Small Business Taxes & Management

Percentage Withholding Tables--2009

 

Small Business Taxes & Management--Copyright 2008, A/N Group, Inc.

 

Contents

Note. There are several other ways to compute withholdings. IRS Publication 15, Circular E, Employer's Tax Guide contains wage bracket tables and detailed explanations. See also IRS Publication 15A, Employer's Supplemental Tax Guide, for alternative withholding methods and information on other situations. You can download these publications at the IRS website at www.irs.ustreas.gov/formspubs/index.html.

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

 

Supplemental Wages--The supplemental wage flat withholding rate for 2009 is 25%.

Backup Withholding--The backup withholding rate for 2009 is 28%.

 

2009 Weekly Payroll Period

2009 Biweekly Payroll Period

2009 Semimonthly Payroll Period

2009 Monthly Payroll Period

2009 Daily Payroll Period

2009 Amount for One Withholding Allowance

Example

 

Weekly Payroll Period--2009

SINGLE person (including head of household)

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

Not over $51                      $0

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

    $51                $200       10%                       $51
   $200                $681       $14.90 plus 15%          $200
   $681              $1,621       $87.05 plus 25%          $681
 $1,621              $3,338       $322.05 plus 28%       $1,621
 $3,338              $7,212       $802.81 plus 33%       $3,338
 $7,212               . . .       $2,081.23 plus 35%     $7,212


MARRIED person

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

Not over $154                     $0

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

   $154                $461       10%                      $154
   $461              $1,455       $30.70 plus 15%          $461
 $1,455              $2,785       $179.80 plus 25%       $1,455
 $2,785              $4,165       $512.30 plus 28%       $2,785
 $4,165              $7,321       $898.70 plus 33%       $4,165
 $7,321               . . .       $1,940.18 plus 35%     $7,321


Biweekly Payroll Period--2009

SINGLE person (including head of household)

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

Not over $102                     $0

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

   $102                $400       10%                      $102
   $400              $1,362       $29.80 plus 15%          $400
 $1,362              $3,242       $174.10 plus 25%       $1,362
 $3,242              $6,677       $644.10 plus 28%       $3,242
 $6,677             $14,423       $1,605.90 plus 33%     $6,677
$14,423               . . .       $4,162.08 plus 35%    $14,423



MARRIED person

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

Not over $308                     $0

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

   $308                $921       10%                      $308
   $921              $2,910       $61.30 plus 15%          $921
 $2,910              $5,569       $359.65 plus 25%       $2,910
 $5,569              $8,331       $1,024.40 plus 28%     $5,569
 $8,331             $14,642       $1,797.76 plus 33%     $8,331
$14,642               . . .       $3,880.39 plus 35%    $14,642

Semimonthly Payroll Period--2009

SINGLE person (including head of household)

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

Not over $110                     $0

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

   $110                $433       10%                      $110
   $433              $1,475       $32.30 plus 15%          $433
 $1,475              $3,513       $188.60 plus 25%       $1,475
 $3,513              $7,233       $698.10 plus 28%       $3,513
 $7,233             $15,625       $1,739.70 plus 33%     $7,233
$15,625               . . .       $4,509.06 plus 35%    $15,625



MARRIED person

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

Not over $333                     $0

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

   $333                $998       10%                      $333
   $998              $3,152       $66.50 plus 15%          $998
 $3,152              $6,033       $389.60 plus 25%       $3,152
 $6,033              $9,025       $1,109.85 plus 28%     $6,033
 $9,025             $15,863       $1,947.61 plus 33%     $9,025
$15,863               . . .       $4,204.15 plus 35%    $15,863

Monthly Payroll Period--2009

SINGLE person (including head of household)

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

Not over $221                     $0

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

   $221                $867       10%                      $221
   $867              $2,950       $64.60 plus 15%          $867
 $2,950              $7,025       $377.05 plus 25%       $2,950
 $7,025             $14,467       $1,395.80 plus 28%     $7,025
$14,467             $31,250       $3,479.56 plus 33%    $14,467
$31,250               . . .       $9,017.95 plus 35%    $31,250


 
MARRIED person

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

Not over $667                     $0

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

   $667              $1,996       10%                      $667
 $1,996              $6,304       $132.90 plus 15%       $1,996
 $6,304             $12,067       $779.10 plus 25%       $6,304
$12,067             $18,050       $2,219.85 plus 28%    $12,067
$18,050             $31,725       $3,895.09 plus 33%    $18,050
$31,725               . . .       $8,407.84 plus 35%    $31,725

Daily Payroll Period--2009

SINGLE person (including head of household)

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

Not over $10.20                   $0

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

   $10.20            $40.00       10%                    $10.20
   $40.00           $136.20       $2.98 plus 15%         $40.00
  $136.20           $324.20       $17.41 plus 25%       $136.20
  $324.20           $667.70       $64.41 plus 28%       $324.20
  $667.70         $1,442.30       $160.59 plus 33%      $667.70
$1,442.30             . . .       $416.21 plus 35%    $1,442.30
 
MARRIED person

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


Not over $30.80                   $0

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

   $30.80            $92.10       10%                    $30.80
   $92.10           $291.00       $6.13 plus 15%         $92.10
  $291.00           $556.90       $35.97 plus 25%       $291.00
  $556.90           $833.10       $102.45 plus 28%      $556.90
  $833.10         $1,464.20       $179.79 plus 33%      $833.10
$1,464.20             . . .       $388.05 plus 35%    $1,464.20
 

Amount for One Withholding Allowance--2009

Payroll Period           One Withholding Allowance

Weekly                   $   70.19
Biweekly                    140.38
Semimonthly                 152.08
Monthly                     304.17
Daily or miscellaneous       14.04
 

Example--An unmarried employee is paid $600 weekly. The employee has in effect a Form W-4 claiming two withholding allowances. Using the percentage method, you would figure the income tax to withhold as follows:

Total wage payment . . . . . . . . . . . . . . . $600.00
Reduction for one allowance . . . . . $70.19
Allowances claimed on W-4 . . . . . .      2
Multiply line 2 by line 3 . . . . . . . . . . .  $140.38
Amount subject to withholding (line 1 less
  line 4 . . . . . . . . . . . . . . . . . . .   $459.62
Tax to be withheld on $459.62  . . . . . . . .   $ 53.84

Note. When using the percentage tables, the tax for the pay period may be rounded to the nearest dollar. If rounding is used, it must be used consistently. Withheld tax amounts should be rounded by dropping amounts under 50 cents and increasing amounts from 50 to 99 cents to the next higher dollar. For example, $2.30 becomes $2 and $2.80 becomes $3.  

 


Copyright 2008 by A/N Group, Inc. This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is distributed with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional should be sought. The information is not necessarily a complete summary of all materials on the subject.--ISSN 1089-1536


--Last update 12/16/08

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