COMPTROLLER.
MARYLAND
Peter Franchot
Cont/r troller
Robert
Sevrtt'ng the People
J. Murphy
Director
Central Payroll Bureau
TO:
All State Agencies
FROM:
Robert J. Murphy, Director
Central Payroll Bureau
DATE:
January 23, 2014
SUBJECT:
2014 Federal Income Tax Withholding Information
The Percentage Method of Withholding is addressed in this memo which includes extractions from
the 2014 Federal Income Tax Withholding Tables (found in the IRS Publication 15, Circular EEmployer's Tax Guide).
Please Note:
~
Advance payment of earned income credit (EIC) through payroll payments expired on December 31,
2010. Individuals eligible for EIC in 2013 can still claim the credit when they file their 2013 federal
income tax return. Additionally any employee who expects to be eligible for the EIC and will have
income tax withheld I'rom wages in 2014 may reduce their withholding in order to receive the benefit
of a portion of the credit throughout the year.
~
The annual personal exemption amount for 2014 will be $ 3,950.00.
~
Tax calculations and estimates of net pay can be readily determined by using the
Cenhal Payroll Bureau Net Pa Calculator located on the home page of our web site-
htt://Com
~
troller.Mar
landtaxes.com/Government
Services/State
Pa roll Services/
Other important links located on our home page are:
2014 Federal Withholding Tables
2014 Maryland Withholding Tables
Annapolis Data Center,
PO. Box 2396, Annapolis, Maryland 21404-2396 410-260-7401 '-888-674-0019 (MD)
'aryland Relay 711 'TY 410-260-7157 'pbtacomp.state.md.us
Fax: 410-974-2473
8
January 23, 2014
Federal Income Tax Information
2014 Federal Income Tax Withholding
Information
- PERCENTAGE METHOD
ALLOWANCE TABLE
Dollar Amount
Number of
Withholding
of Withholdtng
Allowances
Biweekly
Pay Period
Monthly
Pay Period
Allowances
0
0
$
I
151.90
303.80
455.70
607.60.
759.50
911.40
1,063.30
1,251.20
1,367.10
1,519.00
2
3
4
5
6
7
8
9
10
$
0
329.20
658.40
987.60
1,316.80
1,646.00
1,975.20
2,304.40
2,633.60
2,962.80
3,292.00
Over 10 —Multiply amount of one withholding allowance ($ 151.90for bi-weekly or $ 329.20
for monthly) by the number of Allowances claimed.
The annual personal exemption amount of $ 3,950 equals the Bi-Weekly amount of $ 151.90
(1 exemption) multiplied by 26, rounding to nearest whole dollar, or the Monthly amount of
$ 329.20 (1 exemption) multiplied by 12, rounding to nearest whole dollar.
NOTE: Use of these tables to compute estimated tax withholdings will result in amounts that differ
slightly (by a few cents) from the precise amounts computed by the Statewide Payroll System
2
January 23, 2014
Federal Income Tax Information
2014 Federal Income Tax Withholding Information
Tax tables for Percentage Method of Withholding
BIWEEKLY Pa roll Period
Single Person —Including Head of Household
Taxable Income*
Amount of Income Tax Withheld is:
Not over $ 87
0
Over$ 87
$ 436
$ 1,506
$ 3,523
$ 7,254
$ 15,667
But not over-$
-$
10%
0.00
436.....................$
34.90
15%
1,506...................
-$
-$
-$
-$
$
195.40
3,523.................$
7,254.................
$ 699.65
1,744.33
15,667...............$
4,520.62
15,731................$
$4,543.02
$ 15,731.
plus
plus
plus 25%
plus 28%
plus 33%
plus 35%
plus 39.6%
of excess over-$ 87
-$ 436
-$ 1,506
-$ 3,523
-$ 7,254
-$ 15,667
-$ 15,731
Married Person
Amount of Income Tax Withheld is:
Taxable Income*
0
Not over $ 325
Over-
...................
3,163...................$
But not over
-$ 1,023
-$
-$
-$
-$
-$
$ 0.00 plus
69.80 plus
$ 390.80 plus
$ 3,163
$ 1,112.55 plus
$ 6,050
$ 1,952.55 plus
$9,050
$4,215.03 plus
$ 15,906
4,921.68 plus
.$
$ 17,925.
Bi-weekly gross pay less tax sheltered and/or pre-tax
$ 325
$ 1,023
6,050..................
9,050.................
15,906...............
17,925...............
*-
Biweekly withholding
of excess over-$ 325
-$ 1,023
-$ 3,163
-$ 6,050
-$ 9,050
-$ 15,906
-$ 17,925
deductions and the dollar amount of
10%
15%
25%
28%
33%
35%
39.6%
allowances.
NOTE;
have increased the above Tax Bracket thresholds
for each filing
status
~
1nflation adjustments
~
Use of these tables to compute estimated tax withholdings will result in amounts that differ
slightly (by a few cents) from the precise amounts computed by the Statewide Payroll
System.
3
January 23, 2014
Federal Income Tax Information
2014 Federal Income Tax Withholding Information
Tax tables for Percentage Method of Withholding
MONTHLY Pa roll Period
Single Person —Including Head of Household
Amount of Income tax Withheld is:
Taxable Income*
.0
Not over $ 188
But not over-
Over$ 188
$ 944
$ 3,263
$ 7,633
0.00 plus10%
944....................$
15%
-$
-$
-$ 7,633
-$
-$
-$
3,263.................
$ 75.60
$ 15,717
$ 33,946
...............
$423.45
15,717..............
$ 1,515.95
33,946.............
$ 3,779.47
34,083..............
$ 9,795.04
$ 9,842.99
$ 34,083
plus
plus 25%
plus 28%
plus 33%
plus 35%
plus 39.6%
of excess over-$ 188
-$ 944
-$3,263
-$ 7,633
-$ 15,717
-$ 33,946
-$ 34,083
Married Person
Amount of Income Tax Withheld is:
Taxable Income*
.0
Not over $ 704
Over$ 704
$ 2,217
$ 6,854
$ 13,108
$ 19,608
$ 34,463
..............
6,854...............
But not over-$ 2,217
-$
-$
-$
-$
-$
$ 0.00
$ 151.30
$ 846.85
$ 2,410.35
$ 4,230.35
$9,132.50
$ 10,663.75
13,108.............
19,608............
34,463............
38,838.............
$ 38,838
.
plus
plus
plus
plus
plus
plus
plus
10%
15%
25%
28%
33%
35%
39.6%
ofexcess over-$ 704
-$ 2,217
-$ 6,854
-$ 13,108
-$ 19,608
-$ 34,463
-$ 38,838
*- Monthly
gross pay less tax sheltered and/or pre-tax deductions and the dollar amount of
Monthly withholding allowances.
NOTE:
have increased the above Tax Bracket thresholds
for each filing status
~
Inflation adjustments
~
Use of these tables to compute estimated tax withholdings will result in amounts that differ
slightly (by a few cents) from the precise amounts computed by the Statewide Payroll
System.
4
January 23, 2014
Federal Income Tax Information
2014 Federal Income Tax Withholding
Exantyles
of 8'ithholding Calculations
Information
using the Percentage Method
A married employee is paid $ 1,356.09 bi-weekly. This employee has in effect a Form W-4
claiming (0) withholding allowances. The employee also has a deferred comp deduction.
1.
Using the percentage method, the income tax to withhold is computed as follows:
Total wage payment
(0) allowances claimed on W4
Deferred Comp deduction
Amount subject to withholding
(Subtract lines 2 & 3 from line 1)
$ 1,356.09
0.00
$
$ 60.00
$ 1,296.09
BIWEEKLY Pa roll Period for married Person.
$ 1,296.09 falls within the range of $ 1,023 - $ 3,163, the following calculation:
$ 69.80 plus 15% of the amount over $ 1,023
$ 1,296.09 — $ 1,023 = $273.09
$ 273.09 X 0.15 = $ 40.96
Total Federal Tax to be withheld
Add $ 69.80+ $40.96 = $ 110.76
2. An unmarried employee is paid $4,000.00 monthly.
claiming (2) withholding allowances.
This employee has in effect a Form W-4
Using the percentage method, the income tax to withhold is computed as follows:
Total wage payment
(2) allowances claimed on W4
(From the Allowance table)
Deferred Comp deduction
Amount subject to withholding
(Subtract lines 2 & 3 from line 1)
$4,000.00
$ 658.40
0.00
$
3,341.60
$
MONTHLY Pa roll Period for unmarried Person.
$ 3,341.60 falls within the range
of $ 3,263 - $ 7,633, use the following calculation:
$423.45 plus 25% of the amount over $ 3,263
$ 3,341.60 - $ 3,263 = $ 78.60
$ 78.60 X 0.25 = $ 19.65
Total Federal Tax to be withheld
Add $ 423.45 + $ 19.65 = $443.10
5