Table of Contents
 1. Who Are Employees?
 2. Employee or Independent Contractor?
 3. Employees of Exempt Organizations
 4. Religious Exemptions and Special Rules for Ministers
 5. Wages and Other Compensation
 Relocating for Temporary Work Assignments
 Employee Achievement Awards
 Scholarship and Fellowship Payments
 Outplacement Services
 Withholding for Idle Time
 Back Pay
 Supplemental Unemployment Compensation Benefits
 Golden Parachute Payments
 InterestFree and BelowMarketInterestRate Loans
 Leave Sharing Plans
 Nonqualified Deferred Compensation Plans
 TaxSheltered Annuities
 Contributions to a Simplified Employee Pension (SEP)
 SIMPLE Retirement Plans
 6. Sick Pay Reporting
 7. Special Rules for Paying Taxes
 8. Pensions and Annuities
 9. Alternative Methods for Figuring Withholding
 Formula Tables for Percentage Method Withholding (for Automated Payroll Systems)
 Wage Bracket Percentage Method Tables (for Automated Payroll Systems)
 Combined Federal Income Tax, Employee Social Security Tax, and Employee Medicare Tax Withholding Tables
 10. Tables for Withholding on Distributions of Indian Gaming Profits to Tribal Members
 How To Get Tax Help
Before you can know how to treat payments that you make to workers for services, you must first know the business relationship that exists between you and the person performing the services. The person performing the services may be:

An independent contractor,

A commonlaw employee,

A statutory employee, or

A statutory nonemployee.
This discussion explains these four categories. A later discussion, Employee or Independent Contractor in section 2, points out the differences between an independent contractor and an employee and gives examples from various types of occupations.
If an individual who works for you isn't an employee under the commonlaw rules (see section 2), you generally don't have to withhold federal income tax from that individual's pay. However, in some cases you may be required to withhold under the backup withholding requirements on these payments. See Pub. 15 for information on backup withholding.
People such as doctors, veterinarians, and auctioneers who follow an independent trade, business, or profession in which they offer their services to the public, are generally not employees. However, whether such people are employees or independent contractors depends on the facts in each case. The general rule is that an individual is an independent contractor if you, the person for whom the services are performed, have the right to control or direct only the result of the work and not the means and methods of accomplishing the result.
Under commonlaw rules, anyone who performs services for you is generally your employee if you have the right to control what will be done and how it will be done. This is so even when you give the employee freedom of action. What matters is that you have the right to control the details of how the services are performed. For a discussion of facts that indicate whether an individual providing services is an independent contractor or employee, see section 2.
If you have an employeremployee relationship, it makes no difference how it is labeled. The substance of the relationship, not the label, governs the worker's status. It doesn't matter whether the individual is employed full time or part time.
For employment tax purposes, no distinction is made between classes of employees. Superintendents, managers, and other supervisory personnel are all employees. An officer of a corporation is generally an employee; however, an officer who performs no services or only minor services, and neither receives nor is entitled to receive any pay, isn't considered an employee. A director of a corporation isn't an employee with respect to services performed as a director.
You generally have to withhold and pay income, social security, and Medicare taxes on wages that you pay to commonlaw employees. However, the wages of certain employees may be exempt from one or more of these taxes. See Employees of Exempt Organizations (section 3) and Religious Exemptions and Special Rules for Ministers (section 4).
If workers are independent contractors under the common law rules, such workers may nevertheless be treated as employees by statute, (also known as “statutory employees”) for certain employment tax purposes. This would happen if they fall within any one of the following four categories and meet the three conditions described next under Social security and Medicare taxes .

A driver who distributes beverages (other than milk) or meat, vegetable, fruit, or bakery products; or who picks up and delivers laundry or dry cleaning, if the driver is your agent or is paid on commission.

A fulltime life insurance sales agent whose principal business activity is selling life insurance or annuity contracts, or both, primarily for one life insurance company.

An individual who works at home on materials or goods that you supply and that must be returned to you or to a person you name, if you also furnish specifications for the work to be done.

A fulltime traveling or city salesperson who works on your behalf and turns in orders to you from wholesalers, retailers, contractors, or operators of hotels, restaurants, or other similar establishments. The goods sold must be merchandise for resale or supplies for use in the buyer's business operation. The work performed for you must be the salesperson's principal business activity. See Salesperson in section 2.

The service contract states or implies that substantially all the services are to be performed personally by them.

They don't have a substantial investment in the equipment and property used to perform the services (other than an investment in facilities for transportation, such as a car or truck).

The services are performed on a continuing basis for the same payer.
There are three categories of statutory nonemployees: direct sellers, licensed real estate agents, and certain companion sitters. Direct sellers and licensed real estate agents are treated as selfemployed for all federal tax purposes, including income and employment taxes, if:

Substantially all payments for their services as direct sellers or real estate agents are directly related to sales or other output, rather than to the number of hours worked, and

Their services are performed under a written contract providing that they won't be treated as employees for federal tax purposes.

Persons engaged in selling (or soliciting the sale of) consumer products in the home or place of business other than in a permanent retail establishment.

Persons engaged in selling (or soliciting the sale of) consumer products to any buyer on a buysell basis, a depositcommission basis, or any similar basis prescribed by regulations, for resale in the home or at a place of business other than in a permanent retail establishment.

Persons engaged in the trade or business of delivering or distributing newspapers or shopping news (including any services directly related to such delivery or distribution).

Is performing the services for a section 501(c) organization exempt from tax under section 501(a) of the code, and

Isn't otherwise treated as an employee of the organization for employment taxes.
An employer must generally withhold federal income taxes, withhold and pay over social security and Medicare taxes, and pay unemployment tax on wages paid to an employee. An employer doesn't generally have to withhold or pay over any federal taxes on payments to independent contractors.
To determine whether an individual is an employee or an independent contractor under the common law, the relationship of the worker and the business must be examined. In any employeeindependent contractor determination, all information that provides evidence of the degree of control and the degree of independence must be considered.
Facts that provide evidence of the degree of control and independence fall into three categories: behavioral control, financial control, and the type of relationship of the parties. These facts are discussed next.

When and where to do the work.

What tools or equipment to use.

What workers to hire or to assist with the work.

Where to purchase supplies and services.

What work must be performed by a specified
individual. 
What order or sequence to follow.

Written contracts describing the relationship the parties intended to create.

Whether or not the business provides the worker with employeetype benefits, such as insurance, a pension plan, vacation pay, or sick pay.

The permanency of the relationship. If you engage a worker with the expectation that the relationship will continue indefinitely, rather than for a specific project or period, this is generally considered evidence that your intent was to create an employeremployee relationship.

The extent to which services performed by the worker are a key aspect of the regular business of the company. If a worker provides services that are a key aspect of your regular business activity, it is more likely that you’ll have the right to direct and control his or her activities. For example, if a law firm hires an attorney, it is likely that it will present the attorney's work as its own and would have the right to control or direct that work. This would indicate an employeremployee relationship.
The following examples may help you properly classify your workers.
Example 1.
Jerry Jones has an agreement with Wilma White to supervise the remodeling of her house. She didn't advance funds to help him carry on the work. She makes direct payments to the suppliers for all necessary materials. She carries liability and workers' compensation insurance covering Jerry and others that he engaged to assist him. She pays them an hourly rate and exercises almost constant supervision over the work. Jerry isn't free to transfer his assistants to other jobs. He may not work on other jobs while working for Wilma. He assumes no responsibility to complete the work and will incur no contractual liability if he fails to do so. He and his assistants perform personal services for hourly wages. Jerry Jones and his assistants are employees of Wilma White.
Example 2.
Milton Manning, an experienced tile setter, orally agreed with a corporation to perform fulltime services at construction sites. He uses his own tools and performs services in the order designated by the corporation and according to its specifications. The corporation supplies all materials, makes frequent inspections of his work, pays him on a piecework basis, and carries workers' compensation insurance on him. He doesn't have a place of business or hold himself out to perform similar services for others. Either party can end the services at any time. Milton Manning is an employee of the corporation.
Example 3.
Wallace Black agreed with the Sawdust Co. to supply the construction labor for a group of houses. The company agreed to pay all construction costs. However, he supplies all the tools and equipment. He performs personal services as a carpenter and mechanic for an hourly wage. He also acts as superintendent and foreman and engages other individuals to assist him. The company has the right to select, approve, or discharge any helper. A company representative makes frequent inspections of the construction site. When a house is finished, Wallace is paid a certain percentage of its costs. He isn't responsible for faults, defects of construction, or wasteful operation. At the end of each week, he presents the company with a statement of the amount that he has spent, including the payroll. The company gives him a check for that amount from which he pays the assistants, although he isn't personally liable for their wages. Wallace Black and his assistants are employees of the Sawdust Co.
Example 4.
Bill Plum contracted with Elm Corporation to complete the roofing on a housing complex. A signed contract established a flat amount for the services rendered by Bill Plum. Bill is a licensed roofer and carries workers' compensation and liability insurance under the business name, Plum Roofing. He hires his own roofers who are treated as employees for federal employment tax purposes. If there is a problem with the roofing work, Plum Roofing is responsible for paying for any repairs. Bill Plum, doing business as Plum Roofing, is an independent contractor.
Example 5.
Vera Elm, an electrician, submitted a job estimate to a housing complex for electrical work at $16 per hour for 400 hours. She is to receive $1,280 every 2 weeks for the next 10 weeks. This isn't considered payment by the hour. Even if she works more or less than 400 hours to complete the work, Vera Elm will receive $6,400. She also performs additional electrical installations under contracts with other companies, that she obtained through advertisements. Vera is an independent contractor.
Example.
Rose Trucking contracts to deliver material for Forest, Inc., at $140 per ton. Rose Trucking isn't paid for any articles that aren't delivered. At times, Jan Rose, who operates as Rose Trucking, may also lease another truck and engage a driver to complete the contract. All operating expenses, including insurance coverage, are paid by Jan Rose. All equipment is owned or rented by Jan and she is responsible for all maintenance. None of the drivers are provided by Forest, Inc. Jan Rose, operating as Rose Trucking, is an independent contractor.
Example.
Steve Smith, a computer programmer, is laid off when Megabyte, Inc., downsizes. Megabyte agrees to pay Steve a flat amount to complete a onetime project to create a certain product. It isn't clear how long that it will take to complete the project, and Steve isn't guaranteed any minimum payment for the hours spent on the program. Megabyte provides Steve with no instructions beyond the specifications for the product itself. Steve and Megabyte have a written contract, which provides that Steve is considered to be an independent contractor, is required to pay federal and state taxes, and receives no benefits from Megabyte. Megabyte will file Form 1099MISC, Miscellaneous Income, to report the amount paid to Steve. Steve works at home and isn't expected or allowed to attend meetings of the software development group. Steve is an independent contractor.
Example 1.
Donna Lee is a salesperson employed on a fulltime basis by Bob Blue, an auto dealer. She works six days a week and is on duty in Bob's showroom on certain assigned days and times. She appraises tradeins, but her appraisals are subject to the sales manager's approval. Lists of prospective customers belong to the dealer. She is required to develop leads and report results to the sales manager. Because of her experience, she requires only minimal assistance in closing and financing sales and in other phases of her work. She is paid a commission and is eligible for prizes and bonuses offered by Bob. Bob also pays the cost of health insurance and groupterm life insurance for Donna. Donna is an employee of Bob Blue.
Example 2.
Sam Sparks performs auto repair services in the repair department of an auto sales company. He works regular hours and is paid on a percentage basis. He has no investment in the repair department. The sales company supplies all facilities, repair parts, and supplies; issues instructions on the amounts to be charged, parts to be used, and the time for completion of each job; and checks all estimates and repair orders. Sam is an employee of the sales company.
Example 3.
An auto sales agency furnishes space for Helen Bach to perform auto repair services. She provides her own tools, equipment, and supplies. She seeks out business from insurance adjusters and other individuals and does all of the body and paint work that comes to the agency. She hires and discharges her own helpers, determines her own and her helpers' working hours, quotes prices for repair work, makes all necessary adjustments, assumes all losses from uncollectible accounts, and receives, as compensation for her services, a large percentage of the gross collections from the auto repair shop. Helen is an independent contractor and the helpers are her employees.
Example.
Donna Yuma is a sole practitioner who rents office space and pays for the following items: telephone, computer, online legal research linkup, fax machine, and photocopier. Donna buys office supplies and pays bar dues and membership dues for three other professional organizations. Donna has a parttime receptionist who also does the bookkeeping. She pays the receptionist, withholds and pays federal and state employment taxes, and files a Form W2 each year. For the past 2 years, Donna has had only three clients, corporations with which there have been longstanding relationships. Donna charges the corporations an hourly rate for her services, sending monthly bills detailing the work performed for the prior month. The bills include charges for long distance calls, online research time, fax charges, photocopies, postage, and travel, costs for which the corporations have agreed to reimburse her. Donna is an independent contractor.
Example.
Tom Spruce rents a cab from Taft Cab Co. for $150 per day. He pays the costs of maintaining and operating the cab. Tom Spruce keeps all fares that he receives from customers. Although he receives the benefit of Taft's twoway radio communication equipment, dispatcher, and advertising, these items benefit both Taft and Tom Spruce. Tom Spruce is an independent contractor.
To determine whether salespersons are employees under the usual commonlaw rules, you must evaluate each individual case. If a salesperson who works for you doesn't meet the tests for a commonlaw employee, discussed earlier in this section, you don't have to withhold federal income tax from his or her pay (see Statutory Employees in section 1). However, even if a salesperson isn't an employee under the usual commonlaw rules for income tax withholding, his or her pay may still be subject to social security, Medicare, and FUTA taxes as a statutory employee.
To determine whether a salesperson is an employee for social security, Medicare, and FUTA tax purposes, the salesperson must meet all eight elements of the statutory employee test. A salesperson is a statutory employee for social security, Medicare, and FUTA tax purposes if he or she:

Works full time for one person or company except, possibly, for sideline sales activities on behalf of some other person,

Sells on behalf of, and turns his or her orders over to, the person or company for which he or she works,

Sells to wholesalers, retailers, contractors, or operators of hotels, restaurants, or similar establishments,

Sells merchandise for resale, or supplies for use in the customer's business,

Agrees to do substantially all of this work personally,

Has no substantial investment in the facilities used to do the work, other than in facilities for transportation,

Maintains a continuing relationship with the person or company for which he or she works, and

Isn't an employee under commonlaw rules.
Many nonprofit organizations are exempt from federal income tax. Although they don't have to pay federal income tax themselves, they must still withhold federal income tax from the pay of their employees. However, there are special social security, Medicare, and FUTA tax rules that apply to the wages that they pay their employees.

The organization pays an employee less than $100 in a calendar year.

The organization is a church or churchcontrolled organization opposed for religious reasons to the payment of social security and Medicare taxes and has filed Form 8274 to elect exemption from social security and Medicare taxes. The organization must have filed for exemption before the first date on which a quarterly employment tax return (Form 941) or annual employment tax return (Form 944) would otherwise be due.

If an employee is paid less than $100 during a calendar year, his or her wages aren't subject to social security and Medicare taxes.

If an employee is paid less than $50 in a calendar quarter, his or her wages aren't subject to FUTA tax for the quarter.
Special rules apply to the treatment of ministers for social security and Medicare tax purposes. An exemption from social security and Medicare taxes is available for ministers and certain other religious workers and members of certain recognized religious sects. For more information on getting an exemption, see Pub. 517.
Pub. 15 provides a general discussion of taxable wages. Pub. 15B discusses fringe benefits. The following topics supplement those discussions.
If an employee is given a temporary work assignment away from his or her regular place of work, certain travel expenses reimbursed or paid directly by the employer in accordance with an accountable plan (see section 5 in Pub. 15) may be excludable from the employee's wages. Generally, a temporary work assignment in a single location is one that is realistically expected to last (and does in fact last) for 1 year or less. If the employee's new work assignment is indefinite, any living expenses reimbursed or paid by the employer (other than qualified moving expenses) must be included in the employee's wages as compensation. For the travel expenses to be excludable:

The new work location must be outside of the city or general area of the employee's regular work place or post of duty,

The travel expenses must otherwise qualify as deductible by the employee, and

The expenses must be for the period during which the employee is at the temporary work location.
If you reimburse or pay any personal expenses of an employee during his or her temporary work assignment, such as expenses for home leave for family members or for vacations, these amounts must be included in the employee's wages. See chapter 1 of Pub. 463, Travel, Entertainment, Gift, and Car Expenses, and section 5 of Pub. 15 for more information. These rules generally apply to temporary work assignments both inside and outside the U.S.
Don't withhold federal income, social security, or Medicare taxes on the fair market value of an employee achievement award if it is excludable from your employee's gross income. To be excludable from your employee's gross income, the award must be tangible personal property (not cash, gift certificates, or securities) given to an employee for length of service or safety achievement, awarded as part of a meaningful presentation, and awarded under circumstances that don't indicate that the payment is disguised compensation. Excludable employee achievement awards also aren't subject to FUTA tax.
Only amounts that you pay as a qualified scholarship to a candidate for a degree may be excluded from the recipient's gross income. A qualified scholarship is any amount granted as a scholarship or fellowship that is used for:

Tuition and fees required to enroll in, or to attend, an educational institution, or

Fees, books, supplies, and equipment that are required for courses at the educational institution.
The exclusion from income doesn't apply to the portion of any amount received that represents payment for teaching, research, or other services required as a condition of receiving the scholarship or tuition reduction. These amounts are reportable on Form W2. However, the exclusion will still apply for any amount, despite any service condition attached to the amount, received under the National Health Service Corps Scholarship Program; the Armed Forces Health Professions Scholarship and Financial Assistance Program; and a comprehensive student worklearningservice program operated by a work college, as defined in section 448(e) of the Higher Education Act of 1965.
Any amounts that you pay for room and board aren't excludable from the recipient's gross income. A qualified scholarship isn't subject to social security, Medicare, and FUTA taxes, or federal income tax withholding. For more information, see Pub. 970, Tax Benefits for Education.
If you provide outplacement services to your employees to help them find new employment (such as career counseling, resume assistance, or skills assessment), the value of these benefits may be income to them and subject to all withholding taxes. However, the value of these services won't be subject to any employment taxes if:

You derive a substantial business benefit from providing the services (such as improved employee morale or business image) separate from the benefit that you would receive from the mere payment of additional compensation, and

The employee would be able to deduct the cost of the services as employee business expenses if he or she had paid for them.
However, if you receive no additional benefit from providing the services, or if the services aren't provided on the basis of employee need, then the value of the services is treated as wages and is subject to federal income tax withholding and social security and Medicare taxes. Similarly, if an employee receives the outplacement services in exchange for reduced severance pay (or other taxable compensation), then the amount the severance pay is reduced is treated as wages for employment tax purposes.
Payments made under a voluntary guarantee to employees for idle time (any time during which an employee performs no services) are wages for the purposes of social security, Medicare, and FUTA taxes, and federal income tax withholding.
Treat back pay as wages in the year paid and withhold and pay employment taxes as required. If back pay was awarded by a court or government agency to enforce a federal or state statute protecting an employee's right to employment or wages, special rules apply for reporting those wages to the Social Security Administration. These rules also apply to litigation actions and settlement agreements or agency directives that are resolved out of court and not under a court decree or order. Examples of pertinent statutes include, but aren't limited to, the National Labor Relations Act, Fair Labor Standards Act, Equal Pay Act, and Age Discrimination in Employment Act. See Pub. 957, Reporting Back Pay and Special Wage Payments to the Social Security Administration, and Form SSA131, Employer Report of Special Wage Payments, for details.
If you pay, under a plan, supplemental unemployment compensation benefits to a former employee, all or part of the payments may be taxable and subject to federal income tax withholding, depending on how the plan is funded. Amounts that represent a return to the employee of amounts previously subject to tax aren't taxable and aren't subject to withholding. You should withhold federal income tax on the taxable part of the payments made, under a plan, to an employee who is involuntarily separated because of a reduction in force, discontinuance of a plant or operation, or other similar condition. It doesn't matter whether the separation is temporary or permanent.
There are special rules that apply in determining whether supplemental unemployment compensation benefits are excluded from wages for social security, Medicare, and FUTA tax purposes. To be excluded from wages for such purposes, the benefits must meet the following requirements.

Benefits are paid only to unemployed former employees who are laid off by the employer.

Eligibility for benefits depends on meeting prescribed conditions after termination.

The amount of weekly benefits payable is based upon state unemployment benefits, other compensation allowable under state law, and the amount of regular weekly pay.

The right to benefits doesn't accrue until a prescribed period after termination.

Benefits aren't attributable to the performance of particular services.

No employee has any right to the benefits until qualified and eligible to receive benefits.

Benefits may not be paid in a lump sum.
Withholding on taxable supplemental unemployment compensation benefits must be based on the withholding certificate (Form W4) that the employee gave to you.
For more information, see Revenue Ruling 9072, 199036 I.R.B. 13.
A golden parachute payment, in general, is a payment made under a contract entered into by a corporation and key personnel. Under the agreement, the corporation agrees to pay certain amounts to its key personnel in the event of a change in ownership or control of the corporation. Payments to employees under golden parachute contracts are subject to social security, Medicare, and FUTA taxes, and federal income tax withholding. See Regulations section 1.280G1 for more information.
No deduction is allowed to the corporation for any excess parachute payment. To determine the amount of the excess parachute payment, you must first determine if there is a parachute payment for purposes of section 280G. A parachute payment for purposes of section 280G is any payment that meets all of the following.

The payment is in the nature of compensation.

The payment is to, or for the benefit of, a disqualified individual. A disqualified individual is anyone who at any time during the 12month period prior to and ending on the date of the change in ownership or control of the corporation (the disqualified individual determination period) was an employee or independent contractor and was, in regard to that corporation, a shareholder, an officer, or highly compensated individual.

The payment is contingent on a change in ownership of the corporation, the effective control of the corporation, or the ownership of a substantial portion of the assets of the corporation.

The payment has an aggregate present value of at least three times the individual's base amount. The base amount is the average annual compensation for service includible in the individual's gross income over the most recent 5 taxable years.
An excess parachute payment amount is the excess of any parachute payment over the base amount. For more information, see Regulations section 1.280G1. The recipient of an excess parachute payment is subject to a 20% nondeductible excise tax. If the recipient is an employee, the 20% excise tax is to be withheld by the corporation.
Example.
An officer of a corporation receives a golden parachute payment of $400,000. This is more than three times greater than his or her average compensation of $100,000 over the previous 5year period. The excess parachute payment is $300,000 ($400,000 minus $100,000). The corporation can't deduct the $300,000 and must withhold the excise tax of $60,000 (20% of $300,000).
In general, if an employer lends an employee more than $10,000 at an interest rate less than the current applicable federal rate (AFR), the difference between the interest paid and the interest that would be paid under the AFR is considered additional compensation to the employee. This rule applies to a loan of $10,000 or less if one of its principal purposes is the avoidance of federal tax.
This additional compensation to the employee is subject to social security, Medicare, and FUTA taxes, but not to federal income tax withholding. Include it in compensation on Form W2 (or Form 1099MISC for an independent contractor). The AFR is established monthly and published by the IRS each month in the Internal Revenue Bulletin. You can get these rates by visiting IRS.gov and entering “AFR” in the search box. For more information, see section 7872 and its related regulations.
If you establish a leave sharing plan for your employees that allows them to transfer leave to other employees for medical emergencies, the amounts paid to the recipients of the leave are considered wages. These amounts are includible in the gross income of the recipients and are subject to social security, Medicare, and FUTA taxes, and federal income tax withholding. Don't include these amounts in the income of the transferors. These rules apply only to leave sharing plans that permit employees to transfer leave to other employees for medical emergencies.
Section 409A provides that all amounts deferred under a nonqualified deferred compensation (NQDC) plan for all tax years are currently includible in gross income (to the extent not subject to a substantial risk of forfeiture and not previously included in gross income) and subject to additional taxes, unless certain requirements are met pertaining to, among other things, elections to defer compensation and distributions under a NQDC plan. Section 409A also includes rules that apply to certain trusts or similar arrangements associated with NQDC plans if the trusts or arrangements are located outside of the United States, are restricted to the provision of benefits in connection with a decline in the financial health of the plan sponsor, or contributions are made to the trust during certain periods such as when a qualified plan of the service recipient is underfunded. Employers must withhold federal income tax (but not the additional Section 409A taxes) on any amount includible in gross income under section 409A. Other changes to the Internal Revenue Code provide that the deferrals under a NQDC plan must be reported separately on Form W2 or Form 1099MISC, whichever applies. Specific rules for reporting are provided in the instructions to the forms. The provisions don't affect the application or reporting of social security, Medicare, or FUTA taxes.
The provisions don't prevent the inclusion of amounts in income or wages under other provisions of the Internal Revenue Code or common law principles, such as when amounts are actually or constructively received or irrevocably contributed to a separate fund. For more information about nonqualified deferred compensation plans, see Regulations sections 1.409A1 through 1.409A6. Notice 2008113 provides guidance on the correction of certain operation failures of a NQDC plan. Notice 2008113, 200851 I.R.B. 1305, is available at IRS.gov/irb/200851_IRB/ar12.html. Also see Notice 20106, 20103 I.R.B. 275, available at IRS.gov/irb/201003_IRB/ar08.html and Notice 201080, 201051 I.R.B. 853, available at IRS.gov/irb/201051_IRB/ar08.html.
Employer payments made by a public educational institution or a taxexempt organization to purchase a taxsheltered annuity for an employee (annual deferrals) are included in the employee's social security and Medicare wages, if the payments are made because of a salary reduction agreement. However, they aren't included in box 1 on Form W2 in the year the deferrals are made and aren't subject to federal income tax withholding. See Regulations section 31.3121(a)(5)2 for the definition of a salary reduction agreement.
An employer's SEP contributions to an employee's individual retirement arrangement (IRA) are excluded from the employee's gross income. These excluded amounts aren't subject to social security, Medicare, or FUTA taxes, or federal income tax withholding. However, any SEP contributions paid under a salary reduction agreement (SARSEP) are included in wages for purposes of social security, Medicare, and FUTA taxes. See Pub. 560 for more information about SEPs.
Employer and employee contributions to a savings incentive match plan for employees (SIMPLE) retirement account (subject to limitations) are excludable from the employee's income and are exempt from federal income tax withholding. An employer's nonelective (2%) or matching contributions are exempt from social security, Medicare, and FUTA taxes. However, an employee's salary reduction contributions to a SIMPLE are subject to social security, Medicare, and FUTA taxes. For more information about SIMPLE retirement plans, see Pub. 560.
Special rules apply to the reporting of sick pay payments to employees. How these payments are reported depends on whether the payments are made by the employer or a third party, such as an insurance company.
Sick pay is usually subject to social security, Medicare, and FUTA taxes. For exceptions, see Social Security, Medicare, and FUTA Taxes on Sick Pay , later in this section. Sick pay may also be subject to either mandatory or voluntary federal income tax withholding, depending on who pays it.
Sick pay generally means any amount paid under a plan because of an employee's temporary absence from work due to injury, sickness, or disability. It may be paid by either the employer or a third party, such as an insurance company. Sick pay includes both short and longterm benefits. It is often expressed as a percentage of the employee's regular wages.
Sick pay doesn't include the following payments.

Disability retirement payments. Disability retirement payments aren't sick pay and aren't discussed in this section. Those payments are subject to the rules for federal income tax withholding from pensions and annuities. See section 8.

Workers' compensation. Payments because of a workrelated injury or sickness that are made under a workers' compensation law aren't sick pay and aren't subject to employment taxes. But see Payments in the nature of workers' compensation—public employees next.

Payments in the nature of workers' compensation—public employees. State and local government employees, such as police officers and firefighters, sometimes receive payments due to an injury in the line of duty under a statute that isn't the general workers' compensation law of a state. If the statute limits benefits to workrelated injuries or sickness and doesn't base payments on the employee's age, length of service, or prior contributions, the statute is “in the nature of” a workers' compensation law. Payments under a statute in the nature of a workers' compensation law aren't sick pay and aren't subject to employment taxes. For more information, see Regulations section 31.3121(a)(2)1.

Medical expense payments. Payments under a definite plan or system for medical and hospitalization expenses, or for insurance covering these expenses, aren't sick pay and aren't subject to employment taxes.

Payments unrelated to absence from work. Accident or health insurance payments unrelated to absence from work aren't sick pay and aren't subject to employment taxes. These include payments for:

Permanent loss of a member or function of the body,

Permanent loss of the use of a member or function of the body, or

Permanent disfigurement of the body.
Example. Donald was injured in a car accident and lost an eye. Under a policy paid for by Donald's employer, Delta Insurance Co. paid Donald $20,000 as compensation for the loss of his eye. Because the payment was determined by the type of injury and was unrelated to Donald's absence from work, it isn't sick pay and isn't subject to federal employment taxes.

A sick pay plan is a plan or system established by an employer under which sick pay is available to employees generally or to a class or classes of employees. This doesn't include a situation in which benefits are provided on a discretionary or occasional basis with merely an intention to aid particular employees in time of need.
You have a sick pay plan or system if the plan is in writing or is otherwise made known to employees, such as by a bulletin board notice or your long and established practice. Some indications that you have a sick pay plan or system include references to the plan or system in the contract of employment, employer contributions to a plan, or segregated accounts for the payment of benefits.

Withholds the employee part of social security and Medicare taxes from the sick pay payments.

Makes timely deposits of the employee part of social security and Medicare taxes.

Notifies the employer for whom the employee normally works of the payments on which employee taxes were withheld and deposited. The third party must notify the employer within the time required for the third party's deposit of the employee part of the social security and Medicare taxes. For instance, if the third party is a monthly schedule depositor, it must notify the employer by the 15th day of the month following the month in which the sick pay payment is made because that is the day by which the deposit is required to be made. The third party should notify the employer as soon as information on payments is available so that an employer can make electronic deposits timely. For multiemployer plans, see the special rule discussed next.

The total wages paid to the employee during the calendar year.

The last month in which the employee worked for the employer.

The employee contributions to the sick pay plan made with aftertax dollars.

Payments after an employee's death or disability retirement. Social security, Medicare, and FUTA taxes don't apply to amounts paid under a definite plan or system, as defined under Sick Pay Plan , earlier in this section, on or after the termination of the employment relationship because of death or disability retirement. However, even if there is a definite plan or system, amounts paid to a former employee are subject to social security, Medicare, and FUTA taxes if they would have been paid even if the employment relationship hadn't terminated because of death or disability retirement. For example, a payment to a disabled former employee for unused vacation time would have been made whether or not the employee retired on disability. Therefore, the payment is wages and is subject to social security, Medicare, and FUTA taxes.

Payments after calendar year of employee's death. Sick pay paid to the employee's estate or survivor after the calendar year of the employee's death isn't subject to social security, Medicare, or FUTA taxes. Also, see Amounts not subject to federal income tax withholding , later in this section.
Example. Sandra became entitled to sick pay on November 23, 2016, and died on December 31, 2016. On January 12, 2017, Sandra's sick pay for the period from December 24 through December 31, 2016, was paid to her survivor. The payment isn't subject to social security, Medicare, or FUTA taxes.

Payments to an employee entitled to disability insurance benefits. Payments to an employee when the employee is entitled to disability insurance benefits under section 223(a) of the Social Security Act aren't subject to social security and Medicare taxes. This rule applies only if the employee became entitled to the Social Security Act benefits before the calendar year in which the payments are made, and the employee performs no services for the employer during the period for which the payments are made. However, these payments are subject to FUTA tax.

Payments that exceed the applicable wage base. Social security and FUTA taxes don't apply to payments of sick pay that, when combined with the regular wages and sick pay previously paid to the employee during the year, exceed the applicable wage base. Because there is no Medicare tax wage base, this exception doesn't apply to Medicare tax. For 2017, the social security tax wage base is $127,200 and the FUTA tax wage base is $7,000.
Example. If an employee receives $120,000 in wages from an employer in 2017 and also receives $10,000 of sick pay, only the first $7,200 (127,200120,000) of the sick pay is subject to social security tax. All of the sick pay is subject to Medicare tax. None of the sick pay is subject to FUTA tax. See Example of Figuring and Reporting Sick Pay , later in this section.

Payments after 6 months absence from work. Social security, Medicare, and FUTA taxes don't apply to sick pay paid more than 6 calendar months after the last calendar month in which the employee worked.
Example 1. Ralph's last day of work before he became entitled to receive sick pay was December 9, 2016. He was paid sick pay for 9 months before his return to work on September 18, 2017. Sick pay paid to Ralph after June 30, 2017, isn't subject to social security, Medicare, or FUTA taxes.
Example 2. The facts are the same as in Example 1, except that Ralph worked 1 day during the 9month period, on February 13, 2017. Because the 6month period begins again in March, only the sick pay paid to Ralph after August 31, 2017, is exempt from social security, Medicare, and FUTA taxes.

Payments attributable to employee contributions. Social security, Medicare, and FUTA taxes don't apply to payments, or parts of payments, attributable to employee contributions to a sick pay plan made with aftertax dollars. Contributions to a sick pay plan made on behalf of employees with employees' pretax dollars under a cafeteria plan are employer contributions.
Group policy. If both the employer and the employee contributed to the sick pay plan under a group insurance policy, figure the taxable sick pay by multiplying total sick pay by the percentage of the policy's cost that was contributed by the employer for the 3 policy years before the calendar year in which the sick pay is paid. If the policy has been in effect fewer than 3 years, use the cost for the policy years in effect or, if in effect less than 1 year, a reasonable estimate of the cost for the first policy year.
Example. Alan is employed by Edgewood Corporation. Because of an illness, he was absent from work for 3 months during 2017. Key Insurance Company paid Alan $2,000 sick pay for each month of his absence under a policy paid for by contributions from both Edgewood and its employees. All of the employees' contributions were paid with aftertax dollars. For the 3 policy years before 2017, Edgewood paid 70% of the policy's cost and its employees paid 30%. Because 70% of the sick pay paid under the policy is due to Edgewood's contributions, $1,400 ($2,000 × 70%) of each payment made to Alan is taxable sick pay. The remaining $600 of each payment that is due to employee contributions isn't taxable sick pay and isn't subject to employment taxes. Also, see Example of Figuring and Reporting Sick Pay , later in this section.
The requirements for federal income tax withholding on sick pay and the methods for figuring it differ depending on whether the sick pay is paid by:

The employer,

An agent of the employer (defined earlier in this section), or

A third party that isn't the employer's agent.

Payments after the employee's death. Sick pay paid to the employee's estate or survivor at any time after the employee's death isn't subject to federal income tax withholding, regardless of who pays it.

Payments attributable to employee contributions. Payments, or parts of payments, attributable to employee contributions made to a sick pay plan with aftertax dollars aren't subject to federal income tax withholding. For more information, see the corresponding discussion under Amounts not subject to social security, Medicare, or FUTA taxes , earlier in this section.
This section discusses who is liable for depositing social security, Medicare, FUTA, and withheld federal income taxes on sick pay. These taxes must be deposited under the same rules that apply to deposits of taxes on regular wage payments. See Pub. 15 for information on the deposit rules.
This section also explains how sick pay should be reported on Forms W2, W3, 940, and 941 (or Form 944).
If you or your agent (defined earlier in this section) make sick pay payments, you deposit taxes and file Forms W2, W3, 940, and 941 (or Form 944) under the same rules that apply to regular wage payments.
However, any agreement between the parties may require your agent to carry out responsibilities that would otherwise have been borne by you. In this situation, your agent should use its own name and EIN (rather than yours) for the responsibilities that it has assumed.
The depositing and reporting rules for a third party that isn't your agent depend on whether liability has been transferred as discussed under Third party not employer's agent , earlier in this section.
To figure the due dates and amounts of its deposits of employment taxes, a third party should combine:

The liability for the wages paid to its own employees, and

The liability for payments it made to all employees of all its clients. This doesn't include any liability transferred to the employer.

Employer. You must include thirdparty sick pay on Form 941, lines 2, 5a, 5c, and 5d (if applicable). There should be no sick pay entry on line 3 because the third party withheld federal income tax, if any. After completing line 6, subtract on line 8 the employee part of social security and Medicare taxes withheld and deposited by the third party.

Third party. The third party must include on Form 941 the employee part of the social security and Medicare taxes (and federal income tax, if any) it withheld. The third party doesn't include on line 2 any sick pay paid as a third party but does include on line 3 any federal income tax withheld. On line 5a, column 1, the third party enters the total amount it paid subject to social security taxes. This amount includes both wages paid to its own employees and sick pay paid as a third party. The third party completes line 5c and 5d (if applicable), column 1, in a similar manner. On line 8, the third party subtracts the employer part of the social security and Medicare taxes that you must pay.

Withhold and pay employee part of social security tax and Medicare tax and income tax withholding on the sick pay, and

Report the withheld amounts on Form 941 using the agent’s name and EIN.

Pay and report the employer part of social security tax and Medicare tax on a Form 941 using the employer's name and EIN and report the sick pay on Form W2.

The third party doesn't provide you with the sick pay statement described next, and

You (not the third party) files Form 8922. Form 8922 is needed to reconcile the sick pay shown on your Forms 941 or Form 944.

The employee's name.

The employee's SSN (if social security, Medicare, or income tax was withheld).

The sick pay paid to the employee.

Any federal income tax withheld.

Any employee part of social security tax withheld.

Any employee part of Medicare tax withheld.
Note. The following example is for wages paid in 2016.
Dave, an employee of Edgewood Corporation, was seriously injured in a car accident on January 1, 2016. Dave's last day of work was December 31, 2015. The accident wasn't job related.
Key, an insurance company that wasn't an agent of the employer, paid Dave $2,000 sick pay each month for 10 months, beginning in January 2016. Dave submitted a Form W4S to Key, requesting $210 be withheld from each payment for federal income tax. Dave received no payments from Edgewood, his employer, from January 2016 through October 2016. Dave returned to work on November 2, 2016.
For the policy year in which the car accident occurred, Dave paid a part of the premiums for his coverage, and Edgewood paid the remaining part. The plan was, therefore, a “contributory plan.” During the 3 policy years before the calendar year of the accident, Edgewood paid 70% of the total of the net premiums for its employees' insurance coverage, and its employees paid 30%.
THIRD PARTY SICK PAY – NOT AS AN AGENT AND LIABILITY TRANSFERRED TO EMPLOYER  

Employer Responsibilities  Third Party Responsibilities  
Withhold Employee Taxes  
Income  No  Yes, if Form W4S is submitted  
Social Security  No  Yes  
Medicare  No  Yes  
Deposit Employee Taxes  
Income  No  Yes — Using Third Party EIN  
Social Security  No  Yes — Using Third Party EIN  
Medicare  No  Yes — Using Third Party EIN  
Deposit Employer Taxes  
Social Security  Yes — Using Employer EIN  No  
Medicare  Yes — Using Employer EIN  No  
FUTA  Yes — Using Employer EIN  No  
Report Employee Wage and Taxes on Form 941  
Income  Report Taxable Wages  Report Tax Withheld  
Social Security  *Report Taxable Wages  *Report Taxable Wages  
Medicare  *Report Taxable Wages  *Report Taxable Wages  
^{*Adjustment on Line 8 for employee taxes deposited by third party.}  ^{*Adjustment on Line 8 for employer taxes deposited by employer.}  
Report Employee Wage and Taxes on Form W2*  
Income  Yes  No — File Form 8922  
Social Security  Yes  No — File Form 8922  
Medicare  Yes  No — File Form 8922  
*See the instructions earlier if operating under the Optional rule for Form W2 . 
If two or more related corporations employ the same individual at the same time and pay this individual through a common paymaster that is one of the corporations, the corporations are considered to be a single employer. They have to pay, in total, no more in social security tax than a single employer would pay.
Each corporation must pay its own part of the employment taxes and may deduct only its own part of the wages. The deductions won't be allowed unless the corporation reimburses the common paymaster for the wage and tax payments. See Regulations section 31.3121(s)1 for more information. The common paymaster is responsible for filing information and tax returns and issuing Forms W2 with respect to wages it is considered to have paid as a common paymaster.
Employers and payers must use Form 2678 to request approval for an agent to file returns and make deposits or payments of their employment or other withholding taxes. See Revenue Procedure 201339, 201352 I.R.B. 830, available at IRS.gov/irb/201352_IRB/ar15.html; Revenue Procedure 8433, 19841 C.B. 502; and the General Instructions for Forms W2 and W3 for procedures and reporting requirements. Form 2678 doesn't apply to FUTA taxes reportable on Form 940 unless the employer is a home care service recipient receiving home care services through a program administered by a federal, state, or local government agency.
Agents filing an aggregate Form 940 must file Schedule R (Form 940). Agents filing an aggregate Form 941 must file Schedule R (Form 941).
If you pay your employee's social security and Medicare taxes without deducting them from the employee's pay, you must include the amount of the payments in the employee's wages for federal income tax withholding and social security, Medicare, and FUTA taxes. This increase in the employee's wages for your payment of the employee's social security and Medicare taxes is also subject to employee social security and Medicare taxes. This again increases the amount of the additional taxes you must pay.
To figure the employee's increased wages in this situation, divide the stated pay (the amount that you pay without taking into account your payment of employee social security and Medicare taxes) by a factor for that year. This factor is determined by subtracting from 1 the combined employee social security and Medicare tax rate for the year that the wages are paid. For 2017, the factor is 0.9235 (1 − 0.0765). If the stated pay is more than $117,469.20 (2017 wage base $127,200 ×0.9235), follow the procedure described under Stated pay of more than $117,469.20 in 2017 below.
Example.
Donald Devon hires Lydia Lone for only one week during 2017. He pays her $500 for that week. Donald agrees to pay Lydia's part of the social security and Medicare taxes. To figure her reportable wages, he divides $500 by 0.9235. The result, $541.42, is the amount that he reports as wages in boxes 1, 3, and 5 of Form W2. To figure the amount to report as social security tax, Donald multiplies $541.42 by the social security tax rate of 6.2% (0.062). The result, $33.57, is entered in box 4 of Form W2. To figure the amount to report as Medicare tax, Donald multiplies $541.42 by the Medicare tax rate of 1.45% (0.0145). The result, $7.85, is entered in box 6 of Form W2. Although he didn't actually withhold the amounts from Lydia, he will report these amounts as taxes withheld on Form 941 or Form 944 and is responsible for the employer share of these taxes.
For FUTA tax and federal income tax withholding, Lydia's weekly wages are $541.42.
$120,000 – $117,469.20 = $2,530.80 
$2,530.80 ÷ 0.9855 = $2,568.04 
$2,568.04 + $127,200 = $129,768.04 
The United States has bilateral social security agreements with many countries to eliminate dual taxation and coverage under two social security systems. Under these agreements, sometimes known as totalization agreements, employees generally must pay social security taxes only to the country where they work. Employees and employers who are subject to foreign social security taxes under these agreements are potentially exempt from U.S. social security taxes, including the Medicare portion. For more information, visit the SSA website at socialsecurity.gov/international, or see Pub. 519, U.S. Tax Guide for Aliens.
Generally, federal income tax withholding applies to the taxable part of payments made from pension, profitsharing, stock bonus, annuity, and certain deferred compensation plans; from individual retirement arrangements (IRAs); and from commercial annuities. Don't withhold income taxes from amounts totally exempt from tax. If part of a distribution is taxable and part is nontaxable, withhold income taxes only on the part subject to tax when known. The method and rate of withholding depends on (a) the kind of payment, (b) whether the payments are delivered outside the United States and its possessions, and (c) whether the payee is a nonresident alien individual, a nonresident alien beneficiary, or a foreign estate. Qualified distributions from Roth IRAs and Roth 401(k)s are nontaxable and, therefore, not subject to withholding. See Payments to Foreign Persons and Payments Outside the United States , later in this section, for special withholding rules that apply to payments outside the United States and payments to foreign persons.
The recipient of certain pension or annuity payments can choose not to have federal income tax withheld from the payments by using line 1 of Form W4P. For an estate, the election to have no federal income tax withheld can be made by the executor or personal representative of the decedent. The estate's EIN should be entered in the area reserved for “Your social security number” on Form W4P.
Federal income tax must be withheld from eligible rollover distributions. See Eligible Rollover Distribution—20% Withholding , later in this section.
Periodic payments are those made in installments at regular intervals over a period of more than 1 year. They may be paid annually, quarterly, monthly, etc. Withholding from periodic payments of a pension or annuity is figured in the same manner as withholding from wages.
If the recipient wants income tax withheld, he or she must designate the number of withholding allowances on Form W4P, line 2, and can designate an additional amount to be withheld on line 3. If the recipient doesn't want any federal income tax withheld from his or her periodic payments, he or she can check the box on Form W4P, line 1, and submit the form to you. If the recipient doesn't submit Form W4P, you must withhold on periodic payments as if the recipient were married claiming three withholding allowances. Generally, this means that tax will be withheld if the pension or annuity is at least $1,720 a month.
If you receive a Form W4P that doesn't contain the recipient's correct taxpayer identification number (TIN), you must withhold as if the recipient were single claiming zero withholding allowances even if the recipient attempts to choose not to have income tax withheld.
There are some kinds of periodic payments for which the recipient can't use Form W4P because they are already defined as wages subject to federal income tax withholding. These include retirement pay for service in the U.S. Armed Forces and payments from certain nonqualified deferred compensation plans and compensation plans of exempt organizations described in section 457.
The recipient's Form W4P stays in effect until he or she changes or revokes it. You must notify recipients each year of their right to choose not to have federal income tax withheld or to change their previous choice.
You must withhold at a flat 10% rate from nonperiodic payments (but see Eligible Rollover Distribution—20% Withholding next) unless the recipient chooses not to have income tax withheld (if permitted). Distributions from an IRA that are payable on demand are treated as nonperiodic payments. A recipient can choose not to have income tax withheld from a nonperiodic payment by submitting Form W4P (containing his or her correct TIN) and checking the box on line 1. Generally, the choice not to have federal income tax withheld will apply to any later payment from the same plan. A recipient can't use line 2 for nonperiodic payments, but he or she may use line 3 to specify an additional amount that he or she wants withheld.
If a recipient submits a Form W4P that doesn't contain his or her correct TIN, you can't honor his or her request not to have income tax withheld and you must withhold 10% of the payment for federal income tax.
Distributions from eligible retirement plans, such as qualified pension or annuity plans, 401(k) pension plans, section 457(b) plans maintained by a governmental employer, or taxsheltered annuities that are eligible to be rolled over tax free to an IRA or another eligible retirement plan, are subject to a flat 20% withholding rate. The 20% withholding rate is required and a recipient can't choose to have less federal income tax withheld from eligible rollover distributions. However, you shouldn't withhold federal income tax if the entire distribution is transferred in a direct rollover to a traditional IRA, or another eligible retirement plan such as a qualified pension plan, governmental section 457(b) plan, or section 403(b) contract or taxsheltered annuity.
Unless the recipient is a nonresident alien, withholding in the manner described earlier is required on any periodic or nonperiodic payments that are delivered outside the United States and its possessions. A recipient can't choose not to have federal income tax withheld.
In the absence of a treaty exemption, nonresident aliens, nonresident alien beneficiaries, and foreign estates generally are subject to a 30% withholding tax under section 1441 on the taxable portion of a periodic or nonperiodic pension or annuity payment that is from U.S. sources. However, many tax treaties provide that private pensions and annuities are exempt from withholding and tax. Also, payments from certain pension plans are exempt from withholding even if no tax treaty applies. See Pub. 515 and Pub. 519. A foreign person should submit Form W8BEN, Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting (Individuals), to you before receiving any payments. The Form W8BEN must contain the foreign person's TIN.
Special rules may apply to nonresident aliens who relinquished U.S. citizenship or ceased to be longterm residents of the United States after June 16, 2008. For more information, see section 5 of Notice 200985, 200945 I.R.B. 598, available at IRS.gov/irb/200945_IRB/ar10.html. Also see Form W8CE, Notice of Expatriation and Waiver of Treaty Benefits.
By January 31 of the next year, you must furnish a statement on Form 1099R, Distributions From Pensions, Annuities, Retirement or ProfitSharing Plans, IRAs, Insurance Contracts, etc., showing the total amount of the recipient's pension or annuity payments and the total federal income tax you withheld during the prior year. Report income tax withheld on Form 945, Annual Return of Withheld Federal Income Tax, not on Forms 941 or Form 944.
If the recipient is a foreign person who has provided you with Form W8BEN, you instead must furnish a statement to the recipient on Form 1042S, Foreign Person's U.S. Source Income Subject to Withholding, by March 15 for the prior year. Report federal income tax withheld on Form 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons.
You may use various methods of figuring federal income tax withholding. The methods described next may be used instead of the common payroll methods provided in Pub. 15. Use the method that best suits your payroll system and employees.
Employers must use a modified procedure to figure the amount of federal income tax withholding on the wages of nonresident alien employees. This procedure is discussed in Pub. 15. Before you use any of the alternative methods to figure the federal income tax withholding on the wages of nonresident alien employees, see Pub. 15. Don't use the Combined Federal Income Tax, Employee Social Security Tax, and Employee Medicare Tax Withholding Table on pages 49–68 for figuring withholding on nonresident alien employees.
The last day of any employment during the calendar year with any prior employer.

A statement that the employee uses the calendar year accounting period.

A statement that the employee reasonably anticipates that he or she will be employed by all employers for a total of no more than 245 days in all terms of continuous employment (defined below in this section) during the current calendar year.

Add the wages to be paid to the employee for the current payroll period to any wages that you’ve already paid to the employee in the current term of continuous employment. See definition for “term of continuous employment” below.

Add the number of payroll periods used in step 1 to the number of payroll periods between the employee's last employment and current employment. To find the number of periods between the last employment and current employment, divide the number of calendar days between the employee's last day of earlier employment (or the previous December 31, if later) and the first day of current employment by the number of calendar days in the current payroll period.

Divide the step 1 amount by the total number of payroll periods from step 2.

Find the tax in the withholding tax tables on the step 3 amount. Be sure to use the correct payroll period table and to take into account the employee's withholding allowances.

Multiply the total number of payroll periods from step 2 by the step 4 amount.

Subtract from the step 5 amount the total tax already withheld during the current term of continuous employment. Any excess is the amount to withhold for the current payroll period.
If the tax required to be withheld under the annual percentage is—  The annual taxwithheld under your method may not differ by more than— 

Less than $10.00  $9.99 
$10 or more but under $100  $10 plus 10% of the excess over $10 
$100 or more but under $1,000  $19 plus 3% of the excess over $100 
$1,000 or more  $46 plus 1% of the excess over $1,000 
Two formula tables for percentage method withholding are on pages 27–30. The differences in the Alternative Percentage Method formulas and the steps for figuring withheld tax for different payroll systems are shown in this example.
MARRIED PERSON (Weekly Payroll Period)
If wages exceeding the allowance amount are over $166 but not over $525:  
Method:  Income Tax Withheld:  
Percentage (Pub. 15)  10% of excess over $166  
Alternative 1 (pages 27–28)  10% of such wages minus $16.60  
Alternative 2 (pages 29–30)  Such wages minus $166, times 10% of remainder 
Alternative 1.—Tables for Percentage Method Withholding Computations
(For Wages Paid in 2017)

Table A(1)—WEEKLY PAYROLL PERIOD (Amount for each allowance claimed is $77.90)  
Single Person  Married Person  
If the wage in excess of allowance amount is: 
The income tax to be withheld is: 
If the wage in excess of allowance amount is: 
The income tax to be withheld is: 

Over—  But not over—  Of such wage— 
From product 
Over—  But not over—  Of such wage— 
From product 
$0  —$44  0%  $0  $0  —$166  0%  $0 
$44  —$224  10% less  $4.40  $166  —$525  10% less  $16.60 
$224  —$774  15% less  $15.60  $525  —$1,626  15% less  $42.85 
$774  —$1,812  25% less  $93.00  $1,626  —$3,111  25% less  $205.45 
$1,812  —$3,730  28% less  $147.36  $3,111  —$4,654  28% less  $298.78 
$3,730  —$8,058  33% less  $333.86  $4,654  —$8,180  33% less  $531.48 
$8,058  —$8,090  35% less  $495.02  $8,180  —$9,218  35% less  $695.08 
$8,090  —  39.6% less  $867.16  $9,218  —  39.6% less  $1,119.11 
Table B(1)—BIWEEKLY PAYROLL PERIOD (Amount for each allowance claimed is $155.80)  
Single Person  Married Person  
If the wage in excess of allowance amount is: 
The income tax to be withheld is: 
If the wage in excess of allowance amount is: 
The income tax to be withheld is: 

Over—  But not over—  Of such wage— 
From product 
Over—  But not over—  Of such wage— 
From product 
$0  —$88  0%  $0  $0  —$333  0%  $0 
$88  —$447  10% less  $8.80  $333  —$1,050  10% less  $33.30 
$447  —$1,548  15% less  $31.15  $1,050  —$3,252  15% less  $85.80 
$1,548  —$3,623  25% less  $185.95  $3,252  —$6,221  25% less  $411.00 
$3,623  —$7,460  28% less  $294.64  $6,221  —$9,308  28% less  $597.63 
$7,460  —$16,115  33% less  $667.64  $9,308  —$16,360  33% less  $1,063.03 
$16,115  —$16,181  35% less  $989.94  $16,360  —$18,437  35% less  $1,390.23 
$16,181  —  39.6% less  $1,734.27  $18,437  —  39.6% less  $2,238.33 
Table C(1)—SEMIMONTHLY PAYROLL PERIOD (Amount for each allowance claimed is $168.80)  
Single Person  Married Person  
If the wage in excess of allowance amount is: 
The income tax to be withheld is: 
If the wage in excess of allowance amount is: 
The income tax to be withheld is: 

Over—  But not over—  Of such wage— 
From product 
Over—  But not over—  Of such wage— 
From product 
$0  —$96  0%  $0  $0  —$360  0%  $0 
$96  —$484  10% less  $9.60  $360  —$1,138  10% less  $36.00 
$484  —$1,677  15% less  $33.80  $1,138  —$3,523  15% less  $92.90 
$1,677  —$3,925  25% less  $201.50  $3,523  —$6,740  25% less  $445.20 
$3,925  —$8,081  28% less  $319.25  $6,740  —$10,083  28% less  $647.40 
$8,081  —$17,458  33% less  $723.30  $10,083  —$17,723  33% less  $1,151.55 
$17,458  —$17,529  35% less  $1,072.46  $17,723  —$19,973  35% less  $1,506.01 
$17,529  —  39.6% less  $1,878.79  $19,973  —  39.6% less  $2,424.77 
Alternative 1.—Tables for Percentage Method Withholding Computations (continued)
(For Wages Paid in 2017)

Table D(1)—MONTHLY PAYROLL PERIOD (Amount for each allowance claimed is $337.50)  
Single Person  Married Person  
If the wage in excess of allowance amount is: 
The income tax to be withheld is: 
If the wage in excess of allowance amount is: 
The income tax to be withheld is: 

Over—  But not over—  Of such wage— 
From product 
Over—  But not over—  Of such wage— 
From product 
$0  —$192  0%  $0  $0  —$721  0%  $0 
$192  —$969  10% less  $19.20  $721  —$2,275  10% less  $72.10 
$969  —$3,354  15% less  $67.65  $2,275  —$7,046  15% less  $185.85 
$3,354  —$7,850  25% less  $403.05  $7,046  —$13,479  25% less  $890.45 
$7,850  —$16,163  28% less  $638.55  $13,479  —$20,167  28% less  $1,294.82 
$16,163  —$34,917  33% less  $1,446.70  $20,167  —$35,446  33% less  $2,303.17 
$34,917  —$35,058  35% less  $2,145.04  $35,446  —$39,946  35% less  $3,012.09 
$35,058  —  39.6% less  $3,757.71  $39,946  —  39.6% less  $4,849.61 
Table E(1)—DAILY or MISCELLANEOUS PAYROLL PERIOD (Amount for each allowance claimed for such period is $15.60) 

Single Person  Married Person  
If the wage in excess of allowance amount divided by the number of days in the pay period is: 
The income tax to be withheld multiplied by the number of days in such period is: 
If the wage in excess of allowance amount divided by the number of days in the pay period is: 
The income tax to be withheld multiplied by the number of days in such period is: 

Over—  But not over—  Of such wage— 
From product 
Over—  But not over—  Of such wage— 
From product 
$0  —$8.80  0%  $0  $0  —$33.30  0%  $0 
$8.80  —$44.70  10% less  $0.88  $33.30  —$105.00  10% less  $3.33 
$44.70  —$154.80  15% less  $3.12  $105.00  —$325.20  15% less  $8.58 
$154.80  —$362.30  25% less  $18.59  $325.20  —$622.10  25% less  $41.10 
$362.30  —$746.00  28% less  $29.45  $622.10  —$930.80  28% less  $59.76 
$746.00  —$1,611.50  33% less  $66.75  $930.80  —$1,636.00  33% less  $106.29 
$1,611.50  —$1,618.10  35% less  $98.98  $1,636.00  —$1,843.70  35% less  $139.01 
$1,618.10  —  39.6% less  $173.41  $1,843.70  —  39.6% less  $223.82 
Note.— The adjustment factors may be reduced by one–half cent (e.g., 7.50 to 7.495; 69.38 to 69.375) to eliminate separate half rounding operations.  
The first two brackets of these tables may be combined, provided zero withholding is used to credit withholding amounts computed by the combined bracket rates, for example, $0 to $44 and $44 to $224 combined to read, “Over $0, But not over $224.”  
The employee's excess wage (gross wage less amount for allowances claimed) is used with the applicable percentage rates and subtraction factors to calculate the amount of income tax withheld. 
Alternative 2.—Tables for Percentage Method Withholding Computations
(For Wages Paid in 2017)

Table A(2)—WEEKLY PAYROLL PERIOD (Amount for each allowance claimed is $77.90)  
Single Person  Married Person  
If the wage in excess of allowance amount is: 
The income tax to be withheld is: 
If the wage in excess of allowance amount is: 
The income tax to be withheld is: 

Over—  But not over—  Such wage—  Times  Over—  But not over—  Such wage—  Times 
$0  —$44  minus $0.00  0%  $0  —$166  minus $0.00  0% 
$44  —$224  minus $44.00  10%  $166  —$525  minus $166.00  10% 
$224  —$774  minus $104.00  15%  $525  —$1,626  minus $285.67  15% 
$774  —$1,812  minus $372.00  25%  $1,626  —$3,111  minus $821.80  25% 
$1,812  —$3,730  minus $526.29  28%  $3,111  —$4,654  minus $1,067.07  28% 
$3,730  —$8,058  minus $1,011.70  33%  $4,654  —$8,180  minus $1,610.55  33% 
$8,058  —$8,090  minus $1,414.34  35%  $8,180  —$9,218  minus $1,985.94  35% 
$8,090  —  minus $2,189.80  39.6%  $9,218  —  minus $2,826.03  39.6% 
Table B(2)—BIWEEKLY PAYROLL PERIOD (Amount for each allowance claimed is $155.80)  
Single Person  Married Person  
If the wage in excess of allowance amount is: 
The income tax to be withheld is: 
If the wage in excess of allowance amount is: 
The income tax to be withheld is: 

Over—  But not over—  Such wage—  Times  Over—  But not over—  Such wage—  Times 
$0  —$88  minus $0.00  0%  $0  —$333  minus $0.00  0% 
$88  —$447  minus $88.00  10%  $333  —$1,050  minus $333.00  10% 
$447  —$1,548  minus $207.67  15%  $1,050  —$3,252  minus $572.00  15% 
$1,548  —$3,623  minus $743.80  25%  $3,252  —$6,221  minus $1,644.00  25% 
$3,623  —$7,460  minus $1,052.29  28%  $6,221  —$9,308  minus $2,134.39  28% 
$7,460  —$16,115  minus $2,023.15  33%  $9,308  —$16,360  minus $3,221.30  33% 
$16,115  —$16,181  minus $2,828.40  35%  $16,360  —$18,437  minus $3,972.09  35% 
$16,181  —  minus $4,379.46  39.6%  $18,437  —  minus $5,652.35  39.6% 
Table C(2)—SEMIMONTHLY PAYROLL PERIOD (Amount for each allowance claimed is $168.80)  
Single Person  Married Person  
If the wage in excess of allowance amount is: 
The income tax to be withheld is: 
If the wage in excess of allowance amount is: 
The income tax to be withheld is: 

Over—  But not over—  Such wage—  Times  Over—  But not over—  Such wage—  Times 
$0  —$96  minus $0.00  0%  $0  —$360  minus $0.00  0% 
$96  —$484  minus $96.00  10%  $360  —$1,138  minus $360.00  10% 
$484  —$1,677  minus $225.33  15%  $1,138  —$3,523  minus $619.33  15% 
$1,677  —$3,925  minus $806.00  25%  $3,523  —$6,740  minus $1,780.80  25% 
$3,925  —$8,081  minus $1,140.18  28%  $6,740  —$10,083  minus $2,312.14  28% 
$8,081  —$17,458  minus $2,191.82  33%  $10,083  —$17,723  minus $3,489.55  33% 
$17,458  —$17,529  minus $3,064.17  35%  $17,723  —$19,973  minus $4,302.89  35% 
$17,529  —  minus $4,744.43  39.6%  $19,973  —  minus $6,123.15  39.6% 
Alternative 2.—Tables for Percentage Method Withholding Computations (continued)
(For Wages Paid in 2017)

Table D(2)—MONTHLY PAYROLL PERIOD (Amount for each allowance claimed is $337.50)  
Single Person  Married Person  
If the wage in excess of allowance amount is: 
The income tax to be withheld is: 
If the wage in excess of allowance amount is: 
The income tax to be withheld is: 

Over—  But not over—  Such wage—  Times  Over—  But not over—  Such wage—  Times 
$0  —$192  minus $0.00  0%  $0  —$721  minus $0.00  0% 
$192  —$969  minus $192.00  10%  $721  —$2,275  minus $721.00  10% 
$969  —$3,354  minus $451.00  15%  $2,275  —$7,046  minus $1,239.00  15% 
$3,354  —$7,850  minus $1,612.20  25%  $7,046  —$13,479  minus $3,561.80  25% 
$7,850  —$16,163  minus $2,280.54  28%  $13,479  —$20,167  minus $4,624.36  28% 
$16,163  —$34,917  minus $4,383.94  33%  $20,167  —$35,446  minus $6,979.30  33% 
$34,917  —$35,058  minus $6,128.69  35%  $35,446  —$39,946  minus $8,605.97  35% 
$35,058  —  minus $9,489.16  39.6%  $39,946  —  minus $12,246.48  39.6% 
Table E(2)—DAILY or MISCELLANEOUS PAYROLL PERIOD (Amount for each allowance claimed per day for such period is $15.60) 

Single Person  Married Person  
If the wage in excess of allowance amount divided by the number of days in the pay period is: 
The income tax to be withheld multiplied by the number of days in such period is: 
If the wage in excess of allowance amount divided by the number of days in the pay period is: 
The income tax to be withheld multiplied by the number of days in such period is: 

Over—  But not over—  Such wage—  Times  Over—  But not over—  Such wage—  Times 
$0.00  —$8.80  minus $0.00  0%  $0.00  —$33.30  minus $0.00  0% 
$8.80  —$44.70  minus $8.80  10%  $33.30  —$105.00  minus $33.30  10% 
$44.70  —$154.80  minus $20.77  15%  $105.00  —$325.20  minus $57.20  15% 
$154.80  —$362.30  minus $74.36  25%  $325.20  —$622.10  minus $164.40  25% 
$362.30  —$746.00  minus $105.19  28%  $622.10  —$930.80  minus $213.42  28% 
$746.00  —$1,611.50  minus $202.27  33%  $930.80  —$1,636.00  minus $322.10  33% 
$1,611.50  —$1,618.10  minus $282.79  35%  $1,636.00  —$1,843.70  minus $397.17  35% 
$1,618.10  —  minus $437.90  39.6%  $1,843.70  —  minus $565.19  39.6% 
Note.— The first two brackets of these tables may be combined, provided zero withholding is used to credit withholding amounts computed by the combined bracket rates, for example, $0 to $44 and $44 to $224 combined to read, “Over $0, But not over $224.”  
The employee's excess wage (gross wage less amount for allowances claimed) is used with the applicable percentage rates and subtraction factors to calculate the amount of income tax withheld. 
The Wage Bracket Percentage Method Tables show the gross wage brackets that apply to each withholding percentage rate for employees with up to nine withholding allowances. These tables also show the computation factors for each number of withholding allowances and the applicable wage bracket. The computation factors are used to figure the amount of withholding tax by a percentage method.
Wage Bracket Percentage Method Tables for Computing Income Tax Withholding From Gross Wages (For Wages Paid in 2017)
Weekly Payroll Period  

Single Persons  Married Persons  
If the number of allowances is—  And gross wages are—  from gross wages^{1} 
Multiply result by—  And gross wages are—  from gross wages^{1} 
Multiply result by—  
Over  But not over 
Over  But not over 

A  B  C  D  A  B  C  D  
$0.00  $224.00  subtract  $44.00  10%  $0.00  $525.00  subtract  $166.00  10%  
$224.00  $774.00  subtract  $104.00  15%  $525.00  $1,626.00  subtract  $285.67  15%  
0  $774.00  $1,812.00  subtract  $372.00  25%  $1,626.00  $3,111.00  subtract  $821.80  25% 
$1,812.00  $3,730.00  subtract  $526.29  28%  $3,111.00  $4,654.00  subtract  $1,067.07  28%  
$3,730.00  $8,058.00  subtract  $1,011.70  33%  $4,654.00  $8,180.00  subtract  $1,610.55  33%  
$8,058.00  $8,090.00  subtract  $1,414.34  35%  $8,180.00  $9,218.00  subtract  $1,985.94  35%  
$8,090.00  subtract  $2,189.80  39.6%  $9,218.00  subtract  $2,826.03  39.6%  
$0.00  $301.88  subtract  $121.88  10%  $0.00  $602.88  subtract  $243.88  10%  
$301.88  $851.88  subtract  $181.88  15%  $602.88  $1,703.88  subtract  $363.55  15%  
1  $851.88  $1,889.88  subtract  $449.88  25%  $1,703.88  $3,188.88  subtract  $899.68  25% 
$1,889.88  $3,807.88  subtract  $604.17  28%  $3,188.88  $4,731.88  subtract  $1,144.95  28%  
$3,807.88  $8,135.88  subtract  $1,089.58  33%  $4,731.88  $8,257.88  subtract  $1,688.43  33%  
$8,135.88  $8,167.88  subtract  $1,492.22  35%  $8,257.88  $9,295.88  subtract  $2,063.82  35%  
$8,167.88  subtract  $2,267.68  39.6%  $9,295.88  subtract  $2,903.91  39.6%  
$0.00  $379.76  subtract  $199.76  10%  $0.00  $680.76  subtract  $321.76  10%  
$379.76  $929.76  subtract  $259.76  15%  $680.76  $1,781.76  subtract  $441.43  15%  
2  $929.76  $1,967.76  subtract  $527.76  25%  $1,781.76  $3,266.76  subtract  $977.56  25% 
$1,967.76  $3,885.76  subtract  $682.05  28%  $3,266.76  $4,809.76  subtract  $1,222.83  28%  
$3,885.76  $8,213.76  subtract  $1,167.46  33%  $4,809.76  $8,335.76  subtract  $1,766.31  33%  
$8,213.76  $8,245.76  subtract  $1,570.10  35%  $8,335.76  $9,373.76  subtract  $2,141.70  35%  
$8,245.76  subtract  $2,345.56  39.6%  $9,373.76  subtract  $2,981.79  39.6%  
$0.00  $457.64  subtract  $277.64  10%  $0.00  $758.64  subtract  $399.64  10%  
$457.64  $1,007.64  subtract  $337.64  15%  $758.64  $1,859.64  subtract  $519.31  15%  
3  $1,007.64  $2,045.64  subtract  $605.64  25%  $1,859.64  $3,344.64  subtract  $1,055.44  25% 
$2,045.64  $3,963.64  subtract  $759.93  28%  $3,344.64  $4,887.64  subtract  $1,300.71  28%  
$3,963.64  $8,291.64  subtract  $1,245.34  33%  $4,887.64  $8,413.64  subtract  $1,844.19  33%  
$8,291.64  $8,323.64  subtract  $1,647.98  35%  $8,413.64  $9,451.64  subtract  $2,219.58  35%  
$8,323.64  subtract  $2,423.44  39.6%  $9,451.64  subtract  $3,059.67  39.6%  
$0.00  $535.52  subtract  $355.52  10%  $0.00  $836.52  subtract  $477.52  10%  
$535.52  $1,085.52  subtract  $415.52  15%  $836.52  $1,937.52  subtract  $597.19  15%  
4  $1,085.52  $2,123.52  subtract  $683.52  25%  $1,937.52  $3,422.52  subtract  $1,133.32  25% 
$2,123.52  $4,041.52  subtract  $837.81  28%  $3,422.52  $4,965.52  subtract  $1,378.59  28%  
$4,041.52  $8,369.52  subtract  $1,323.22  33%  $4,965.52  $8,491.52  subtract  $1,922.07  33%  
$8,369.52  $8,401.52  subtract  $1,725.86  35%  $8,491.52  $9,529.52  subtract  $2,297.46  35%  
$8,401.52  subtract  $2,501.32  39.6%  $9,529.52  subtract  $3,137.55  39.6%  
$0.00  $613.40  subtract  $433.40  10%  $0.00  $914.40  subtract  $555.40  10%  
$613.40  $1,163.40  subtract  $493.40  15%  $914.40  $2,015.40  subtract  $675.07  15%  
5  $1,163.40  $2,201.40  subtract  $761.40  25%  $2,015.40  $3,500.40  subtract  $1,211.20  25% 
$2,201.40  $4,119.40  subtract  $915.69  28%  $3,500.40  $5,043.40  subtract  $1,456.47  28%  
$4,119.40  $8,447.40  subtract  $1,401.10  33%  $5,043.40  $8,569.40  subtract  $1,999.95  33%  
$8,447.40  $8,479.40  subtract  $1,803.74  35%  $8,569.40  $9,607.40  subtract  $2,375.34  35%  
$8,479.40  subtract  $2,579.20  39.6%  $9,607.40  subtract  $3,215.43  39.6%  
$0.00  $691.28  subtract  $511.28  10%  $0.00  $992.28  subtract  $633.28  10%  
$691.28  $1,241.28  subtract  $571.28  15%  $992.28  $2,093.28  subtract  $752.95  15%  
6  $1,241.28  $2,279.28  subtract  $839.28  25%  $2,093.28  $3,578.28  subtract  $1,289.08  25% 
$2,279.28  $4,197.28  subtract  $993.57  28%  $3,578.28  $5,121.28  subtract  $1,534.35  28%  
$4,197.28  $8,525.28  subtract  $1,478.98  33%  $5,121.28  $8,647.28  subtract  $2,077.83  33%  
$8,525.28  $8,557.28  subtract  $1,881.62  35%  $8,647.28  $9,685.28  subtract  $2,453.22  35%  
$8,557.28  subtract  $2,657.08  39.6%  $9,685.28  subtract  $3,293.31  39.6%  
$0.00  $769.16  subtract  $589.16  10%  $0.00  $1,070.16  subtract  $711.16  10%  
$769.16  $1,319.16  subtract  $649.16  15%  $1,070.16  $2,171.16  subtract  $830.83  15%  
7  $1,319.16  $2,357.16  subtract  $917.16  25%  $2,171.16  $3,656.16  subtract  $1,366.96  25% 
$2,357.16  $4,275.16  subtract  $1,071.45  28%  $3,656.16  $5,199.16  subtract  $1,612.23  28%  
$4,275.16  $8,603.16  subtract  $1,556.86  33%  $5,199.16  $8,725.16  subtract  $2,155.71  33%  
$8,603.16  $8,635.16  subtract  $1,959.50  35%  $8,725.16  $9,763.16  subtract  $2,531.10  35%  
$8,635.16  subtract  $2,734.96  39.6%  $9,763.16  subtract  $3,371.19  39.6%  
$0.00  $847.04  subtract  $667.04  10%  $0.00  $1,148.04  subtract  $789.04  10%  
$847.04  $1,397.04  subtract  $727.04  15%  $1,148.04  $2,249.04  subtract  $908.71  15%  
8  $1,397.04  $2,435.04  subtract  $995.04  25%  $2,249.04  $3,734.04  subtract  $1,444.84  25% 
$2,435.04  $4,353.04  subtract  $1,149.33  28%  $3,734.04  $5,277.04  subtract  $1,690.11  28%  
$4,353.04  $8,681.04  subtract  $1,634.74  33%  $5,277.04  $8,803.04  subtract  $2,233.59  33%  
$8,681.04  $8,713.04  subtract  $2,037.38  35%  $8,803.04  $9,841.04  subtract  $2,608.98  35%  
$8,713.04  subtract  $2,812.84  39.6%  $9,841.04  subtract  $3,449.07  39.6%  
$0.00  $924.92  subtract  $744.92  10%  $0.00  $1,225.92  subtract  $866.92  10%  
$924.92  $1,474.92  subtract  $804.92  15%  $1,225.92  $2,326.92  subtract  $986.59  15%  
9^{2}  $1,474.92  $2,512.92  subtract  $1,072.92  25%  $2,326.92  $3,811.92  subtract  $1,522.72  25% 
$2,512.92  $4,430.92  subtract  $1,227.21  28%  $3,811.92  $5,354.92  subtract  $1,767.99  28%  
$4,430.92  $8,758.92  subtract  $1,712.62  33%  $5,354.92  $8,880.92  subtract  $2,311.47  33%  
$8,758.92  $8,790.92  subtract  $2,115.26  35%  $8,880.92  $9,918.92  subtract  $2,686.86  35%  
$8,790.92  subtract  $2,890.72  39.6%  $9,918.92  subtract  $3,526.95  39.6%  
Instructions  
A. For each employee, use the appropriate payroll period table and marital status section, and select the subsection showing the number of allowances claimed.  
B. Read across the selected subsection and locate the bracket applicable to the employee's gross wages in columns A and B.  
C. Subtract the amount shown in column C from the employee's excess wages.  
D. Multiply the result by the withholding percentage rate shown in column D to obtain the amount of tax to be withheld.  
^{1} If the gross wages are less than the amount to be subtracted, the withholding is zero.  
^{2} You can expand these tables for additional allowances. To do this, increase the amounts in the subsection by $77.90 for each additional allowance claimed.  
Wage Bracket Percentage Method Tables for Computing Income Tax Withholding From Gross Wages (For Wages Paid in 2017)
BiWeekly Payroll Period  

Single Persons  Married Persons  
If the number of allowances is—  And gross wages are—  from gross wages^{1} 
Multiply result by—  And gross wages are—  from gross wages^{1} 
Multiply result by—  
Over  But not over 
Over  But not over 

A  B  C  D  A  B  C  D  
$0.00  $447.00  subtract  $88.00  10%  $0.00  $1,050.00  subtract  $333.00  10%  
$447.00  $1,548.00  subtract  $207.67  15%  $1,050.00  $3,252.00  subtract  $572.00  15%  
0  $1,548.00  $3,623.00  subtract  $743.80  25%  $3,252.00  $6,221.00  subtract  $1,644.00  25% 
$3,623.00  $7,460.00  subtract  $1,052.29  28%  $6,221.00  $9,308.00  subtract  $2,134.39  28%  
$7,460.00  $16,115.00  subtract  $2,023.15  33%  $9,308.00  $16,360.00  subtract  $3,221.30  33%  
$16,115.00  $16,181.00  subtract  $2,828.40  35%  $16,360.00  $18,437.00  subtract  $3,972.09  35%  
$16,181.00  subtract  $4,379.46  39.6%  $18,437.00  subtract  $5,652.35  39.6%  
$0.00  $602.77  subtract  $243.77  10%  $0.00  $1,205.77  subtract  $488.77  10%  
$602.77  $1,703.77  subtract  $363.44  15%  $1,205.77  $3,407.77  subtract  $727.77  15%  
1  $1,703.77  $3,778.77  subtract  $899.57  25%  $3,407.77  $6,376.77  subtract  $1,799.77  25% 
$3,778.77  $7,615.77  subtract  $1,208.06  28%  $6,376.77  $9,463.77  subtract  $2,290.16  28%  
$7,615.77  $16,270.77  subtract  $2,178.92  33%  $9,463.77  $16,515.77  subtract  $3,377.07  33%  
$16,270.77  $16,336.77  subtract  $2,984.17  35%  $16,515.77  $18,592.77  subtract  $4,127.86  35%  
$16,336.77  subtract  $4,535.23  39.6%  $18,592.77  subtract  $5,808.12  39.6%  
$0.00  $758.54  subtract  $399.54  10%  $0.00  $1,361.54  subtract  $644.54  10%  
$758.54  $1,859.54  subtract  $519.21  15%  $1,361.54  $3,563.54  subtract  $883.54  15%  
2  $1,859.54  $3,934.54  subtract  $1,055.34  25%  $3,563.54  $6,532.54  subtract  $1,955.54  25% 
$3,934.54  $7,771.54  subtract  $1,363.83  28%  $6,532.54  $9,619.54  subtract  $2,445.93  28%  
$7,771.54  $16,426.54  subtract  $2,334.69  33%  $9,619.54  $16,671.54  subtract  $3,532.84  33%  
$16,426.54  $16,492.54  subtract  $3,139.94  35%  $16,671.54  $18,748.54  subtract  $4,283.63  35%  
$16,492.54  subtract  $4,691.00  39.6%  $18,748.54  subtract  $5,963.89  39.6%  
$0.00  $914.31  subtract  $555.31  10%  $0.00  $1,517.31  subtract  $800.31  10%  
$914.31  $2,015.31  subtract  $674.98  15%  $1,517.31  $3,719.31  subtract  $1,039.31  15%  
3  $2,015.31  $4,090.31  subtract  $1,211.11  25%  $3,719.31  $6,688.31  subtract  $2,111.31  25% 
$4,090.31  $7,927.31  subtract  $1,519.60  28%  $6,688.31  $9,775.31  subtract  $2,601.70  28%  
$7,927.31  $16,582.31  subtract  $2,490.46  33%  $9,775.31  $16,827.31  subtract  $3,688.61  33%  
$16,582.31  $16,648.31  subtract  $3,295.71  35%  $16,827.31  $18,904.31  subtract  $4,439.40  35%  
$16,648.31  subtract  $4,846.77  39.6%  $18,904.31  subtract  $6,119.66  39.6%  
$0.00  $1,070.08  subtract  $711.08  10%  $0.00  $1,673.08  subtract  $956.08  10%  
$1,070.08  $2,171.08  subtract  $830.75  15%  $1,673.08  $3,875.08  subtract  $1,195.08  15%  
4  $2,171.08  $4,246.08  subtract  $1,366.88  25%  $3,875.08  $6,844.08  subtract  $2,267.08  25% 
$4,246.08  $8,083.08  subtract  $1,675.37  28%  $6,844.08  $9,931.08  subtract  $2,757.47  28%  
$8,083.08  $16,738.08  subtract  $2,646.23  33%  $9,931.08  $16,983.08  subtract  $3,844.38  33%  
$16,738.08  $16,804.08  subtract  $3,451.48  35%  $16,983.08  $19,060.08  subtract  $4,595.17  35%  
$16,804.08  subtract  $5,002.54  39.6%  $19,060.08  subtract  $6,275.43  39.6%  
$0.00  $1,225.85  subtract  $866.85  10%  $0.00  $1,828.85  subtract  $1,111.85  10%  
$1,225.85  $2,326.85  subtract  $986.52  15%  $1,828.85  $4,030.85  subtract  $1,350.85  15%  
5  $2,326.85  $4,401.85  subtract  $1,522.65  25%  $4,030.85  $6,999.85  subtract  $2,422.85  25% 
$4,401.85  $8,238.85  subtract  $1,831.14  28%  $6,999.85  $10,086.85  subtract  $2,913.24  28%  
$8,238.85  $16,893.85  subtract  $2,802.00  33%  $10,086.85  $17,138.85  subtract  $4,000.15  33%  
$16,893.85  $16,959.85  subtract  $3,607.25  35%  $17,138.85  $19,215.85  subtract  $4,750.94  35%  
$16,959.85  subtract  $5,158.31  39.6%  $19,215.85  subtract  $6,431.20  39.6%  
$0.00  $1,381.62  subtract  $1,022.62  10%  $0.00  $1,984.62  subtract  $1,267.62  10%  
$1,381.62  $2,482.62  subtract  $1,142.29  15%  $1,984.62  $4,186.62  subtract  $1,506.62  15%  
6  $2,482.62  $4,557.62  subtract  $1,678.42  25%  $4,186.62  $7,155.62  subtract  $2,578.62  25% 
$4,557.62  $8,394.62  subtract  $1,986.91  28%  $7,155.62  $10,242.62  subtract  $3,069.01  28%  
$8,394.62  $17,049.62  subtract  $2,957.77  33%  $10,242.62  $17,294.62  subtract  $4,155.92  33%  
$17,049.62  $17,115.62  subtract  $3,763.02  35%  $17,294.62  $19,371.62  subtract  $4,906.71  35%  
$17,115.62  subtract  $5,314.08  39.6%  $19,371.62  subtract  $6,586.97  39.6%  
$0.00  $1,537.39  subtract  $1,178.39  10%  $0.00  $2,140.39  subtract  $1,423.39  10%  
$1,537.39  $2,638.39  subtract  $1,298.06  15%  $2,140.39  $4,342.39  subtract  $1,662.39  15%  
7  $2,638.39  $4,713.39  subtract  $1,834.19  25%  $4,342.39  $7,311.39  subtract  $2,734.39  25% 
$4,713.39  $8,550.39  subtract  $2,142.68  28%  $7,311.39  $10,398.39  subtract  $3,224.78  28%  
$8,550.39  $17,205.39  subtract  $3,113.54  33%  $10,398.39  $17,450.39  subtract  $4,311.69  33%  
$17,205.39  $17,271.39  subtract  $3,918.79  35%  $17,450.39  $19,527.39  subtract  $5,062.48  35%  
$17,271.39  subtract  $5,469.85  39.6%  $19,527.39  subtract  $6,742.74  39.6%  
$0.00  $1,693.16  subtract  $1,334.16  10%  $0.00  $2,296.16  subtract  $1,579.16  10%  
$1,693.16  $2,794.16  subtract  $1,453.83  15%  $2,296.16  $4,498.16  subtract  $1,818.16  15%  
8  $2,794.16  $4,869.16  subtract  $1,989.96  25%  $4,498.16  $7,467.16  subtract  $2,890.16  25% 
$4,869.16  $8,706.16  subtract  $2,298.45  28%  $7,467.16  $10,554.16  subtract  $3,380.55  28%  
$8,706.16  $17,361.16  subtract  $3,269.31  33%  $10,554.16  $17,606.16  subtract  $4,467.46  33%  
$17,361.16  $17,427.16  subtract  $4,074.56  35%  $17,606.16  $19,683.16  subtract  $5,218.25  35%  
$17,427.16  subtract  $5,625.62  39.6%  $19,683.16  subtract  $6,898.51  39.6%  
$0.00  $1,848.93  subtract  $1,489.93  10%  $0.00  $2,451.93  subtract  $1,734.93  10%  
$1,848.93  $2,949.93  subtract  $1,609.60  15%  $2,451.93  $4,653.93  subtract  $1,973.93  15%  
9^{2}  $2,949.93  $5,024.93  subtract  $2,145.73  25%  $4,653.93  $7,622.93  subtract  $3,045.93  25% 
$5,024.93  $8,861.93  subtract  $2,454.22  28%  $7,622.93  $10,709.93  subtract  $3,536.32  28%  
$8,861.93  $17,516.93  subtract  $3,425.08  33%  $10,709.93  $17,761.93  subtract  $4,623.23  33%  
$17,516.93  $17,582.93  subtract  $4,230.33  35%  $17,761.93  $19,838.93  subtract  $5,374.02  35%  
$17,582.93  subtract  $5,781.39  39.6%  $19,838.93  subtract  $7,054.28  39.6%  
Instructions  
A. For each employee, use the appropriate payroll period table and marital status section, and select the subsection showing the number of allowances claimed.  
B. Read across the selected subsection and locate the bracket applicable to the employee's gross wages in columns A and B.  
C. Subtract the amount shown in column C from the employee's excess wages.  
D. Multiply the result by the withholding percentage rate shown in column D to obtain the amount of tax to be withheld.  
^{1} If the gross wages are less than the amount to be subtracted, the withholding is zero.  
^{2} You can expand these tables for additional allowances. To do this, increase the amounts in the subsection by $155.80 for each additional allowance claimed.  
Wage Bracket Percentage Method Tables for Computing Income Tax Withholding From Gross Wages (For Wages Paid in 2017)
SemiMonthly Payroll Period  

Single Persons  Married Persons  
If the number of allowances is—  And gross wages are—  from gross wages^{1} 
Multiply result by—  And gross wages are—  from gross wages^{1} 
Multiply result by—  
Over  But not over 
Over  But not over 

A  B  C  D  A  B  C  D  
$0.00  $484.00  subtract  $96.00  10%  $0.00  $1,138.00  subtract  $360.00  10%  
$484.00  $1,677.00  subtract  $225.33  15%  $1,138.00  $3,523.00  subtract  $619.33  15%  
0  $1,677.00  $3,925.00  subtract  $806.00  25%  $3,523.00  $6,740.00  subtract  $1,780.80  25% 
$3,925.00  $8,081.00  subtract  $1,140.18  28%  $6,740.00  $10,083.00  subtract  $2,312.14  28%  
$8,081.00  $17,458.00  subtract  $2,191.82  33%  $10,083.00  $17,723.00  subtract  $3,489.55  33%  
$17,458.00  $17,529.00  subtract  $3,064.17  35%  $17,723.00  $19,973.00  subtract  $4,302.89  35%  
$17,529.00  subtract  $4,744.43  39.6%  $19,973.00  subtract  $6,123.15  39.6%  
$0.00  $652.75  subtract  $264.75  10%  $0.00  $1,306.75  subtract  $528.75  10%  
$652.75  $1,845.75  subtract  $394.08  15%  $1,306.75  $3,691.75  subtract  $788.08  15%  
1  $1,845.75  $4,093.75  subtract  $974.75  25%  $3,691.75  $6,908.75  subtract  $1,949.55  25% 
$4,093.75  $8,249.75  subtract  $1,308.93  28%  $6,908.75  $10,251.75  subtract  $2,480.89  28%  
$8,249.75  $17,626.75  subtract  $2,360.57  33%  $10,251.75  $17,891.75  subtract  $3,658.30  33%  
$17,626.75  $17,697.75  subtract  $3,232.92  35%  $17,891.75  $20,141.75  subtract  $4,471.64  35%  
$17,697.75  subtract  $4,913.18  39.6%  $20,141.75  subtract  $6,291.90  39.6%  
$0.00  $821.50  subtract  $433.50  10%  $0.00  $1,475.50  subtract  $697.50  10%  
$821.50  $2,014.50  subtract  $562.83  15%  $1,475.50  $3,860.50  subtract  $956.83  15%  
2  $2,014.50  $4,262.50  subtract  $1,143.50  25%  $3,860.50  $7,077.50  subtract  $2,118.30  25% 
$4,262.50  $8,418.50  subtract  $1,477.68  28%  $7,077.50  $10,420.50  subtract  $2,649.64  28%  
$8,418.50  $17,795.50  subtract  $2,529.32  33%  $10,420.50  $18,060.50  subtract  $3,827.05  33%  
$17,795.50  $17,866.50  subtract  $3,401.67  35%  $18,060.50  $20,310.50  subtract  $4,640.39  35%  
$17,866.50  subtract  $5,081.93  39.6%  $20,310.50  subtract  $6,460.65  39.6%  
$0.00  $990.25  subtract  $602.25  10%  $0.00  $1,644.25  subtract  $866.25  10%  
$990.25  $2,183.25  subtract  $731.58  15%  $1,644.25  $4,029.25  subtract  $1,125.58  15%  
3  $2,183.25  $4,431.25  subtract  $1,312.25  25%  $4,029.25  $7,246.25  subtract  $2,287.05  25% 
$4,431.25  $8,587.25  subtract  $1,646.43  28%  $7,246.25  $10,589.25  subtract  $2,818.39  28%  
$8,587.25  $17,964.25  subtract  $2,698.07  33%  $10,589.25  $18,229.25  subtract  $3,995.80  33%  
$17,964.25  $18,035.25  subtract  $3,570.42  35%  $18,229.25  $20,479.25  subtract  $4,809.14  35%  
$18,035.25  subtract  $5,250.68  39.6%  $20,479.25  subtract  $6,629.40  39.6%  
$0.00  $1,159.00  subtract  $771.00  10%  $0.00  $1,813.00  subtract  $1,035.00  10%  
$1,159.00  $2,352.00  subtract  $900.33  15%  $1,813.00  $4,198.00  subtract  $1,294.33  15%  
4  $2,352.00  $4,600.00  subtract  $1,481.00  25%  $4,198.00  $7,415.00  subtract  $2,455.80  25% 
$4,600.00  $8,756.00  subtract  $1,815.18  28%  $7,415.00  $10,758.00  subtract  $2,987.14  28%  
$8,756.00  $18,133.00  subtract  $2,866.82  33%  $10,758.00  $18,398.00  subtract  $4,164.55  33%  
$18,133.00  $18,204.00  subtract  $3,739.17  35%  $18,398.00  $20,648.00  subtract  $4,977.89  35%  
$18,204.00  subtract  $5,419.43  39.6%  $20,648.00  subtract  $6,798.15  39.6%  
$0.00  $1,327.75  subtract  $939.75  10%  $0.00  $1,981.75  subtract  $1,203.75  10%  
$1,327.75  $2,520.75  subtract  $1,069.08  15%  $1,981.75  $4,366.75  subtract  $1,463.08  15%  
5  $2,520.75  $4,768.75  subtract  $1,649.75  25%  $4,366.75  $7,583.75  subtract  $2,624.55  25% 
$4,768.75  $8,924.75  subtract  $1,983.93  28%  $7,583.75  $10,926.75  subtract  $3,155.89  28%  
$8,924.75  $18,301.75  subtract  $3,035.57  33%  $10,926.75  $18,566.75  subtract  $4,333.30  33%  
$18,301.75  $18,372.75  subtract  $3,907.92  35%  $18,566.75  $20,816.75  subtract  $5,146.64  35%  
$18,372.75  subtract  $5,588.18  39.6%  $20,816.75  subtract  $6,966.90  39.6%  
$0.00  $1,496.50  subtract  $1,108.50  10%  $0.00  $2,150.50  subtract  $1,372.50  10%  
$1,496.50  $2,689.50  subtract  $1,237.83  15%  $2,150.50  $4,535.50  subtract  $1,631.83  15%  
6  $2,689.50  $4,937.50  subtract  $1,818.50  25%  $4,535.50  $7,752.50  subtract  $2,793.30  25% 
$4,937.50  $9,093.50  subtract  $2,152.68  28%  $7,752.50  $11,095.50  subtract  $3,324.64  28%  
$9,093.50  $18,470.50  subtract  $3,204.32  33%  $11,095.50  $18,735.50  subtract  $4,502.05  33%  
$18,470.50  $18,541.50  subtract  $4,076.67  35%  $18,735.50  $20,985.50  subtract  $5,315.39  35%  
$18,541.50  subtract  $5,756.93  39.6%  $20,985.50  subtract  $7,135.65  39.6%  
$0.00  $1,665.25  subtract  $1,277.25  10%  $0.00  $2,319.25  subtract  $1,541.25  10%  
$1,665.25  $2,858.25  subtract  $1,406.58  15%  $2,319.25  $4,704.25  subtract  $1,800.58  15%  
7  $2,858.25  $5,106.25  subtract  $1,987.25  25%  $4,704.25  $7,921.25  subtract  $2,962.05  25% 
$5,106.25  $9,262.25  subtract  $2,321.43  28%  $7,921.25  $11,264.25  subtract  $3,493.39  28%  
$9,262.25  $18,639.25  subtract  $3,373.07  33%  $11,264.25  $18,904.25  subtract  $4,670.80  33%  
$18,639.25  $18,710.25  subtract  $4,245.42  35%  $18,904.25  $21,154.25  subtract  $5,484.14  35%  
$18,710.25  subtract  $5,925.68  39.6%  $21,154.25  subtract  $7,304.40  39.6%  
$0.00  $1,834.00  subtract  $1,446.00  10%  $0.00  $2,488.00  subtract  $1,710.00  10%  
$1,834.00  $3,027.00  subtract  $1,575.33  15%  $2,488.00  $4,873.00  subtract  $1,969.33  15%  
8  $3,027.00  $5,275.00  subtract  $2,156.00  25%  $4,873.00  $8,090.00  subtract  $3,130.80  25% 
$5,275.00  $9,431.00  subtract  $2,490.18  28%  $8,090.00  $11,433.00  subtract  $3,662.14  28%  
$9,431.00  $18,808.00  subtract  $3,541.82  33%  $11,433.00  $19,073.00  subtract  $4,839.55  33%  
$18,808.00  $18,879.00  subtract  $4,414.17  35%  $19,073.00  $21,323.00  subtract  $5,652.89  35%  
$18,879.00  subtract  $6,094.43  39.6%  $21,323.00  subtract  $7,473.15  39.6%  
$0.00  $2,002.75  subtract  $1,614.75  10%  $0.00  $2,656.75  subtract  $1,878.75  10%  
$2,002.75  $3,195.75  subtract  $1,744.08  15%  $2,656.75  $5,041.75  subtract  $2,138.08  15%  
9^{2}  $3,195.75  $5,443.75  subtract  $2,324.75  25%  $5,041.75  $8,258.75  subtract  $3,299.55  25% 
$5,443.75  $9,599.75  subtract  $2,658.93  28%  $8,258.75  $11,601.75  subtract  $3,830.89  28%  
$9,599.75  $18,976.75  subtract  $3,710.57  33%  $11,601.75  $19,241.75  subtract  $5,008.30  33%  
$18,976.75  $19,047.75  subtract  $4,582.92  35%  $19,241.75  $21,491.75  subtract  $5,821.64  35%  
$19,047.75  subtract  $6,263.18  39.6%  $21,491.75  subtract  $7,641.90  39.6%  
Instructions  
A. For each employee, use the appropriate payroll period table and marital status section, and select the subsection showing the number of allowances claimed.  
B. Read across the selected subsection and locate the bracket applicable to the employee's gross wages in columns A and B.  
C. Subtract the amount shown in column C from the employee's excess wages.  
D. Multiply the result by the withholding percentage rate shown in column D to obtain the amount of tax to be withheld.  
^{1} If the gross wages are less than the amount to be subtracted, the withholding is zero.  
^{2} You can expand these tables for additional allowances. To do this, increase the amounts in the subsection by $168.80 for each additional allowance claimed.  
Wage Bracket Percentage Method Tables for Computing Income Tax Withholding From Gross Wages (For Wages Paid in 2017)
Monthly Payroll Period  

Single Persons  Married Persons  
If the number of allowances is—  And gross wages are—  from gross wages^{1} 
Multiply result by—  And gross wages are—  from gross wages^{1} 
Multiply result by—  
Over  But not over 
Over  But not over 

A  B  C  D  A  B  C  D  
$0.00  $969.00  subtract  $192.00  10%  $0.00  $2,275.00  subtract  $721.00  10%  
$969.00  $3,354.00  subtract  $451.00  15%  $2,275.00  $7,046.00  subtract  $1,239.00  15%  
0  $3,354.00  $7,850.00  subtract  $1,612.20  25%  $7,046.00  $13,479.00  subtract  $3,561.80  25% 
$7,850.00  $16,163.00  subtract  $2,280.54  28%  $13,479.00  $20,167.00  subtract  $4,624.36  28%  
$16,163.00  $34,917.00  subtract  $4,383.94  33%  $20,167.00  $35,446.00  subtract  $6,979.30  33%  
$34,917.00  $35,058.00  subtract  $6,128.69  35%  $35,446.00  $39,946.00  subtract  $8,605.97  35%  
$35,058.00  subtract  $9,489.16  39.6%  $39,946.00  subtract  $12,246.48  39.6%  
$0.00  $1,306.50  subtract  $529.50  10%  $0.00  $2,612.50  subtract  $1,058.50  10%  
$1,306.50  $3,691.50  subtract  $788.50  15%  $2,612.50  $7,383.50  subtract  $1,576.50  15%  
1  $3,691.50  $8,187.50  subtract  $1,949.70  25%  $7,383.50  $13,816.50  subtract  $3,899.30  25% 
$8,187.50  $16,500.50  subtract  $2,618.04  28%  $13,816.50  $20,504.50  subtract  $4,961.86  28%  
$16,500.50  $35,254.50  subtract  $4,721.44  33%  $20,504.50  $35,783.50  subtract  $7,316.80  33%  
$35,254.50  $35,395.50  subtract  $6,466.19  35%  $35,783.50  $40,283.50  subtract  $8,943.47  35%  
$35,395.50  subtract  $9,826.66  39.6%  $40,283.50  subtract  $12,583.98  39.6%  
$0.00  $1,644.00  subtract  $867.00  10%  $0.00  $2,950.00  subtract  $1,396.00  10%  
$1,644.00  $4,029.00  subtract  $1,126.00  15%  $2,950.00  $7,721.00  subtract  $1,914.00  15%  
2  $4,029.00  $8,525.00  subtract  $2,287.20  25%  $7,721.00  $14,154.00  subtract  $4,236.80  25% 
$8,525.00  $16,838.00  subtract  $2,955.54  28%  $14,154.00  $20,842.00  subtract  $5,299.36  28%  
$16,838.00  $35,592.00  subtract  $5,058.94  33%  $20,842.00  $36,121.00  subtract  $7,654.30  33%  
$35,592.00  $35,733.00  subtract  $6,803.69  35%  $36,121.00  $40,621.00  subtract  $9,280.97  35%  
$35,733.00  subtract  $10,164.16  39.6%  $40,621.00  subtract  $12,921.48  39.6%  
$0.00  $1,981.50  subtract  $1,204.50  10%  $0.00  $3,287.50  subtract  $1,733.50  10%  
$1,981.50  $4,366.50  subtract  $1,463.50  15%  $3,287.50  $8,058.50  subtract  $2,251.50  15%  
3  $4,366.50  $8,862.50  subtract  $2,624.70  25%  $8,058.50  $14,491.50  subtract  $4,574.30  25% 
$8,862.50  $17,175.50  subtract  $3,293.04  28%  $14,491.50  $21,179.50  subtract  $5,636.86  28%  
$17,175.50  $35,929.50  subtract  $5,396.44  33%  $21,179.50  $36,458.50  subtract  $7,991.80  33%  
$35,929.50  $36,070.50  subtract  $7,141.19  35%  $36,458.50  $40,958.50  subtract  $9,618.47  35%  
$36,070.50  subtract  $10,501.66  39.6%  $40,958.50  subtract  $13,258.98  39.6%  
$0.00  $2,319.00  subtract  $1,542.00  10%  $0.00  $3,625.00  subtract  $2,071.00  10%  
$2,319.00  $4,704.00  subtract  $1,801.00  15%  $3,625.00  $8,396.00  subtract  $2,589.00  15%  
4  $4,704.00  $9,200.00  subtract  $2,962.20  25%  $8,396.00  $14,829.00  subtract  $4,911.80  25% 
$9,200.00  $17,513.00  subtract  $3,630.54  28%  $14,829.00  $21,517.00  subtract  $5,974.36  28%  
$17,513.00  $36,267.00  subtract  $5,733.94  33%  $21,517.00  $36,796.00  subtract  $8,329.30  33%  
$36,267.00  $36,408.00  subtract  $7,478.69  35%  $36,796.00  $41,296.00  subtract  $9,955.97  35%  
$36,408.00  subtract  $10,839.16  39.6%  $41,296.00  subtract  $13,596.48  39.6%  
$0.00  $2,656.50  subtract  $1,879.50  10%  $0.00  $3,962.50  subtract  $2,408.50  10%  
$2,656.50  $5,041.50  subtract  $2,138.50  15%  $3,962.50  $8,733.50  subtract  $2,926.50  15%  
5  $5,041.50  $9,537.50  subtract  $3,299.70  25%  $8,733.50  $15,166.50  subtract  $5,249.30  25% 
$9,537.50  $17,850.50  subtract  $3,968.04  28%  $15,166.50  $21,854.50  subtract  $6,311.86  28%  
$17,850.50  $36,604.50  subtract  $6,071.44  33%  $21,854.50  $37,133.50  subtract  $8,666.80  33%  
$36,604.50  $36,745.50  subtract  $7,816.19  35%  $37,133.50  $41,633.50  subtract  $10,293.47  35%  
$36,745.50  subtract  $11,176.66  39.6%  $41,633.50  subtract  $13,933.98  39.6%  
$0.00  $2,994.00  subtract  $2,217.00  10%  $0.00  $4,300.00  subtract  $2,746.00  10%  
$2,994.00  $5,379.00  subtract  $2,476.00  15%  $4,300.00  $9,071.00  subtract  $3,264.00  15%  
6  $5,379.00  $9,875.00  subtract  $3,637.20  25%  $9,071.00  $15,504.00  subtract  $5,586.80  25% 
$9,875.00  $18,188.00  subtract  $4,305.54  28%  $15,504.00  $22,192.00  subtract  $6,649.36  28%  
$18,188.00  $36,942.00  subtract  $6,408.94  33%  $22,192.00  $37,471.00  subtract  $9,004.30  33%  
$36,942.00  $37,083.00  subtract  $8,153.69  35%  $37,471.00  $41,971.00  subtract  $10,630.97  35%  
$37,083.00  subtract  $11,514.16  39.6%  $41,971.00  subtract  $14,271.48  39.6%  
$0.00  $3,331.50  subtract  $2,554.50  10%  $0.00  $4,637.50  subtract  $3,083.50  10%  
$3,331.50  $5,716.50  subtract  $2,813.50  15%  $4,637.50  $9,408.50  subtract  $3,601.50  15%  
7  $5,716.50  $10,212.50  subtract  $3,974.70  25%  $9,408.50  $15,841.50  subtract  $5,924.30  25% 
$10,212.50  $18,525.50  subtract  $4,643.04  28%  $15,841.50  $22,529.50  subtract  $6,986.86  28%  
$18,525.50  $37,279.50  subtract  $6,746.44  33%  $22,529.50  $37,808.50  subtract  $9,341.80  33%  
$37,279.50  $37,420.50  subtract  $8,491.19  35%  $37,808.50  $42,308.50  subtract  $10,968.47  35%  
$37,420.50  subtract  $11,851.66  39.6%  $42,308.50  subtract  $14,608.98  39.6%  
$0.00  $3,669.00  subtract  $2,892.00  10%  $0.00  $4,975.00  subtract  $3,421.00  10%  
$3,669.00  $6,054.00  subtract  $3,151.00  15%  $4,975.00  $9,746.00  subtract  $3,939.00  15%  
8  $6,054.00  $10,550.00  subtract  $4,312.20  25%  $9,746.00  $16,179.00  subtract  $6,261.80  25% 
$10,550.00  $18,863.00  subtract  $4,980.54  28%  $16,179.00  $22,867.00  subtract  $7,324.36  28%  
$18,863.00  $37,617.00  subtract  $7,083.94  33%  $22,867.00  $38,146.00  subtract  $9,679.30  33%  
$37,617.00  $37,758.00  subtract  $8,828.69  35%  $38,146.00  $42,646.00  subtract  $11,305.97  35%  
$37,758.00  subtract  $12,189.16  39.6%  $42,646.00  subtract  $14,946.48  39.6%  
$0.00  $4,006.50  subtract  $3,229.50  10%  $0.00  $5,312.50  subtract  $3,758.50  10%  
$4,006.50  $6,391.50  subtract  $3,488.50  15%  $5,312.50  $10,083.50  subtract  $4,276.50  15%  
9^{2}  $6,391.50  $10,887.50  subtract  $4,649.70  25%  $10,083.50  $16,516.50  subtract  $6,599.30  25% 
$10,887.50  $19,200.50  subtract  $5,318.04  28%  $16,516.50  $23,204.50  subtract  $7,661.86  28%  
$19,200.50  $37,954.50  subtract  $7,421.44  33%  $23,204.50  $38,483.50  subtract  $10,016.80  33%  
$37,954.50  $38,095.50  subtract  $9,166.19  35%  $38,483.50  $42,983.50  subtract  $11,643.47  35%  
$38,095.50  subtract  $12,526.66  39.6%  $42,983.50  subtract  $15,283.98  39.6%  
Instructions  
A. For each employee, use the appropriate payroll period table and marital status section, and select the subsection showing the number of allowances claimed.  
B. Read across the selected subsection and locate the bracket applicable to the employee's gross wages in columns A and B.  
C. Subtract the amount shown in column C from the employee's excess wages.  
D. Multiply the result by the withholding percentage rate shown in column D to obtain the amount of tax to be withheld.  
^{1} If the gross wages are less than the amount to be subtracted, the withholding is zero.  
^{2} You can expand these tables for additional allowances. To do this, increase the amounts in the subsection by $337.50 for each additional allowance claimed.  
Wage Bracket Percentage Method Tables for Computing Income Tax Withholding From Wages Exceeding Allowance Amount (For Wages Paid in 2017)
Weekly Payroll Period  

Single Persons  Married Persons  
If the number of allowances is—  And gross wages are—  from excess wages^{1} 
Multiply result by—  And gross wages are—  from excess wages^{1} 
Multiply result by—  
Over  But not over 
Over  But not over 

A  B  C  D  A  B  C  D  
$0  $224.00  subtract  $44.00  10%  $0  $525.00  subtract  $166.00  10%  
$224.00  $774.00  subtract  $104.00  15%  $525.00  $1,626.00  subtract  $285.67  15%  
0  $774.00  $1,812.00  subtract  $372.00  25%  $1,626.00  $3,111.00  subtract  $821.80  25% 
$1,812.00  $3,730.00  subtract  $526.29  28%  $3,111.00  $4,654.00  subtract  $1,067.07  28%  
$3,730.00  $8,058.00  subtract  $1,011.70  33%  $4,654.00  $8,180.00  subtract  $1,610.55  33%  
$8,058.00  $8,090.00  subtract  $1,414.34  35%  $8,180.00  $9,218.00  subtract  $1,985.94  35%  
$8,090.00  subtract  $2,189.80  39.6%  $9,218.00  subtract  $2,826.03  39.6%  
$0  $301.88  subtract  $44.00  10%  $0  $602.88  subtract  $166.00  10%  
$301.88  $851.88  subtract  $104.00  15%  $602.88  $1,703.88  subtract  $285.67  15%  
1  $851.88  $1,889.88  subtract  $372.00  25%  $1,703.88  $3,188.88  subtract  $821.80  25% 
$1,889.88  $3,807.88  subtract  $526.29  28%  $3,188.88  $4,731.88  subtract  $1,067.07  28%  
$3,807.88  $8,135.88  subtract  $1,011.70  33%  $4,731.88  $8,257.88  subtract  $1,610.55  33%  
$8,135.88  $8,167.88  subtract  $1,414.34  35%  $8,257.88  $9,295.88  subtract  $1,985.94  35%  
$8,167.88  subtract  $2,189.80  39.6%  $9,295.88  subtract  $2,826.03  39.6%  
$0  $379.76  subtract  $44.00  10%  $0  $680.76  subtract  $166.00  10%  
$379.76  $929.76  subtract  $104.00  15%  $680.76  $1,781.76  subtract  $285.67  15%  
2  $929.76  $1,967.76  subtract  $372.00  25%  $1,781.76  $3,266.76  subtract  $821.80  25% 
$1,967.76  $3,885.76  subtract  $526.29  28%  $3,266.76  $4,809.76  subtract  $1,067.07  28%  
$3,885.76  $8,213.76  subtract  $1,011.70  33%  $4,809.76  $8,335.76  subtract  $1,610.55  33%  
$8,213.76  $8,245.76  subtract  $1,414.34  35%  $8,335.76  $9,373.76  subtract  $1,985.94  35%  
$8,245.76  subtract  $2,189.80  39.6%  $9,373.76  subtract  $2,826.03  39.6%  
$0  $457.64  subtract  $44.00  10%  $0  $758.64  subtract  $166.00  10%  
$457.64  $1,007.64  subtract  $104.00  15%  $758.64  $1,859.64  subtract  $285.67  15%  
3  $1,007.64  $2,045.64  subtract  $372.00  25%  $1,859.64  $3,344.64  subtract  $821.80  25% 
$2,045.64  $3,963.64  subtract  $526.29  28%  $3,344.64  $4,887.64  subtract  $1,067.07  28%  
$3,963.64  $8,291.64  subtract  $1,011.70  33%  $4,887.64  $8,413.64  subtract  $1,610.55  33%  
$8,291.64  $8,323.64  subtract  $1,414.34  35%  $8,413.64  $9,451.64  subtract  $1,985.94  35%  
$8,323.64  subtract  $2,189.80  39.6%  $9,451.64  subtract  $2,826.03  39.6%  
$0  $535.52  subtract  $44.00  10%  $0  $836.52  subtract  $166.00  10%  
$535.52  $1,085.52  subtract  $104.00  15%  $836.52  $1,937.52  subtract  $285.67  15%  
4  $1,085.52  $2,123.52  subtract  $372.00  25%  $1,937.52  $3,422.52  subtract  $821.80  25% 
$2,123.52  $4,041.52  subtract  $526.29  28%  $3,422.52  $4,965.52  subtract  $1,067.07  28%  
$4,041.52  $8,369.52  subtract  $1,011.70  33%  $4,965.52  $8,491.52  subtract  $1,610.55  33%  
$8,369.52  $8,401.52  subtract  $1,414.34  35%  $8,491.52  $9,529.52  subtract  $1,985.94  35%  
$8,401.52  subtract  $2,189.80  39.6%  $9,529.52  subtract  $2,826.03  39.6%  
$0  $613.40  subtract  $44.00  10%  $0  $914.40  subtract  $166.00  10%  
$613.40  $1,163.40  subtract  $104.00  15%  $914.40  $2,015.40  subtract  $285.67  15%  
5  $1,163.40  $2,201.40  subtract  $372.00  25%  $2,015.40  $3,500.40  subtract  $821.80  25% 
$2,201.40  $4,119.40  subtract  $526.29  28%  $3,500.40  $5,043.40  subtract  $1,067.07  28%  
$4,119.40  $8,447.40  subtract  $1,011.70  33%  $5,043.40  $8,569.40  subtract  $1,610.55  33%  
$8,447.40  $8,479.40  subtract  $1,414.34  35%  $8,569.40  $9,607.40  subtract  $1,985.94  35%  
$8,479.40  subtract  $2,189.80  39.6%  $9,607.40  subtract  $2,826.03  39.6%  
$0  $691.28  subtract  $44.00  10%  $0  $992.28  subtract  $166.00  10%  
$691.28  $1,241.28  subtract  $104.00  15%  $992.28  $2,093.28  subtract  $285.67  15%  
6  $1,241.28  $2,279.28  subtract  $372.00  25%  $2,093.28  $3,578.28  subtract  $821.80  25% 
$2,279.28  $4,197.28  subtract  $526.29  28%  $3,578.28  $5,121.28  subtract  $1,067.07  28%  
$4,197.28  $8,525.28  subtract  $1,011.70  33%  $5,121.28  $8,647.28  subtract  $1,610.55  33%  
$8,525.28  $8,557.28  subtract  $1,414.34  35%  $8,647.28  $9,685.28  subtract  $1,985.94  35%  
$8,557.28  subtract  $2,189.80  39.6%  $9,685.28  subtract  $2,826.03  39.6%  
$0  $769.16  subtract  $44.00  10%  $0  $1,070.16  subtract  $166.00  10%  
$769.16  $1,319.16  subtract  $104.00  15%  $1,070.16  $2,171.16  subtract  $285.67  15%  
7  $1,319.16  $2,357.16  subtract  $372.00  25%  $2,171.16  $3,656.16  subtract  $821.80  25% 
$2,357.16  $4,275.16  subtract  $526.29  28%  $3,656.16  $5,199.16  subtract  $1,067.07  28%  
$4,275.16  $8,603.16  subtract  $1,011.70  33%  $5,199.16  $8,725.16  subtract  $1,610.55  33%  
$8,603.16  $8,635.16  subtract  $1,414.34  35%  $8,725.16  $9,763.16  subtract  $1,985.94  35%  
$8,635.16  subtract  $2,189.80  39.6%  $9,763.16  subtract  $2,826.03  39.6%  
$0  $847.04  subtract  $44.00  10%  $0  $1,148.04  subtract  $166.00  10%  
$847.04  $1,397.04  subtract  $104.00  15%  $1,148.04  $2,249.04  subtract  $285.67  15%  
8  $1,397.04  $2,435.04  subtract  $372.00  25%  $2,249.04  $3,734.04  subtract  $821.80  25% 
$2,435.04  $4,353.04  subtract  $526.29  28%  $3,734.04  $5,277.04  subtract  $1,067.07  28%  
$4,353.04  $8,681.04  subtract  $1,011.70  33%  $5,277.04  $8,803.04  subtract  $1,610.55  33%  
$8,681.04  $8,713.04  subtract  $1,414.34  35%  $8,803.04  $9,841.04  subtract  $1,985.94  35%  
$8,713.04  subtract  $2,189.80  39.6%  $9,841.04  subtract  $2,826.03  39.6%  
$0  $924.92  subtract  $44.00  10%  $0  $1,225.92  subtract  $166.00  10%  
$924.92  $1,474.92  subtract  $104.00  15%  $1,225.92  $2,326.92  subtract  $285.67  15%  
9^{2}  $1,474.92  $2,512.92  subtract  $372.00  25%  $2,326.92  $3,811.92  subtract  $821.80  25% 
$2,512.92  $4,430.92  subtract  $526.29  28%  $3,811.92  $5,354.92  subtract  $1,067.07  28%  
$4,430.92  $8,758.92  subtract  $1,011.70  33%  $5,354.92  $8,880.92  subtract  $1,610.55  33%  
$8,758.92  $8,790.92  subtract  $1,414.34  35%  $8,880.92  $9,918.92  subtract  $1,985.94  35%  
$8,790.92  subtract  $2,189.80  39.6%  $9,918.92  subtract  $2,826.03  39.6%  
Instructions  
A. For each employee, use the appropriate payroll period table and marital status section, and select the subsection showing the number of allowances claimed.  
B. Read across the selected subsection and locate the bracket applicable to the employee's gross wages in columns A and B.  
C. Subtract the amount shown in column C from the employee's excess wages (gross wages less amount for allowances claimed).  
Caution.—The adjustment (subtraction) factors shown in this table (instruction C) do not include an amount for the number of allowances claimed by the employee on Form W4. The amount for allowances claimed must be deducted from gross wages before withholding tax is computed.  
D. Multiply the result by the withholding percentage rate shown in column D to obtain the amount of tax to be withheld.  
^{1} If the excess wages are less than the amount to be subtracted, the withholding is zero.  
^{2} You can expand these tables for additional allowances. To do this, increase the wage bracket amounts in the subsection by $77.90 for each additional allowance claimed.  
Wage Bracket Percentage Method Tables for Computing Income Tax Withholding From Wages Exceeding Allowance Amount (For Wages Paid in 2017)
BiWeekly Payroll Period  

Single Persons  Married Persons  
If the number of allowances is—  And gross wages are—  from excess wages^{1} 
Multiply result by—  And gross wages are—  from excess wages^{1} 
Multiply result by—  
Over  But not over 
Over  But not over 

A  B  C  D  A  B  C  D  
$0  $447.00  subtract  $88.00  10%  $0  $1,050.00  subtract  $333.00  10%  
$447.00  $1,548.00  subtract  $207.67  15%  $1,050.00  $3,252.00  subtract  $572.00  15%  
0  $1,548.00  $3,623.00  subtract  $743.80  25%  $3,252.00  $6,221.00  subtract  $1,644.00  25% 
$3,623.00  $7,460.00  subtract  $1,052.29  28%  $6,221.00  $9,308.00  subtract  $2,134.39  28%  
$7,460.00  $16,115.00  subtract  $2,023.15  33%  $9,308.00  $16,360.00  subtract  $3,221.30  33%  
$16,115.00  $16,181.00  subtract  $2,828.40  35%  $16,360.00  $18,437.00  subtract  $3,972.09  35%  
$16,181.00  subtract  $4,379.46  39.6%  $18,437.00  subtract  $5,652.35  39.6%  
$0  $602.77  subtract  $88.00  10%  $0  $1,205.77  subtract  $333.00  10%  
$602.77  $1,703.77  subtract  $207.67  15%  $1,205.77  $3,407.77  subtract  $572.00  15%  
1  $1,703.77  $3,778.77  subtract  $743.80  25%  $3,407.77  $6,376.77  subtract  $1,644.00  25% 
$3,778.77  $7,615.77  subtract  $1,052.29  28%  $6,376.77  $9,463.77  subtract  $2,134.39  28%  
$7,615.77  $16,270.77  subtract  $2,023.15  33%  $9,463.77  $16,515.77  subtract  $3,221.30  33%  
$16,270.77  $16,336.77  subtract  $2,828.40  35%  $16,515.77  $18,592.77  subtract  $3,972.09  35%  
$16,336.77  subtract  $4,379.46  39.6%  $18,592.77  subtract  $5,652.35  39.6%  
$0  $758.54  subtract  $88.00  10%  $0  $1,361.54  subtract  $333.00  10%  
$758.54  $1,859.54  subtract  $207.67  15%  $1,361.54  $3,563.54  subtract  $572.00  15%  
2  $1,859.54  $3,934.54  subtract  $743.80  25%  $3,563.54  $6,532.54  subtract  $1,644.00  25% 
$3,934.54  $7,771.54  subtract  $1,052.29  28%  $6,532.54  $9,619.54  subtract  $2,134.39  28%  
$7,771.54  $16,426.54  subtract  $2,023.15  33%  $9,619.54  $16,671.54  subtract  $3,221.30  33%  
$16,426.54  $16,492.54  subtract  $2,828.40  35%  $16,671.54  $18,748.54  subtract  $3,972.09  35%  
$16,492.54  subtract  $4,379.46  39.6%  $18,748.54  subtract  $5,652.35  39.6%  
$0  $914.31  subtract  $88.00  10%  $0  $1,517.31  subtract  $333.00  10%  
$914.31  $2,015.31  subtract  $207.67  15%  $1,517.31  $3,719.31  subtract  $572.00  15%  
3  $2,015.31  $4,090.31  subtract  $743.80  25%  $3,719.31  $6,688.31  subtract  $1,644.00  25% 
$4,090.31  $7,927.31  subtract  $1,052.29  28%  $6,688.31  $9,775.31  subtract  $2,134.39  28%  
$7,927.31  $16,582.31  subtract  $2,023.15  33%  $9,775.31  $16,827.31  subtract  $3,221.30  33%  
$16,582.31  $16,648.31  subtract  $2,828.40  35%  $16,827.31  $18,904.31  subtract  $3,972.09  35%  
$16,648.31  subtract  $4,379.46  39.6%  $18,904.31  subtract  $5,652.35  39.6%  
$0  $1,070.08  subtract  $88.00  10%  $0  $1,673.08  subtract  $333.00  10%  
$1,070.08  $2,171.08  subtract  $207.67  15%  $1,673.08  $3,875.08  subtract  $572.00  15%  
4  $2,171.08  $4,246.08  subtract  $743.80  25%  $3,875.08  $6,844.08  subtract  $1,644.00  25% 
$4,246.08  $8,083.08  subtract  $1,052.29  28%  $6,844.08  $9,931.08  subtract  $2,134.39  28%  
$8,083.08  $16,738.08  subtract  $2,023.15  33%  $9,931.08  $16,983.08  subtract  $3,221.30  33%  
$16,738.08  $16,804.08  subtract  $2,828.40  35%  $16,983.08  $19,060.08  subtract  $3,972.09  35%  
$16,804.08  subtract  $4,379.46  39.6%  $19,060.08  subtract  $5,652.35  39.6%  
$0  $1,225.85  subtract  $88.00  10%  $0  $1,828.85  subtract  $333.00  10%  
$1,225.85  $2,326.85  subtract  $207.67  15%  $1,828.85  $4,030.85  subtract  $572.00  15%  
5  $2,326.85  $4,401.85  subtract  $743.80  25%  $4,030.85  $6,999.85  subtract  $1,644.00  25% 
$4,401.85  $8,238.85  subtract  $1,052.29  28%  $6,999.85  $10,086.85  subtract  $2,134.39  28%  
$8,238.85  $16,893.85  subtract  $2,023.15  33%  $10,086.85  $17,138.85  subtract  $3,221.30  33%  
$16,893.85  $16,959.85  subtract  $2,828.40  35%  $17,138.85  $19,215.85  subtract  $3,972.09  35%  
$16,959.85  subtract  $4,379.46  39.6%  $19,215.85  subtract  $5,652.35  39.6%  
$0  $1,381.62  subtract  $88.00  10%  $0  $1,984.62  subtract  $333.00  10%  
$1,381.62  $2,482.62  subtract  $207.67  15%  $1,984.62  $4,186.62  subtract  $572.00  15%  
6  $2,482.62  $4,557.62  subtract  $743.80  25%  $4,186.62  $7,155.62  subtract  $1,644.00  25% 
$4,557.62  $8,394.62  subtract  $1,052.29  28%  $7,155.62  $10,242.62  subtract  $2,134.39  28%  
$8,394.62  $17,049.62  subtract  $2,023.15  33%  $10,242.62  $17,294.62  subtract  $3,221.30  33%  
$17,049.62  $17,115.62  subtract  $2,828.40  35%  $17,294.62  $19,371.62  subtract  $3,972.09  35%  
$17,115.62  subtract  $4,379.46  39.6%  $19,371.62  subtract  $5,652.35  39.6%  
$0  $1,537.39  subtract  $88.00  10%  $0  $2,140.39  subtract  $333.00  10%  
$1,537.39  $2,638.39  subtract  $207.67  15%  $2,140.39  $4,342.39  subtract  $572.00  15%  
7  $2,638.39  $4,713.39  subtract  $743.80  25%  $4,342.39  $7,311.39  subtract  $1,644.00  25% 
$4,713.39  $8,550.39  subtract  $1,052.29  28%  $7,311.39  $10,398.39  subtract  $2,134.39  28%  
$8,550.39  $17,205.39  subtract  $2,023.15  33%  $10,398.39  $17,450.39  subtract  $3,221.30  33%  
$17,205.39  $17,271.39  subtract  $2,828.40  35%  $17,450.39  $19,527.39  subtract  $3,972.09  35%  
$17,271.39  subtract  $4,379.46  39.6%  $19,527.39  subtract  $5,652.35  39.6%  
$0  $1,693.16  subtract  $88.00  10%  $0  $2,296.16  subtract  $333.00  10%  
$1,693.16  $2,794.16  subtract  $207.67  15%  $2,296.16  $4,498.16  subtract  $572.00  15%  
8  $2,794.16  $4,869.16  subtract  $743.80  25%  $4,498.16  $7,467.16  subtract  $1,644.00  25% 
$4,869.16  $8,706.16  subtract  $1,052.29  28%  $7,467.16  $10,554.16  subtract  $2,134.39  28%  
$8,706.16  $17,361.16  subtract  $2,023.15  33%  $10,554.16  $17,606.16  subtract  $3,221.30  33%  
$17,361.16  $17,427.16  subtract  $2,828.40  35%  $17,606.16  $19,683.16  subtract  $3,972.09  35%  
$17,427.16  subtract  $4,379.46  39.6%  $19,683.16  subtract  $5,652.35  39.6%  
$0  $1,848.93  subtract  $88.00  10%  $0  $2,451.93  subtract  $333.00  10%  
$1,848.93  $2,949.93  subtract  $207.67  15%  $2,451.93  $4,653.93  subtract  $572.00  15%  
9^{2}  $2,949.93  $5,024.93  subtract  $743.80  25%  $4,653.93  $7,622.93  subtract  $1,644.00  25% 
$5,024.93  $8,861.93  subtract  $1,052.29  28%  $7,622.93  $10,709.93  subtract  $2,134.39  28%  
$8,861.93  $17,516.93  subtract  $2,023.15  33%  $10,709.93  $17,761.93  subtract  $3,221.30  33%  
$17,516.93  $17,582.93  subtract  $2,828.40  35%  $17,761.93  $19,838.93  subtract  $3,972.09  35%  
$17,582.93  subtract  $4,379.46  39.6%  $19,838.93  subtract  $5,652.35  39.6%  
Instructions  
A. For each employee, use the appropriate payroll period table and marital status section, and select the subsection showing the number of allowances claimed.  
B. Read across the selected subsection and locate the bracket applicable to the employee's gross wages in columns A and B.  
C. Subtract the amount shown in column C from the employee's excess wages (gross wages less amount for allowances claimed).  
Caution.—The adjustment (subtraction) factors shown in this table (instruction C) do not include an amount for the number of allowances claimed by the employee on Form W4. The amount for allowances claimed must be deducted from gross wages before withholding tax is computed.  
D. Multiply the result by the withholding percentage rate shown in column D to obtain the amount of tax to be withheld.  
^{1} If the excess wages are less than the amount to be subtracted, the withholding is zero.  
^{2} You can expand these tables for additional allowances. To do this, increase the wage bracket amounts in the subsection by $155.80 for each additional allowance claimed.  
Wage Bracket Percentage Method Tables for Computing Income Tax Withholding From Wages Exceeding Allowance Amount (For Wages Paid in 2017)
SemiMonthly Payroll Period  

Single Persons  Married Persons  
If the number of allowances is—  And gross wages are—  from excess wages^{1} 
Multiply result by—  And gross wages are—  from excess wages^{1} 
Multiply result by—  
Over  But not over 
Over  But not over 

A  B  C  D  A  B  C  D  
$0  $484.00  subtract  $96.00  10%  $0  $1,138.00  subtract  $360.00  10%  
$484.00  $1,677.00  subtract  $225.33  15%  $1,138.00  $3,523.00  subtract  $619.33  15%  
0  $1,677.00  $3,925.00  subtract  $806.00  25%  $3,523.00  $6,740.00  subtract  $1,780.80  25% 
$3,925.00  $8,081.00  subtract  $1,140.18  28%  $6,740.00  $10,083.00  subtract  $2,312.14  28%  
$8,081.00  $17,458.00  subtract  $2,191.82  33%  $10,083.00  $17,723.00  subtract  $3,489.55  33%  
$17,458.00  $17,529.00  subtract  $3,064.17  35%  $17,723.00  $19,973.00  subtract  $4,302.89  35%  
$17,529.00  subtract  $4,744.43  39.6%  $19,973.00  subtract  $6,123.15  39.6%  
$0  $652.75  subtract  $96.00  10%  $0  $1,306.75  subtract  $360.00  10%  
$652.75  $1,845.75  subtract  $225.33  15%  $1,306.75  $3,691.75  subtract  $619.33  15%  
1  $1,845.75  $4,093.75  subtract  $806.00  25%  $3,691.75  $6,908.75  subtract  $1,780.80  25% 
$4,093.75  $8,249.75  subtract  $1,140.18  28%  $6,908.75  $10,251.75  subtract  $2,312.14  28%  
$8,249.75  $17,626.75  subtract  $2,191.82  33%  $10,251.75  $17,891.75  subtract  $3,489.55  33%  
$17,626.75  $17,697.75  subtract  $3,064.17  35%  $17,891.75  $20,141.75  subtract  $4,302.89  35%  
$17,697.75  subtract  $4,744.43  39.6%  $20,141.75  subtract  $6,123.15  39.6%  
$0  $821.50  subtract  $96.00  10%  $0  $1,475.50  subtract  $360.00  10%  
$821.50  $2,014.50  subtract  $225.33  15%  $1,475.50  $3,860.50  subtract  $619.33  15%  
2  $2,014.50  $4,262.50  subtract  $806.00  25%  $3,860.50  $7,077.50  subtract  $1,780.80  25% 
$4,262.50  $8,418.50  subtract  $1,140.18  28%  $7,077.50  $10,420.50  subtract  $2,312.14  28%  
$8,418.50  $17,795.50  subtract  $2,191.82  33%  $10,420.50  $18,060.50  subtract  $3,489.55  33%  
$17,795.50  $17,866.50  subtract  $3,064.17  35%  $18,060.50  $20,310.50  subtract  $4,302.89  35%  
$17,866.50  subtract  $4,744.43  39.6%  $20,310.50  subtract  $6,123.15  39.6%  
$0  $990.25  subtract  $96.00  10%  $0  $1,644.25  subtract  $360.00  10%  
$990.25  $2,183.25  subtract  $225.33  15%  $1,644.25  $4,029.25  subtract 