How To Read A 2009 Payroll Tax Table

If you would like to find out how much federal withholding tax you should have withheld from your paycheck, you need to take a look at the payroll tax table that the IRS makes available to employers on their website. Here is a guide on how to obtain the federal withholding tax rate table and how to use it to find out how much your employer should withhold from your paycheck.

Get the IRS Federal Withholding Tax Tables

Visit the IRS website and download IRS Publication 15-T; this publication is also referred to as the New Wage Withholding and Advance Earned Income Credit Payment Tables. The publication is produced in a PDF format, and you will need a PDF reader such as Adobe Acrobat reader or Foxit reader in order to view the publication.

Federal Withholding Tax Calculation Methods

The IRS provides employers with two methods for determining how much income tax to withhold from your paycheck. The first method uses a percentage rate that is applied based on a sliding scale that varies depending upon your income level. The other method used is an actual dollar amount to be deducted for a certain income range based on pay period frequency and your number of W-4 deductions.

Calculating Your Federal Withholding Tax Amounts

In order to calculate your federal withholding tax amount, you will first need to find out which method your employer uses for calculating tax rates. However, regardless if the of the method used by your employer, the resulting amount of federal income tax withheld from your paycheck should be almost the same. In some circumstances, there may be slight differences because of rounding a dollar amount up or down when using the percentage method as well as one or two dollar differences because of the method used.

To find out how much withholding tax should be withheld from your paycheck, you will need to know the amount of your gross pay.

Withholding Rates Using the Percentage Method

To use the percentage method, go to page 5 of IRS publication 15-T. On this page, you will see percentage tables based on the frequency of your pay period. For each type of pay period, there will also be an “A” and “B” section - “A” for single persons and “B” for married her persons. Choose your correct filing status and your income range. Then, multiply your gross income by the percentage amount listed in the table.

For example, if you earn $1000 every two weeks, and are single, you would use the percentage rate under section A of table 2 - Biweekly Pay Period. According to the table, $1000 paid every two weeks falls in the income range of being over $400 but less than $1392, and the corresponding percentage rate for withholding tax is 15% for the entire amount over $400. The table also reflects that you need to add an additional $12.40 to the calculated amount in order to obtain the correct withholding figure. So, the resulting withholding tax to be withheld from your paycheck would be $102.40 ($1000-$400=$600 x 15% =$90 +$12.40 = $102.40).

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