, or university. | Withhold | Exempt | Exempt | |
| b. | Auxiliary nonprofit organization operated for and controlled by school, college, or university. | Withhold | Exempt unless services are covered by a section 218 (Social Security Act) agreement. | Exempt | |
| c. | Public school, college, or university. | Withhold | Exempt unless services are covered by a section 218 (Social Security Act) agreement. | Exempt | |
| 2. | Full-time student performing service for academic credit, combining instruction with work experience as an integral part of the program. | Withhold | Taxable | Exempt unless program was established for or on behalf of an employer or group of employers. | |
| 3. | Student nurse performing part-time services for nominal earnings at hospital as incidental part of training. | Withhold | Exempt | Exempt | |
| 4. | Student employed by organized camps. | Withhold | Taxable | Exempt | |
| 5. | Student, scholar, trainee, teacher, etc., as nonimmigrant alien under section 101(a)(15)(F), (J), (M), or (Q) of Immigration and Nationality Act (that is, aliens holding F-1, J-1, M-1, or Q-1 visas). | Withhold unless excepted by regulations. | Exempt if service is performed for purpose specified in section 101(a)(15)(F), (J), (M), or (Q) of Immigration and Nationality Act. However, these taxes may apply if the employee becomes a resident alien. See the special residency tests for exempt individuals in chapter 1 of Publication 519. | ||
| Supplemental unemployment compensation plan benefits. | Withhold | Exempt under certain conditions. See Publication 15-A. | |||
| Tips: | |||||
| 1. | If $20 or more in a month. | Withhold | Taxable | Taxable for all tips reported in writing to employer. | |
| 2. | If less than $20 in a month. See section 6 for more information. |
Exempt | Exempt | Exempt | |
| Worker's compensation. | Exempt | Exempt | Exempt | ||
There are several ways to figure income tax withholding. The following methods of withholding are based on the information you get from your employees on Form W-4. See section 9 for more information on Form W-4.

Under the wage bracket method, find the proper table (on pages 41-60) for your payroll period and the employee's marital status as shown on his or her Form W-4. Then, based on the number of withholding allowances claimed on the Form W-4 and the amount of wages, find the amount of federal tax to withhold. If your employee is claiming more than 10 withholding allowances, see below.
If you cannot use the wage bracket tables because wages exceed the amount shown in the last bracket of the table, use the percentage method of withholding described below. Be sure to reduce wages by the amount of total withholding allowances in Table 5 on this page before using the percentage method tables (pages 39-40).
-
Multiply the number of withholding allowances over 10 by the allowance value for the payroll period. The allowance values are in Table 5, Percentage Method—2010 Amount for One Withholding Allowance, later.
-
Subtract the result from the employee's wages.
-
On this amount, find and withhold the tax in the column for 10 allowances.
If you do not want to use the wage bracket tables on pages 41-60 to figure how much income tax to withhold, you can use a percentage computation based on Table 5 below and the appropriate rate table. This method works for any number of withholding allowances the employee claims and any amount of wages.
Use these steps to figure the income tax to withhold under the percentage method.
-
Multiply one withholding allowance for your payroll period (see Table 5 below) by the number of allowances the employee claims.
-
Subtract that amount from the employee's wages.
-
Determine the amount to withhold from the appropriate table on page 39 or 40.
Table 5. Percentage Method—2010 Amount for One Withholding Allowance (unchanged from 2009)
| Payroll Period | One Withholding Allowance |
|---|---|
| Weekly | $70.19 |
| Biweekly | 140.38 |
| Semimonthly | 152.08 |
| Monthly | 304.17 |
| Quarterly | 912.50 |
| Semiannually | 1,825.00 |
| Annually | 3,650.00 |
| Daily or miscellaneous (each day of the payroll period) | 14.04 |
Example.
A married person claims four withholding allowances. She is paid $1,000 a week. Multiply the weekly wages by 52 weeks to figure the annual wage of $52,000. Subtract $14,600 (the value of four withholding allowances for 2010) for a balance of $37,400. Using the table for the annual payroll period on page 40, $3,010 is withheld. Divide the annual tax by 52. The weekly income tax to withhold is $57.88.
Rather than the Wage Bracket Method or Percentage Method described above, you can use an alternative method to withhold income tax. Publication 15-A describes these alternative methods and contains:
-
Formula tables for percentage method withholding (for automated payroll systems),
-
Wage bracket percentage method tables (for automated payroll systems), and
-
Combined income, social security, and Medicare tax withholding tables.
Some of the alternative methods explained in Publication 15-A are annualized wages, average estimated wages, cumulative wages, and part-year employment.
To figure the advance EIC payment, you may use either the Wage Bracket Method or the Percentage Method as explained below. You may use other methods for figuring advance EIC payments if the amount of the payment is about the same as it would be using tables in this booklet. See the tolerances allowed in the chart in section 9 of Publication 15-A. See also section 10 in this booklet for an explanation of the advance payment of the EIC.
The number of withholding allowances an employee claims on Form W-4 is not used in figuring the advance EIC payment. Nor does it matter the employee has claimed exemption from income tax withholding on Form W-4.
If you use the wage bracket tables on pages 63-69, figure the advance EIC payment as follows.
Find the employee's gross wages before any deductions using the appropriate table. There are different tables for (a) single or head of household, (b) married without spouse filing certificate, and (c) married with both spouses filing certificates. Determine the amount of the advance EIC payment shown in the appropriate table for the amount of wages paid.
If you do not want to use the wage bracket tables to figure how much to include in an employee's wages for the advance EIC payment, you can use the percentage method based on the appropriate rate table on pages 61 and 62.
Find the employee's gross wages before any deductions in the appropriate table on pages 61 and 62. There are different tables for (a) single or head of household, (b) married without spouse filing certificate, and (c) married with both spouses filing certificates. Find the advance EIC payment shown in the appropriate table for the amount of wages paid.
The tables on page 71 explain how to calculate additional withholding amounts for pension payments. The withholding amounts may be added to the amount of withholding determined from the percentage method, the wage bracket method, or any other allowable method. The percentage method, the wage bracket method, or other allowable method when combined with this procedure constitutes an allowable alternative withholding method for pensions and annuities.
This procedure is optional for those making pension payments subject to withholding under section 3405 of the Internal Revenue Code. The procedure is an approximate offset for the withholding reduction from the withholding tables on pages 41-60, which reflect the Making Work Pay credit. Eligibility for the credit requires earned income, which does not include pension payments.
Pension payors are not required to use this procedure but may instead continue to use only the withholding tables to determine the amount of withholding.
The procedure is shown on page 71 for Monthly, Semimonthly, Biweekly, and Weekly pension payments.
If pension payors decide to use this optional procedure, they should begin using it as of January 1, 2010.
The income tax withholding amounts in the Wage Bracket Tables (pages 41-60) have been rounded to whole-dollar amounts.
When employers use the Percentage Method (pages 39-40) or an alternative method of income tax withholding, the tax for the pay period may be rounded to the nearest dollar.
The Wage Bracket Tables for advance EIC payments (pages 63-69) have also been rounded to whole-dollar amounts. If you use the Tables for Percentage Method of Advance EIC Payments (pages 61-62), the payments may be rounded to the nearest dollar.
Tables for Percentage Method of Withholding
|
(For Wages Paid in 2010)
|
| TABLE 1—WEEKLY Payroll Period | |||||||||
| (a) SINGLE person (including head of household)— | (b) MARRIED person— | ||||||||
| If the amount of wages (after subtracting withholding allowances) is: | The amount of income tax to withhold is: |
If the amount of wages (after subtracting withholding allowances) is: | The amount of income tax to withhold is: |
||||||
| Not over $116 | $0 | Not over $264 | $0 | ||||||
| Over— | But not over— | of excess over— | Over— | But not over— | of excess over— | ||||
| $116 | —$200 | 10% | —$116 | $264 | —$471 | 10% | —$264 | ||
| $200 | —$693 | $8.40 plus 15% | —$200 | $471 | —$1,457 | $20.70 plus 15% | —$471 | ||
| $693 | —$1,302 | $82.35 plus 25% | —$693 | $1,457 | —$1,809 | $168.60 plus 25% | —$1,457 | ||
| $1,302 | —$1,624 | $234.60 plus 27% | —$1,302 | $1,809 | —$2,386 | $256.60 plus 27% | —$1,809 | ||
| $1,624 | —$1,687 | $321.54 plus 30% | —$1,624 | $2,386 | —$2,789 | $412.39 plus 25% | —$2,386 | ||
| $1,687 | —$3,344 | $340.44 plus 28% | —$1,687 | $2,789 | —$4,173 | $513.14 plus 28% | —$2,789 | ||
| $3,344 | —$7,225 | $804.40 plus 33% | —$3,344 | $4,173 | —$7,335 | $900.66 plus 33% | —$4,173 | ||
| $7,225 | $2,085.13 plus 35% | —$7,225 | $7,335 | $1,944.12 plus 35% | —$7,335 | ||||
| TABLE 2—BIWEEKLY Payroll Period | |||||||||
| (a) SINGLE person (including head of household)— | (b) MARRIED person— | ||||||||
| If the amount of wages (after subtracting withholding allowances) is: |
The amount of income tax to withhold is: |
If the amount of wages (after subtracting withholding allowances) is: |
The amount of income tax to withhold is: |
||||||
| Not over $233 | $0 | Not over $529 | $0 | ||||||
| Over— | But not over— | of excess over— | Over— | But not over— | of excess over— | ||||
| $233 | —$401 | 10% | —$233 | $529 | —$942 | 10% | —$529 | ||
| $401 | —$1,387 | $16.80 plus 15% | —$401 | $942 | —$2,913 | $41.30 plus 15% | —$942 | ||
| $1,387 | —$2,604 | $164.70 plus 25% | —$1,387 | $2,913 | —$3,617 | $336.95 plus 25% | —$2,913 | ||
| $2,604 | —$3,248 | $468.95 plus 27% | —$2,604 | $3,617 | —$4,771 | $512.95 plus 27% | —$3,617 | ||
| $3,248 | —$3,373 | $642.83 plus 30% | —$3,248 | $4,771 | —$5,579 | $824.53 plus 25% | —$4,771 | ||
| $3,373 | —$6,688 | $680.33 plus 28% | —$3,373 | $5,579 | —$8,346 | $1,026.53 plus 28% | —$5,579 | ||
| $6,688 | —$14,450 | $1,608.53 plus 33% | —$6,688 | $8,346 | —$14,669 | $1,801.29 plus 33% | —$8,346 | ||
| $14,450 | $4,169.99 plus 35% | —$14,450 | $14,669 | $3,887.88 plus 35% | —$14,669 | ||||
| TABLE 3—SEMIMONTHLY Payroll Period | |||||||||
| (a) SINGLE person (including head of household)— | (b) MARRIED person— | ||||||||
| If the amount of wages (after subtracting withholding allowances) is: | The amount of income tax to withhold is: |
If the amount of wages (after subtracting withholding allowances) is: | The amount of income tax to withhold is: |
||||||
| Not over $252 | $0 | Not over $573 | $0 | ||||||
| Over— | But not over— | of excess over— | Over— | But not over— | of excess over— | ||||
| $252 | —$434 | 10% | —$252 | $573 | —$1,021 | 10% | —$573 | ||
| $434 | —$1,502 | $18.20 plus 15% | —$434 | $1,021 | —$3,156 | $44.80 plus 15% | —$1,021 | ||
| $1,502 | —$2,821 | $178.40 plus 25% | —$1,502 | $3,156 | —$3,919 | $365.05 plus 25% | —$3,156 | ||
| $2,821 | —$3,519 | $508.15 plus 27% | —$2,821 | $3,919 | —$5,169 | $555.80 plus 27% | —$3,919 | ||
| $3,519 | —$3,654 | $696.61 plus 30% | —$3,519 | $5,169 | —$6,044 | $893.30 plus 25% | —$5,169 | ||
| $3,654 | —$7,246 | $737.11 plus 28% | —$3,654 | $6,044 | —$9,042 | $1,112.05 plus 28% | —$6,044 | ||
| $7,246 | —$15,654 | $1,742.87 plus 33% | —$7,246 | $9,042 | —$15,892 | $1,951.49 plus 33% | —$9,042 | ||
| $15,654 | $4,517.51 plus 35% | —$15,654 | $15,892 | $4,211.99 plus 35% | —$15,892 | ||||
| TABLE 4—MONTHLY Payroll Period | |||||||||
| (a) SINGLE person (including head of household)— | (b) MARRIED person— | ||||||||
| If the amount of wages (after subtracting withholding allowances) is: | The amount of income tax to withhold is: |
If the amount of wages (after subtracting withholding allowances) is: |
The amount of income tax to withhold is: |
||||||
| Not over $504 | $0 | Not over $1,146 | $0 | ||||||
| Over— | But not over— | of excess over— | Over— | But not over— | of excess over— | ||||
| $504 | —$869 | 10% | —$504 | $1,146 | —$2,042 | 10% | —$1,146 | ||
| $869 | —$3,004 | $36.50 plus 15% | —$869 | $2,042 | —$6,313 | $89.60 plus 15% | —$2,042 | ||
| $3,004 | —$5,642 | $356.75 plus 25% | —$3,004 | $6,313 | —$7,838 | $730.25 plus 25% | —$6,313 | ||
| $5,642 | —$7,038 | $1,016.25 plus 27% | —$5,642 | $7,838 | —$10,338 | $1,111.50 plus 27% | —$7,838 | ||
| $7,038 | —$7,308 | $1,393.17 plus 30% | —$7,038 | $10,338 | —$12,088 | $1,786.50 plus 25% | —$10,338 | ||
| $7,308 | —$14,492 | $1,474.17 plus 28% | —$7,308 | $12,088 | —$18,083 | $2,224.00 plus 28% | —$12,088 | ||
| $14,492 | —$31,308 | $3,485.69 plus 33% | —$14,492 | $18,083 | —$31,783 | $3,902.60 plus 33% | —$18,083 | ||
| $31,308 | $9,034.97 plus 35% | —$31,308 | $31,783 | $8,423.60 plus 35% | —$31,783 | ||||
Tables for Percentage Method of Withholding (continued)
|
(For Wages Paid in 2010)
|
| TABLE 5—QUARTERLY Payroll Period | |||||||||
| (a) SINGLE person (including head of household)— | (b) MARRIED person— | ||||||||
| If the amount of wages (after subtracting withholding allowances) is: | The amount of income tax to withhold is: |
If the amount of wages (after subtracting withholding allowances) is: | The amount of income tax to withhold is: |
||||||
| Not over $1,513 | $0 | Not over $3,438 | $0 | ||||||
| Over— | But not over— | of excess over— | Over— | But not over— | of excess over— | ||||
| $1,513 | —$2,606 | 10% | —$1,513 | $3,438 | —$6,125 | 10% | —$3,438 | ||
| $2,606 | —$9,013 | $109.30 plus 15% | —$2,606 | $6,125 | —$18,938 | $268.70 plus 15% | —$6,125 | ||
| $9,013 | —$16,925 | $1,070.35 plus 25% | —$9,013 | $18,938 | —$23,513 | $2,190.65 plus 25% | —$18,938 | ||
| $16,925 | —$21,113 | $3,048.35 plus 27% | —$16,925 | $23,513 | —$31,013 | $3,334.40 plus 27% | —$23,513 | ||
| $21,113 | —$21,925 | $4,179.11 plus 30% | —$21,113 | $31,013 | —$36,263 | $5,359.40 plus 25% | —$31,013 | ||
| $21,925 | —$43,475 | $4,422.71 plus 28% | —$21,925 | $36,263 | —$54,250 | $6,671.90 plus 28% | —$36,263 | ||
| $43,475 | —$93,925 | $10,456.71 plus 33% | —$43,475 | $54,250 | —$95,350 | $11,708.26 plus 33% | —$54,250 | ||
| $93,925 | $27,105.21 plus 35% | —$93,925 | $95,350 | $25,271.26 plus 35% | —$95,350 | ||||
| TABLE 6—SEMIANNUAL Payroll Period | |||||||||
| (a) SINGLE person (including head of household)— | (b) MARRIED person— | ||||||||
| If the amount of wages (after subtracting withholding allowances) is: | The amount of income tax to withhold is: |
If the amount of wages (after subtracting withholding allowances) is: |
The amount of income tax to withhold is: |
||||||
| Not over $3,025 | $0 | Not over $6,875 | $0 | ||||||
| Over— | But not over— | of excess over— | Over— | But not over— | of excess over— | ||||
| $3,025 | —$5,213 | 10% | —$3,025 | $6,875 | —$12,250 | 10% | —$6,875 | ||
| $5,213 | —$18,025 | $218.80 plus 15% | —$5,213 | $12,250 | —$37,875 | $537.50 plus 15% | —$12,250 | ||
| $18,025 | —$33,850 | $2,140.60 plus 25% | —$18,025 | $37,875 | —$47,025 | $4,381.25 plus 25% | —$37,875 | ||
| $33,850 | —$42,225 | $6,096.85 plus 27% | —$33,850 | $47,025 | —$62,025 | $6,668.75 plus 27% | —$47,025 | ||
| $42,225 | —$43,850 | $8,358.10 plus 30% | —$42,225 | $62,025 | —$72,525 | $10,718.75 plus 25% | —$62,025 | ||
| $43,850 | —$86,950 | $8,845.60 plus 28% | —$43,850 | $72,525 | —$108,500 | $13,343.75 plus 28% | —$72,525 | ||
| $86,950 | —$187,850 | $20,913.60 plus 33% | —$86,950 | $108,500 | —$190,700 | $23,416.75 plus 33% | —$108,500 | ||
| $187,850 | $54,210.60 plus 35% | —$187,850 | $190,700 | $50,542.75 plus 35% | —$190,700 | ||||
| TABLE 7—ANNUAL Payroll Period | |||||||||
| (a) SINGLE person (including head of household)— | (b) MARRIED person— | ||||||||
| If the amount of wages (after subtracting withholding allowances) is: | The amount of income tax to withhold is: |
If the amount of wages (after subtracting withholding allowances) is: |
The amount of income tax to withhold is: |
||||||
| Not over $6,050 | $0 | Not over $13,750 | $0 | ||||||
| Over— | But not over— | of excess over— | Over— | But not over— | of excess over— | ||||
| $6,050 | —$10,425 | 10% | —$6,050 | $13,750 | —$24,500 | 10% | —$13,750 | ||
| $10,425 | —$36,050 | $437.50 plus 15% | —$10,425 | $24,500 | —$75,750 | $1,075.00 plus 15% | —$24,500 | ||
| $36,050 | —$67,700 | $4,281.25 plus 25% | —$36,050 | $75,750 | —$94,050 | $8,762.50 plus 25% | —$75,750 | ||
| $67,700 | —$84,450 | $12,193.75 plus 27% | —$67,700 | $94,050 | —$124,050 | $13,337.50 plus 27% | —$94,050 | ||
| $84,450 | —$87,700 | $16,716.25 plus 30% | —$84,450 | $124,050 | —$145,050 | $21,437.50 plus 25% | —$124,050 | ||
| $87,700 | —$173,900 | $17,691.25 plus 28% | —$87,700 | $145,050 | —$217,000 | $26,687.50 plus 28% | —$145,050 | ||
| $173,900 | —$375,700 | $41,827.25 plus 33% | —$173,900 | $217,000 | —$381,400 | $46,833.50 plus 33% | —$217,000 | ||
| $375,700 | $108,421.25 plus 35% | —$375,700 | $381,400 | $101,085.50 plus 35% | —$381,400 | ||||
| TABLE 8—DAILY or MISCELLANEOUS Payroll Period | |||||||||
| (a) SINGLE person (including head of household)— | (b) MARRIED person— | ||||||||
| If the amount of wages (after subtracting withholding allowances) divided by the number of days in the payroll period is: | The amount of income tax to withhold per day is: |
If the amount of wages (after subtracting withholding allowances) divided by the number of days in the payroll period is: | The amount of income tax to withhold per day is: |
||||||
| Not over $23.30 | $0 | Not over $52.90 | $0 | ||||||
| Over— | But not over— | of excess over— | Over— | But not over— | of excess over— | ||||
| $23.30 | —$40.10 | 10% | —$23.30 | $52.90 | —$94.20 | 10% | —$52.90 | ||
| $40.10 | —$138.70 | $1.68 plus 15% | —$40.10 | $94.20 | —$291.30 | $4.13 plus 15% | —$94.20 | ||
| $138.70 | —$260.40 | $16.47 plus 25% | —$138.70 | $291.30 | —$361.70 | $33.70 plus 25% | —$291.30 | ||
| $260.40 | —$324.80 | $46.90 plus 27% | —$260.40 | $361.70 | —$477.10 | $51.30 plus 27% | —$361.70 | ||
| $324.80 | —$337.30 | $64.29 plus 30% | —$324.80 | $477.10 | —$557.90 | $82.46 plus 25% | —$477.10 | ||
| $337.30 | —$668.80 | $68.04 plus 28% | —$337.30 | $557.90 | —$834.60 | $102.66 plus 28% | —$557.90 | ||
| $668.80 | —$1,445.00 | $160.86 plus 33% | —$668.80 | $834.60 | —$1,466.90 | $180.14 plus 33% | —$834.60 | ||
| $1,445.00 | $417.01 plus 35% | —$1,445.00 | $1,466.90 | $388.80 plus 35% | —$1,466.90 | ||||
SINGLE Persons—WEEKLY Payroll Period (For Wages Paid Through December 2010)
| And the wages are– | And the number of withholding allowances claimed is— | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| At least | But less than | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
| The amount of income tax to be withheld is— | ||||||||||||
| $0 | $120 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| 120 | 125 | 1 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 125 | 130 | 1 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 130 | 135 | 2 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 135 | 140 | 2 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 140 | 145 | 3 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 145 | 150 | 3 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 150 | 155 | 4 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 155 | 160 | 4 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 160 | 165 | 5 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 165 | 170 | 5 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 170 | 175 | 6 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 175 | 180 | 6 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 180 | 185 | 7 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 185 | 190 | 7 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 190 | 195 | 8 | 1 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 195 | 200 | 8 | 1 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 200 | 210 | 9 | 2 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 210 | 220 | 11 | 3 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 220 | 230 | 12 | 4 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 230 | 240 | 14 | 5 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 240 | 250 | 15 | 6 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 250 | 260 | 17 | 7 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 260 | 270 | 18 | 8 | 1 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 270 | 280 | 20 | 9 | 2 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 280 | 290 | 21 | 11 | 3 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 290 | 300 | 23 | 12 | 4 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 300 | 310 | 24 | 14 | 5 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 310 | 320 | 26 | 15 | 6 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 320 | 330 | 27 | 17 | 7 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 330 | 340 | 29 | 18 | 8 | 1 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 340 | 350 | 30 | 20 | 9 | 2 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 350 | 360 | 32 | 21 | 11 | 3 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 360 | 370 | 33 | 23 | 12 | 4 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 370 | 380 | 35 | 24 | 14 | 5 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 380 | 390 | 36 | 26 | 15 | 6 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 390 | 400 | 38 | 27 | 17 | 7 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 400 | 410 | 39 | 29 | 18 | 8 | 1 | 0 | 0 | 0 | 0 | 0 | 0 |
| 410 | 420 | 41 | 30 | 20 | 9 | 2 | 0 | 0 | 0 | 0 | 0 | 0 |
| 420 | 430 | 42 | 32 | 21 | 11 | 3 | 0 | 0 | 0 | 0 | 0 | 0 |
| 430 | 440 | 44 | 33 | 23 | 12 | 4 | 0 | 0 | 0 | 0 | 0 | 0 |
| 440 | 450 | 45 | 35 | 24 | 14 | 5 | 0 | 0 | 0 | 0 | 0 | 0 |
| 450 | 460 | 47 | 36 | 26 | 15 | 6 | 0 | 0 | 0 | 0 | 0 | 0 |
| 460 | 470 | 48 | 38 | 27 | 17 | 7 | 0 | 0 | 0 | 0 | 0 | 0 |
| 470 | 480 | 50 | 39 | 29 | 18 | 8 | 1 | 0 | 0 | 0 | 0 | 0 |
| 480 | 490 | 51 | 41 | 30 | 20 | 9 | 2 | 0 | 0 | 0 | 0 | 0 |
| 490 | 500 | 53 | 42 | 32 | 21 | 10 | 3 | 0 | 0 | 0 | 0 | 0 |
| 500 | 510 | 54 | 44 | 33 | 23 | 12 | 4 | 0 | 0 | 0 | 0 | 0 |
| 510 | 520 | 56 | 45 | 35 | 24 | 13 | 5 | 0 | 0 | 0 | 0 | 0 |
| 520 | 530 | 57 | 47 | 36 | 26 | 15 | 6 | 0 | 0 | 0 | 0 | 0 |
| 530 | 540 | 59 | 48 | 38 | 27 | 16 | 7 | 0 | 0 | 0 | 0 | 0 |
| 540 | 550 | 60 | 50 | 39 | 29 | 18 | 8 | 1 | 0 | 0 | 0 | 0 |
| 550 | 560 | 62 | 51 | 41 | 30 | 19 | 9 | 2 | 0 | 0 | 0 | 0 |
| 560 | 570 | 63 | 53 | 42 | 32 | 21 | 10 | 3 | 0 | 0 | 0 | 0 |
| 570 | 580 | 65 | 54 | 44 | 33 | 22 | 12 | 4 | 0 | 0 | 0 | 0 |
| 580 | 590 | 66 | 56 | 45 | 35 | 24 | 13 | 5 | 0 | 0 | 0 | 0 |
| 590 | 600 | 68 | 57 | 47 | 36 | 25 | 15 | 6 | 0 | 0 | 0 | 0 |
| 600 | 610 | 69 | 59 | 48 | 38 | 27 | 16 | 7 | 0 | 0 | 0 | 0 |
| 610 | 620 | 71 | 60 | 50 | 39 | 28 | 18 | 8 | 1 | 0 | 0 | 0 |
| 620 | 630 | 72 | 62 | 51 | 41 | 30 | 19 | 9 | 2 | 0 | 0 | 0 |
| 630 | 640 | 74 | 63 | 53 | 42 | 31 | 21 | 10 | 3 | 0 | 0 | 0 |
| 640 | 650 | 75 | 65 | 54 | 44 | 33 | 22 | 12 | 4 | 0 | 0 | 0 |
| 650 | 660 | 77 | 66 | 56 | 45 | 34 | 24 | 13 | 5 | 0 | 0 | 0 |
| 660 | 670 | 78 | 68 | 57 | 47 | 36 | 25 | 15 | 6 | 0 | 0 | 0 |
| 670 | 680 | 80 | 69 | 59 | 48 | 37 | 27 | 16 | 7 | 0 | 0 | 0 |
| 680 | 690 | 81 | 71 | 60 | 50 | 39 | 28 | 18 | 8 | 1 | 0 | 0 |
| 690 | 700 | 83 | 72 | 62 | 51 | 40 | 30 | 19 | 9 | 2 | 0 | 0 |
| 700 | 710 | 85 | 74 | 63 | 53 | 42 | 31 | 21 | 10 | 3 | 0 | 0 |
| 710 | 720 | 88 | 75 | 65 | 54 | 43 | 33 | 22 | 12 | 4 | 0 | 0 |
| 720 | 730 | 90 | 77 | 66 | 56 | 45 | 34 | 24 | 13 | 5 | 0 | 0 |
| 730 | 740 | 93 | 78 | 68 | 57 | 46 | 36 | 25 | 15 | 6 | 0 | 0 |
| 740 | 750 | 95 | 80 | 69 | 59 | 48 | 37 | 27 | 16 | 7 | 0 | 0 |
| 750 | 760 | 98 | 81 | 71 | 60 | 49 | 39 | 28 | 18 | 8 | 1 | 0 |
| 760 | 770 | 100 | 83 | 72 | 62 | 51 | 40 | 30 | 19 | 9 | 2 | 0 |
| 770 | 780 | 103 | 85 | 74 | 63 | 52 | 42 | 31 | 21 | 10 | 3 | 0 |
| 780 | 790 | 105 | 88 | 75 | 65 | 54 | 43 | 33 | 22 | 12 | 4 | 0 |
| 790 | 800 | 108 | 90 | 77 | 66 | 55 | 45 | 34 | 24 | 13 | 5 | 0 |
| 800 | 810 | 110 | 93 | 78 | 68 | 57 | 46 | 36 | 25 | 15 | 6 | 0 |
| 810 | 820 | 113 | 95 | 80 | 69 | 58 | 48 | 37 | 27 | 16 | 7 | 0 |
| 820 | 830 | 115 | 98 | 81 | 71 | 60 | 49 | 39 | 28 | 18 | 8 | 1 |
| 830 | 840 | 118 | 100 | 83 | 72 | 61 | 51 | 40 | 30 | 19 | 9 | 2 |
| 840 | 850 | 120 | 103 | 85 | 74 | 63 | 52 | 42 | 31 | 21 | 10 | 3 |
| 850 | 860 | 123 | 105 | 88 | 75 | 64 | 54 | 43 | 33 | 22 | 12 | 4 |
| 860 | 870 | 125 | 108 | 90 | 77 | 66 | 55 | 45 | 34 | 24 | 13 | 5 |
| 870 | 880 | 128 | 110 | 93 | 78 | 67 | 57 | 46 | 36 | 25 | 15 | 6 |
| $880 | $890 | $130 | $113 | $95 | $80 | $69 | $58 | $48 | $37 | $27 | $16 | $7 |
| 890 | 900 | 133 | 115 | 98 | 81 | 70 | 60 | 49 | 39 | 28 | 18 | 8 |
| 900 | 910 | 135 | 118 | 100 | 83 | 72 | 61 | 51 | 40 | 30 | 19 | 9 |
| 910 | 920 | 138 | 120 | 103 | 85 | 73 | 63 | 52 | 42 | 31 | 21 | 10 |
| 920 | 930 | 140 | 123 | 105 | 88 | 75 | 64 | 54 | 43 | 33 | 22 | 12 |
| 930 | 940 | 143 | 125 | 108 | 90 | 76 | 66 | 55 | 45 | 34 | 24 | 13 |
| 940 | 950 | 145 | 128 | 110 | 93 | 78 | 67 | 57 | 46 | 36 | 25 | 15 |
| 950 | 960 | 148 | 130 | 113 | 95 | 79 | 69 | 58 | 48 | 37 | 27 | 16 |
| 960 | 970 | 150 | 133 | 115 | 98 | 81 | 70 | 60 | 49 | 39 | 28 | 18 |
| 970 | 980 | 153 | 135 | 118 | 100 | 83 | 72 | 61 | 51 | 40 | 30 | 19 |
| 980 | 990 | 155 | 138 | 120 | 103 | 85 | 73 | 63 | 52 | 42 | 31 | 21 |
| 990 | 1000 | 158 | 140 | 123 | 105 | 88 | 75 | 64 | 54 | 43 | 33 | 22 |
| 1000 | 1010 | 160 | 143 | 125 | 108 | 90 | 76 | 66 | 55 | 45 | 34 | 24 |
| 1010 | 1020 | 163 | 145 | 128 | 110 | 93 | 78 | 67 | 57 | 46 | 36 | 25 |
| 1020 | 1030 | 165 | 148 | 130 | 113 | 95 | 79 | 69 | 58 | 48 | 37 | 27 |
| 1030 | 1040 | 168 | 150 | 133 | 115 | 98 | 81 | 70 | 60 | 49 | 39 | 28 |
| 1040 | 1050 | 170 | 153 | 135 | 118 | 100 | 83 | 72 | 61 | 51 | 40 | 30 |
| 1050 | 1060 | 173 | 155 | 138 | 120 | 103 | 85 | 73 | 63 | 52 | 42 | 31 |
| 1060 | 1070 | 175 | 158 | 140 | 123 | 105 | 88 | 75 | 64 | 54 | 43 | 33 |
| 1070 | 1080 | 178 | 160 | 143 | 125 | 108 | 90 | 76 | 66 | 55 | 45 | 34 |
| 1080 | 1090 | 180 | 163 | 145 | 128 | 110 | 93 | 78 | 67 | 57 | 46 | 36 |
| 1090 | 1100 | 183 | 165 | 148 | 130 | 113 | 95 | 79 | 69 | 58 | 48 | 37 |
| 1100 | 1110 | 185 | 168 | 150 | 133 | 115 | 98 | 81 | 70 | 60 | 49 | 39 |
| 1110 | 1120 | 188 | 170 | 153 | 135 | 118 | 100 | 82 | 72 | 61 | 51 | 40 |
| 1120 | 1130 | 190 | 173 | 155 | 138 | 120 | 103 | 85 | 73 | 63 | 52 | 42 |
| 1130 | 1140 | 193 | 175 | 158 | 140 | 123 | 105 | 87 | 75 | 64 | 54 | 43 |
| 1140 | 1150 | 195 | 178 | 160 | 143 | 125 | 108 | 90 | 76 | 66 | 55 | 45 |
| 1150 | 1160 | 198 | 180 | 163 | 145 | 128 | 110 | 92 | 78 | 67 | 57 | 46 |
| 1160 | 1170 | 200 | 183 | 165 | 148 | 130 | 113 | 95 | 79 | 69 | 58 | 48 |
| 1170 | 1180 | 203 | 185 | 168 | 150 | 133 | 115 | 97 | 81 | 70 | 60 | 49 |
| 1180 | 1190 | 205 | 188 | 170 | 153 | 135 | 118 | 100 | 82 | 72 | 61 | 51 |
| 1190 | 1200 | 208 | 190 | 173 | 155 | 138 | 120 | 102 | 85 | 73 | 63 | 52 |
| 1200 | 1210 | 210 | 193 | 175 | 158 | 140 | 123 | 105 | 87 | 75 | 64 | 54 |
| 1210 | 1220 | 213 | 195 | 178 | 160 | 143 | 125 | 107 | 90 | 76 | 66 | 55 |
| 1220 | 1230 | 215 | 198 | 180 | 163 | 145 | 128 | 110 | 92 | 78 | 67 | 57 |
| 1230 | 1240 | 218 | 200 | 183 | 165 | 148 | 130 | 112 | 95 | 79 | 69 | 58 |
| 1240 | 1250 | 220 | 203 | 185 | 168 | 150 | 133 | 115 | 97 | 81 | 70 | 60 |
| $1250 and over | Use Table 1(a) for a SINGLE person on page 39. Also see the instructions on page 37. | |||||||||||
MARRIED Persons—WEEKLY Payroll Period (For Wages Paid Through December 2010)
| And the wages are– | And the number of withholding allowances claimed is— | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| At least | But less than | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
| The amount of income tax to be withheld is— | ||||||||||||
| $0 | $270 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| 270 | 280 | 1 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 280 | 290 | 2 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 290 | 300 | 3 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 300 | 310 | 4 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 310 | 320 | 5 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 320 | 330 | 6 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 330 | 340 | 7 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 340 | 350 | 8 | 1 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 350 | 360 | 9 | 2 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 360 | 370 | 10 | 3 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 370 | 380 | 11 | 4 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 380 | 390 | 12 | 5 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 390 | 400 | 13 | 6 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 400 | 410 | 14 | 7 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 410 | 420 | 15 | 8 | 1 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 420 | 430 | 16 | 9 | 2 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 430 | 440 | 17 | 10 | 3 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 440 | 450 | 18 | 11 | 4 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 450 | 460 | 19 | 12 | 5 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 460 | 470 | 20 | 13 | 6 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 470 | 480 | 21 | 14 | 7 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 480 | 490 | 23 | 15 | 8 | 1 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 490 | 500 | 24 | 16 | 9 | 2 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 500 | 510 | 26 | 17 | 10 | 3 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 510 | 520 | 27 | 18 | 11 | 4 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 520 | 530 | 29 | 19 | 12 | 5 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 530 | 540 | 30 | 20 | 13 | 6 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 540 | 550 | 32 | 21 | 14 | 7 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 550 | 560 | 33 | 23 | 15 | 8 | 1 | 0 | 0 | 0 | 0 | 0 | 0 |
| 560 | 570 | 35 | 24 | 16 | 9 | 2 | 0 | 0 | 0 | 0 | 0 | 0 |
| 570 | 580 | 36 | 26 | 17 | 10 | 3 | 0 | 0 | 0 | 0 | 0 | 0 |
| 580 | 590 | 38 | 27 | 18 | 11 | 4 | 0 | 0 | 0 | 0 | 0 | 0 |
| 590 | 600 | 39 | 29 | 19 | 12 | 5 | 0 | 0 | 0 | 0 | 0 | 0 |
| 600 | 610 | 41 | 30 | 20 | 13 | 6 | 0 | 0 | 0 | 0 | 0 | 0 |
| 610 | 620 | 42 | 32 | 21 | 14 | 7 | 0 | 0 | 0 | 0 | 0 | 0 |
| 620 | 630 | 44 | 33 | 23 | 15 | 8 | 1 | 0 | 0 | 0 | 0 | 0 |
| 630 | 640 | 45 | 35 | 24 | 16 | 9 | 2 | 0 | 0 | 0 | 0 | 0 |
| 640 | 650 | 47 | 36 | 26 | 17 | 10 | 3 | 0 | 0 | 0 | 0 | 0 |
| 650 | 660 | 48 | 38 | 27 | 18 | 11 | 4 | 0 | 0 | 0 | 0 | 0 |
| 660 | 670 | 50 | 39 | 29 | 19 | 12 | 5 | 0 | 0 | 0 | 0 | 0 |
| 670 | 680 | 51 | 41 | 30 | 20 | 13 | 6 | 0 | 0 | 0 | 0 | 0 |
| 680 | 690 | 53 | 42 | 32 | 21 | 14 | 7 | 0 | 0 | 0 | 0 | 0 |
| 690 | 700 | 54 | 44 | 33 | 23 | 15 | 8 | 1 | 0 | 0 | 0 | 0 |
| 700 | 710 | 56 | 45 | 35 | 24 | 16 | 9 | 2 | 0 | 0 | 0 | 0 |
| 710 | 720 | 57 | 47 | 36 | 26 | 17 | 10 | 3 | 0 | 0 | 0 | 0 |
| 720 | 730 | 59 | 48 | 38 | 27 | 18 | 11 | 4 | 0 | 0 | 0 | 0 |
| 730 | 740 | 60 | 50 | 39 | 29 | 19 | 12 | 5 | 0 | 0 | 0 | 0 |
| 740 | 750 | 62 | 51 | 41 | 30 | 20 | 13 | 6 | 0 | 0 | 0 | 0 |
| 750 | 760 | 63 | 53 | 42 | 32 | 21 | 14 | 7 | 0 | 0 | 0 | 0 |
| 760 | 770 | 65 | 54 | 44 | 33 | 23 | 15 | 8 | 1 | 0 | 0 | 0 |
| 770 | 780 | 66 | 56 | 45 | 35 | 24 | 16 | 9 | 2 | 0 | 0 | 0 |
| 780 | 790 | 68 | 57 | 47 | 36 | 26 | 17 | 10 | 3 | 0 | 0 | 0 |
| 790 | 800 | 69 | 59 | 48 | 38 | 27 | 18 | 11 | 4 | 0 | 0 | 0 |
| 800 | 810 | 71 | 60 | 50 | 39 | 29 | 19 | 12 | 5 | 0 | 0 | 0 |
| 810 | 820 | 72 | 62 | 51 | 41 | 30 | 20 | 13 | 6 | 0 | 0 | 0 |
| 820 | 830 | 74 | 63 | 53 | 42 | 32 | 21 | 14 | 7 | 0 | 0 | 0 |
| 830 | 840 | 75 | 65 | 54 | 44 | 33 | 23 | 15 | 8 | 1 | 0 | 0 |
| 840 | 850 | 77 | 66 | 56 | 45 | 35 | 24 | 16 | 9 | 2 | 0 | 0 |
| 850 | 860 | 78 | 68 | 57 | 47 | 36 | 26 | 17 | 10 | 3 | 0 | 0 |
| 860 | 870 | 80 | 69 | 59 | 48 | 38 | 27 | 18 | 11 | 4 | 0 | 0 |
| 870 | 880 | 81 | 71 | 60 | 50 | 39 | 29 | 19 | 12 | 5 | 0 | 0 |
| 880 | 890 | 83 | 72 | 62 | 51 | 41 | 30 | 20 | 13 | 6 | 0 | 0 |
| 890 | 900 | 84 | 74 | 63 | 53 | 42 | 32 | 21 | 14 | 7 | 0 | 0 |
| 900 | 910 | 86 | 75 | 65 | 54 | 44 | 33 | 23 | 15 | 8 | 1 | 0 |
| 910 | 920 | 87 | 77 | 66 | 56 | 45 | 35 | 24 | 16 | 9 | 2 | 0 |
| 920 | 930 | 89 | 78 | 68 | 57 | 47 | 36 | 26 | 17 | 10 | 3 | 0 |
| 930 | 940 | 90 | 80 | 69 | 59 | 48 | 38 | 27 | 18 | 11 | 4 | 0 |
| 940 | 950 | 92 | 81 | 71 | 60 | 50 | 39 | 29 | 19 | 12 | 5 | 0 |
| 950 | 960 | 93 | 83 | 72 | 62 | 51 | 41 | 30 | 20 | 13 | 6 | 0 |
| 960 | 970 | 95 | 84 | 74 | 63 | 53 | 42 | 32 | 21 | 14 | 7 | 0 |
| 970 | 980 | 96 | 86 | 75 | 65 | 54 | 44 | 33 | 23 | 15 | 8 | 1 |
| 980 | 990 | 98 | 87 | 77 | 66 | 56 | 45 | 35 | 24 | 16 | 9 | 2 |
| 990 | 1000 | 99 | 89 | 78 | 68 | 57 | 47 | 36 | 26 | 17 | 10 | 3 |
| 1000 | 1010 | 101 | 90 | 80 | 69 | 59 | 48 | 38 | 27 | 18 | 11 | 4 |
| 1010 | 1020 | 102 | 92 | 81 | 71 | 60 | 50 | 39 | 29 | 19 | 12 | 5 |
| 1020 | 1030 | 104 | 93 | 83 | 72 | 62 | 51 | 41 | 30 | 20 | 13 | 6 |
| 1030 | 1040 | 105 | 95 | 84 | 74 | 63 | 53 | 42 | 32 | 21 | 14 | 7 |
| 1040 | 1050 | 107 | 96 | 86 | 75 | 65 | 54 | 44 | 33 | 23 | 15 | 8 |
| 1050 | 1060 | 108 | 98 | 87 | 77 | 66 | 56 | 45 | 35 | 24 | 16 | 9 |
| 1060 | 1070 | 110 | 99 | 89 | 78 | 68 | 57 | 47 | 36 | 26 | 17 | 10 |
| 1070 | 1080 | 111 | 101 | 90 | 80 | 69 | 59 | 48 | 38 | 27 | 18 | 11 |
| 1080 | 1090 | 113 | 102 | 92 | 81 | 71 | 60 | 50 | 39 | 29 | 19 | 12 |
| 1090 | 1100 | 114 | 104 | 93 | ||||||||







