Publication 51 – Introductory Material

Future Developments

For the latest information about developments related to Pub. 51, such as legislation enacted after it was published, go to IRS.gov/pub51.

What’s New

Social security and Medicare tax for 2017. The social security tax rate is 6.2% each for the employee and employer, unchanged from 2016. The social security wage base limit is $127,200.The Medicare tax rate is 1.45% each for the employee and employer, unchanged from 2016. There is no wage base limit for Medicare tax.Social security and Medicare taxes apply to the wages of household workers you pay $2,000 or more in cash in 2017.

2017 withholding tables. This publication includes the 2017 Percentage Method Tables and Wage Bracket Method Tables for Income Tax Withholding.

Withholding allowance. The 2017 amount for one withholding allowance on an annual basis is $4,050.

New certification program for professional employer organizations. The Tax Increase Prevention Act of 2014 required the IRS to establish a voluntary certification program for professional employer organizations (PEOs). PEOs handle various payroll administration and tax reporting responsibilities for their business clients and are typically paid a fee based on payroll costs. To become and remain certified under the certification program, certified professional employer organizations (CPEOs) must meet tax status, background, experience, business location, financial reporting, bonding, and other requirements described in sections 3511 and 7705 and related published guidance. The IRS began accepting applications for PEO certification in July 2016. Certification as a CPEO affects the employment tax liabilities of both the CPEO and its customers. A CPEO is generally treated as the employer of any individual performing services for a customer of the CPEO and covered by a contract described in section 7705(e)(2) between the CPEO and the customer (CPEO contract), but only for wages and other compensation paid to the individual by the CPEO. For more information, visit IRS.gov and enter “CPEO” in the search box.

Leave-based donation programs to aid victims of the severe storms and flooding in Louisiana. Under these programs, employees may donate their vacation, sick, or personal leave in exchange for employer cash payments made before January 1, 2018, to qualified tax-exempt organizations providing relief for the victims of the severe storms and flooding in Louisiana that began on August 11, 2016. The donated leave won’t be included in the income or wages of the employee. The employer may deduct the cash payments as business expenses or charitable contributions. For more information, see Notice 2016-55, 2016-40 I.R.B. 432, available at IRS.gov/irb/2016-40_IRB/ar08.html.

Leave-based donation programs to aid victims of Hurricane Matthew. Under these programs, employees may donate their vacation, sick, or personal leave in exchange for employer cash payments made before January 1, 2018, to qualified tax-exempt organizations providing relief for the victims of Hurricane Matthew. The donated leave won’t be included in the income or wages of the employee. The employer may deduct the cash payments as business expenses or charitable contributions. For more information, see Notice 2016-69, 2016-51 I.R.B. 832, available at IRS.gov/irb/2016-51_IRB/ar11.html.

Reminders

Work opportunity tax credit for qualified tax-exempt organizations hiring qualified veterans. The work opportunity tax credit is available for eligible unemployed veterans who begin work after November 22, 2011, and before January 1, 2020. Qualified tax-exempt organizations that hire eligible unemployed veterans can claim the work opportunity tax credit against their payroll tax liability using Form 5884-C. For more information, visit IRS.gov and enter “work opportunity tax credit” in the search box.

COBRA premium assistance credit. Effective for tax periods beginning after December 31, 2013, the credit for COBRA premium assistance payments can’t be claimed on Form 943, Employer’s Annual Federal Tax Return for Agricultural Employees. Instead, after filing your Form 943, file Form 943-X, Adjusted Employer’s Annual Federal Tax Return for Agricultural Employees or Claim for Refund, to claim the COBRA premium assistance credit. Filing a Form 943-X before filing a Form 943 for the year may result in errors or delays in processing your Form 943-X. For more information, see the Instructions for Form 943 or visit IRS.gov and enter “COBRA” in the search box.

Same-sex marriage. A marriage of two individuals is recognized for federal tax purposes if the marriage is recognized by the state, possession, or territory of the United States in which the marriage is entered into, regardless of legal residence. Two individuals who enter into a relationship that is denominated as marriage under the laws of a foreign jurisdiction are recognized as married for federal tax purposes if the relationship would be recognized as marriage under the laws of at least one state, possession, or territory of the United States, regardless of legal residence. Individuals who have entered into a registered domestic partnership, civil union, or other similar relationship that isn’t denominated as a marriage under the law of the state, possession, or territory of the United States where such relationship was entered into aren’t considered married for federal tax purposes, regardless of legal residence. Notice 2013-61 provides special administrative procedures for employers to make claims for refunds or adjustments of overpayments of social security and Medicare taxes with respect to certain same-sex spouse benefits before expiration of the period of limitations. Notice 2013-61, 2013-44 I.R.B. 432, is available at IRS.gov/irb/2013-44_IRB/ar10.html. You may correct errors to federal income tax withholding and Additional Medicare Tax withheld for prior years if the amount reported on your employment tax return doesn’t agree with the amount you actually withheld. This type of error is an administrative error. You may also correct errors to federal income tax withholding and Additional Medicare Tax withheld for prior years if section 3509 rates apply.

Outsourcing payroll duties. Unless the wages and other compensation paid to the individual performing services for you are paid by a CPEO and are covered by a contract described in section 7705(e)(2) between you and a CPEO (CPEO contract), you’re responsible to ensure that tax returns are filed and deposits and payments are made, even if you contract with a third party to perform these acts. You remain responsible if the third party fails to perform any required action. If you choose to outsource any of your payroll and related tax duties (that is, withholding, reporting, and paying over social security, Medicare, FUTA, and income taxes) to a third-party payer, such as a payroll service provider or reporting agent, visit IRS.gov and enter “outsourcing payroll duties” in the search box for helpful information on this topic.

Disregarded entities and qualified subchapter S subsidiaries (QSubs). Eligible single-owner disregarded entities and QSubs are treated as separate entities for employment tax purposes. Eligible single-member entities must report and pay employment taxes on wages paid to their employees using the entities’ own names and EINs. See Regulations sections 1.1361-4(a)(7) and 301.7701-2(c)(2)(iv).

Differential wage payments. Qualified differential wage payments made by employers to individuals serving in the Armed Forces after 2008 are subject to income tax withholding but not social security, Medicare, or FUTA taxes. For more information, see Pub. 15.

Federal tax deposits must be made by electronic funds transfer (EFT). You must use EFT to make all federal tax deposits. Generally, an EFT is made using the Electronic Federal Tax Payment System (EFTPS). If you don’t want to use EFTPS, you can arrange for your tax professional, financial institution, payroll service, or other trusted third party to make electronic deposits on your behalf. Also, you may arrange for your financial institution to initiate a same-day wire payment on your behalf. EFTPS is a free service provided by the Department of Treasury. Services provided by your tax professional, financial institution, payroll service, or other third party may have a fee.For more information on making federal tax deposits, see How To Deposit in section 7. To get more information about EFTPS or to enroll in EFTPS, visit eftps.gov or call 1-800-555-4477 or 1-800-733-4829 (TDD). Additional information about EFTPS is also available in Pub. 966.

Electronic filing and payment. Now, more than ever before, businesses can enjoy the benefits of filing tax returns and paying their taxes electronically. Whether you rely on a tax professional or handle your own taxes, the IRS offers you convenient programs to make it easier.Spend less time and worry on taxes and more time running your business. Use e-file and EFTPS to your benefit.

• For e-file, visit the IRS website at IRS.gov/employmentefile for additional information.
• For EFTPS, visit eftps.gov or call EFTPS Customer Service at 1-800-555-4477 or 1-800-733-4829 (TDD) for additional information.
• For electronic filing of Form W-2, visit socialsecurity.gov/employer.

Publication 51 – Introductory Material

Future Developments

For the latest information about developments related to Pub. 51, such as legislation enacted after it was published, go to IRS.gov/pub51.

What’s New

Social security and Medicare tax for 2017. The social security tax rate is 6.2% each for the employee and employer, unchanged from 2016. The social security wage base limit is $127,200.The Medicare tax rate is 1.45% each for the employee and employer, unchanged from 2016. There is no wage base limit for Medicare tax.Social security and Medicare taxes apply to the wages of household workers you pay $2,000 or more in cash in 2017.

2017 withholding tables. This publication includes the 2017 Percentage Method Tables and Wage Bracket Method Tables for Income Tax Withholding.

Withholding allowance. The 2017 amount for one withholding allowance on an annual basis is $4,050.

New certification program for professional employer organizations. The Tax Increase Prevention Act of 2014 required the IRS to establish a voluntary certification program for professional employer organizations (PEOs). PEOs handle various payroll administration and tax reporting responsibilities for their business clients and are typically paid a fee based on payroll costs. To become and remain certified under the certification program, certified professional employer organizations (CPEOs) must meet tax status, background, experience, business location, financial reporting, bonding, and other requirements described in sections 3511 and 7705 and related published guidance. The IRS began accepting applications for PEO certification in July 2016. Certification as a CPEO affects the employment tax liabilities of both the CPEO and its customers. A CPEO is generally treated as the employer of any individual performing services for a customer of the CPEO and covered by a contract described in section 7705(e)(2) between the CPEO and the customer (CPEO contract), but only for wages and other compensation paid to the individual by the CPEO. For more information, visit IRS.gov and enter “CPEO” in the search box.

Leave-based donation programs to aid victims of the severe storms and flooding in Louisiana. Under these programs, employees may donate their vacation, sick, or personal leave in exchange for employer cash payments made before January 1, 2018, to qualified tax-exempt organizations providing relief for the victims of the severe storms and flooding in Louisiana that began on August 11, 2016. The donated leave won’t be included in the income or wages of the employee. The employer may deduct the cash payments as business expenses or charitable contributions. For more information, see Notice 2016-55, 2016-40 I.R.B. 432, available at IRS.gov/irb/2016-40_IRB/ar08.html.

Leave-based donation programs to aid victims of Hurricane Matthew. Under these programs, employees may donate their vacation, sick, or personal leave in exchange for employer cash payments made before January 1, 2018, to qualified tax-exempt organizations providing relief for the victims of Hurricane Matthew. The donated leave won’t be included in the income or wages of the employee. The employer may deduct the cash payments as business expenses or charitable contributions. For more information, see Notice 2016-69, 2016-51 I.R.B. 832, available at IRS.gov/irb/2016-51_IRB/ar11.html.

Reminders

Work opportunity tax credit for qualified tax-exempt organizations hiring qualified veterans. The work opportunity tax credit is available for eligible unemployed veterans who begin work after November 22, 2011, and before January 1, 2020. Qualified tax-exempt organizations that hire eligible unemployed veterans can claim the work opportunity tax credit against their payroll tax liability using Form 5884-C. For more information, visit IRS.gov and enter “work opportunity tax credit” in the search box.

COBRA premium assistance credit. Effective for tax periods beginning after December 31, 2013, the credit for COBRA premium assistance payments can’t be claimed on Form 943, Employer’s Annual Federal Tax Return for Agricultural Employees. Instead, after filing your Form 943, file Form 943-X, Adjusted Employer’s Annual Federal Tax Return for Agricultural Employees or Claim for Refund, to claim the COBRA premium assistance credit. Filing a Form 943-X before filing a Form 943 for the year may result in errors or delays in processing your Form 943-X. For more information, see the Instructions for Form 943 or visit IRS.gov and enter “COBRA” in the search box.

Same-sex marriage. A marriage of two individuals is recognized for federal tax purposes if the marriage is recognized by the state, possession, or territory of the United States in which the marriage is entered into, regardless of legal residence. Two individuals who enter into a relationship that is denominated as marriage under the laws of a foreign jurisdiction are recognized as married for federal tax purposes if the relationship would be recognized as marriage under the laws of at least one state, possession, or territory of the United States, regardless of legal residence. Individuals who have entered into a registered domestic partnership, civil union, or other similar relationship that isn’t denominated as a marriage under the law of the state, possession, or territory of the United States where such relationship was entered into aren’t considered married for federal tax purposes, regardless of legal residence. Notice 2013-61 provides special administrative procedures for employers to make claims for refunds or adjustments of overpayments of social security and Medicare taxes with respect to certain same-sex spouse benefits before expiration of the period of limitations. Notice 2013-61, 2013-44 I.R.B. 432, is available at IRS.gov/irb/2013-44_IRB/ar10.html. You may correct errors to federal income tax withholding and Additional Medicare Tax withheld for prior years if the amount reported on your employment tax return doesn’t agree with the amount you actually withheld. This type of error is an administrative error. You may also correct errors to federal income tax withholding and Additional Medicare Tax withheld for prior years if section 3509 rates apply.

Outsourcing payroll duties. Unless the wages and other compensation paid to the individual performing services for you are paid by a CPEO and are covered by a contract described in section 7705(e)(2) between you and a CPEO (CPEO contract), you’re responsible to ensure that tax returns are filed and deposits and payments are made, even if you contract with a third party to perform these acts. You remain responsible if the third party fails to perform any required action. If you choose to outsource any of your payroll and related tax duties (that is, withholding, reporting, and paying over social security, Medicare, FUTA, and income taxes) to a third-party payer, such as a payroll service provider or reporting agent, visit IRS.gov and enter “outsourcing payroll duties” in the search box for helpful information on this topic.

Disregarded entities and qualified subchapter S subsidiaries (QSubs). Eligible single-owner disregarded entities and QSubs are treated as separate entities for employment tax purposes. Eligible single-member entities must report and pay employment taxes on wages paid to their employees using the entities’ own names and EINs. See Regulations sections 1.1361-4(a)(7) and 301.7701-2(c)(2)(iv).

Differential wage payments. Qualified differential wage payments made by employers to individuals serving in the Armed Forces after 2008 are subject to income tax withholding but not social security, Medicare, or FUTA taxes. For more information, see Pub. 15.

Federal tax deposits must be made by electronic funds transfer (EFT). You must use EFT to make all federal tax deposits. Generally, an EFT is made using the Electronic Federal Tax Payment System (EFTPS). If you don’t want to use EFTPS, you can arrange for your tax professional, financial institution, payroll service, or other trusted third party to make electronic deposits on your behalf. Also, you may arrange for your financial institution to initiate a same-day wire payment on your behalf. EFTPS is a free service provided by the Department of Treasury. Services provided by your tax professional, financial institution, payroll service, or other third party may have a fee.For more information on making federal tax deposits, see How To Deposit in section 7. To get more information about EFTPS or to enroll in EFTPS, visit eftps.gov or call 1-800-555-4477 or 1-800-733-4829 (TDD). Additional information about EFTPS is also available in Pub. 966.

Electronic filing and payment. Now, more than ever before, businesses can enjoy the benefits of filing tax returns and paying their taxes electronically. Whether you rely on a tax professional or handle your own taxes, the IRS offers you convenient programs to make it easier.Spend less time and worry on taxes and more time running your business. Use e-file and EFTPS to your benefit.

• For e-file, visit the IRS website at IRS.gov/employmentefile for additional information.
• For EFTPS, visit eftps.gov or call EFTPS Customer Service at 1-800-555-4477 or 1-800-733-4829 (TDD) for additional information.
• For electronic filing of Form W-2, visit socialsecurity.gov/employer.

 

If you’re filing your tax return or paying your federal taxes electronically, a valid EIN is required. If a valid EIN isn’t provided, the return or payment won’t be processed. This may result in penalties and delays in processing your return or payment.

Electronic funds withdrawal (EFW). If you file your employment tax return electronically, you can e-file and e-pay (electronic funds withdrawal) the balance due in a single step using tax preparation software or through a tax professional. However, don’t use EFW to make federal tax deposits. For more information on paying your taxes using EFW, visit the IRS website at IRS.gov/payments. A fee may be charged to file electronically.

Credit or debit card payments. You can pay the balance due shown on your employment tax return by credit or debit card. Don’t use a credit or debit card to make federal tax deposits. For more information on paying your taxes with a credit or debit card, visit the IRS website at IRS.gov/payments.

Online payment agreement. You may be eligible to apply for an installment agreement online if you have a balance due when you file your employment tax return. For more information, see the instructions for your employment tax return or visit the IRS website at IRS.gov/opa.

When you hire a new employee. Ask each new employee to complete the 2017 Form W-4, or its Spanish version, Formulario W-4(SP). Also, ask the employee to show you his or her social security card so that you can record the employee’s name and social security number (SSN) accurately. If the employee has lost the card or recently changed names, have the employee apply for a duplicate or corrected card. If the employee doesn’t have a card, have the employee apply for one on Form SS-5, Application for a Social Security Card. See section 1 for more information.

Eligibility for employment. You must verify that each new employee is legally eligible to work in the United States. This includes completing the U.S. Citizenship and Immigration Services (USCIS) Form I-9, Employment Eligibility Verification. You can get Form I-9 at uscis.gov/forms, USCIS offices, or by calling 1-800-870-3676. For more information, visit the USCIS website at uscis.gov/i-9-central or call 1-800-375-5283 or 1-800-767-1833 (TDD).

New hire reporting. You’re required to report any new employee to a designated state new-hire registry. A new employee is an employee who hasn’t previously been employed by you or was previously employed by you but has been separated from such prior employment for at least 60 consecutive days. Many states accept a copy of Form W-4 with employer information added. Visit the Office of Child Support Enforcement’s website at acf.hhs.gov/css/employers for more information.

Dishonored payments. Any form of payment that is dishonored and returned from a financial institution is subject to a penalty. The penalty is $25 or 2% of the payment, whichever is more. However, the penalty on dishonored payments of $24.99 or less is an amount equal to the payment. For example, a dishonored payment of $18 is charged a penalty of $18.

Forms in Spanish. You can provide Formulario W-4(SP) in place of Form W-4 to your Spanish-speaking employees. For more information, see Pub. 17(SP), El Impuesto Federal sobre los Ingresos (Para Personas Físicas).For nonemployees, Formulario W-9(SP), Solicitud y Certificación del Número de Identificación del Contribuyente, may be used in place of Form W-9, Request for Taxpayer Identification Number and Certification.References in this publication to Form W-4 or Form W-9 also apply to their equivalent Spanish translations—Formulario W-4(SP) or Formulario W-9(SP).

Information returns. You may be required to file information returns to report certain types of payments made during the year. For example, you must file Form 1099-MISC, Miscellaneous Income, to report payments of $600 or more to persons not treated as employees (for example, independent contractors) for services performed for your trade or business. For details about filing Forms 1099 and for information about required electronic filing, see the General Instructions for Certain Information Returns for general information and the separate, specific instructions for each information return that you file (for example, Instructions for Form 1099-MISC). Generally, don’t use Forms 1099 to report wages or other compensation that you paid to employees; report these amounts on Form W-2.See the General Instructions for Forms W-2 and W-3 for details about filing Forms W-2 and for information about required electronic filing. If you file 250 or more Forms W-2, you must file them electronically. The IRS and the Social Security Administration (SSA) won’t accept information returns on magnetic media.

Information reporting customer service site. The IRS operates an information return customer service site to answer questions about reporting on Forms W-2, W-3, 1099, and other information returns. If you have questions related to reporting on information returns, you may call 1-866-455-7438 (toll free), 304-263-8700 (toll call), or 304-579-4827 (TDD/TTY for persons who are deaf, hard of hearing, or have a speech disability). The call site can also be reached by email at mccirp@irs.gov. Don’t include tax identification numbers (TINs) or attachments in email correspondence because electronic mail isn’t secure.

Web-based application for an employer identification number (EIN). Visit the IRS website at IRS.gov/ein to apply for an EIN online. See section 1 for additional information.

When a crew leader furnishes workers to you. Record the crew leader’s name, address, and EIN. See sections 2and 10.

Change of address. Use Form 8822-B to notify the IRS of an address change. Don’t mail Form 8822-B with your employment tax return.

Change of responsible party. Any entity with an EIN must file Form 8822-B to report a change to its responsible party. Form 8822-B must be filed within 60 days of the change. For a definition of “responsible party,” see the Form 8822-B instructions.

Ordering forms and publications. Visit IRS.gov/forms to download forms and publications. Otherwise, you can go to IRS.gov/orderforms to order current- and prior-year forms and instructions. Your order should arrive within 10 business days. Instead of ordering paper Forms W-2 and W-3, consider filing them electronically using the SSA’s free e-file service. Visit the SSA’s Employer W-2 Filing Instructions & Information website at socialsecurity.gov/employer to register for Business Services Online. You will be able to create and file “fill-in” versions of Forms W-2 with the SSA and can print out completed copies of Forms W-2 for filing with state and local governments, distribution to your employees, and for your records. Form W-3 will be created for you based on your Forms W-2.

Tax questions. If you have an employment tax question, check the information available on IRS.gov or call 1-800-829-4933 or 1-800-829-4059 (TDD/TTY for persons who are deaf, hard of hearing, or have a speech disability) Monday–Friday from 7:00 a.m. to 7:00 p.m. local time (Alaska and Hawaii follow Pacific time).

Recordkeeping. Keep all records of employment taxes for at least 4 years. These should be available for IRS review. Your records should include the following information.

• Your EIN.
• Amounts and dates of all wage, annuity, and pension payments.
• Names, addresses, SSNs, and occupations of employees and recipients.
• Any employee copies of Forms W-2 and W-2c returned to you as undeliverable.
• Dates of employment for each employee.
• Periods for which employees and recipients were paid while absent due to sickness or injury and the amount and weekly rate of payments you or third-party payers made to them.
• Copies of employees’ and recipients’ income tax withholding allowance certificates (Forms W-4, W-4(SP), W-4P, and W-4S).
• Dates and amounts of tax deposits you made and acknowledgment numbers for deposits made by EFTPS.
• Copies of returns filed and confirmation numbers.
• Records of fringe benefits and expense reimbursements provided to your employees, including substantiation.

If a crew leader furnished you with farmworkers, you must keep a record of the name, permanent mailing address, and EIN of the crew leader. If the crew leader has no permanent mailing address, record his or her present address.

Private delivery services. You can use certain private delivery services designated by the IRS to send tax returns and payments. The list includes only the following.

• DHL Express: DHL Express 9:00, DHL Express 10:30, DHL Express 12:00, DHL Express Worldwide, DHL Express Envelope, DHL Import Express 10:30, DHL Import Express 12:00, and DHL Import Express Worldwide.
• Federal Express (FedEx): FedEx First Overnight, FedEx Priority Overnight, FedEx Standard Overnight, FedEx 2 Day, FedEx International Next Flight Out, FedEx International Priority, FedEx International First, and FedEx International Economy.
• United Parcel Service (UPS): UPS Next Day Air Early AM, UPS Next Day Air, UPS Next Day Air Saver, UPS 2nd Day Air, UPS 2nd Day Air A.M., UPS Worldwide Express Plus, and UPS Worldwide Express.

For the IRS mailing address to use if you’re using a private delivery service, go to IRS.gov and enter “private delivery service” in the search box.Your private delivery service can tell you how to get written proof of the mailing date.

Private delivery services can’t deliver items to P.O. boxes. You must use the U.S. Postal Service to mail any item to an IRS P.O. box address.

Zero Wage return. If you haven’t filed a “final” Form 940, Employer’s Annual Federal Unemployment (FUTA) Tax Return, or Form 943, you must continue to file Forms 940 and 943 even for years during which you paid no wages. The IRS encourages you to file your “Zero Wage” Forms 940 and 943 electronically. Visit the IRS website at IRS.gov/employmentefile for more information on electronic filing.

Pub. 5146 explains employment tax examinations and appeal rights. Pub. 5146 provides employers with information on how the IRS selects employment tax returns to be examined, what happens during an exam, and what options an employer has in responding to the results of an exam, including how to appeal the results. Pub. 5146 also includes information on worker classification issues and tip exams.

Photographs of missing children. The IRS is a proud partner with the National Center for Missing & Exploited Children® (NCMEC). Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child.

Calendar

The following are important dates and responsibilities. See section 7 for information about depositing taxes reported on Forms 943 and 945. See section 10 for information about depositing FUTA tax. Also see Pub. 509, Tax Calendars.

 

If any date shown below for filing a return, furnishing a form, or depositing taxes falls on a Saturday, Sunday, or legal holiday, the due date is the next business day. A statewide legal holiday delays a filing due date only if the IRS office where you’re required to file is located in that state. However, a statewide legal holiday doesn’t delay the due date of federal tax deposits. See Deposits Due on Business Days Only in section 7. For any filing due date, you will meet the “file” or “furnish” requirement if the envelope containing the return or form is properly addressed, contains sufficient postage, and is postmarked by the U.S. Postal Service on or before the due date, or sent by an IRS-designated delivery service on or before the due date. See Private delivery services under Reminders for more information.

By January 31 .

• File Form 943. See section 8 for more information on Form 943. If you deposited all Form 943 taxes when due, you may file Form 943 by February 10.
• File Form 940. See section 10 for more information on FUTA. If you deposited all the FUTA tax when due, you may file Form 940 by February 10.
• File with the SSA Copy A of all 2016 paper and electronic Forms W-2 with Form W-3, Transmittal of Wage and Tax Statements. For more information on reporting Form W-2 information to the SSA electronically, visit the SSA’s Employer W-2 Filing Instructions & Information webpage at socialsecurity.gov/employer. If filing electronically, the SSA will generate Form W-3 data from the electronic submission of Form(s) W-2.
• Furnish each employee with a completed Form W-2.
• File with the IRS Copy A of all 2016 paper and electronic Forms 1099-MISC that report nonemployee compensation, with Form 1096, Annual Summary and Transmittal of U.S. Information Returns. For information on filing information returns electronically with the IRS, see Pub. 1220.
• Furnish each recipient to whom you paid $600 or more in nonemployee compensation with a completed Form 1099-MISC.
• File Form 945, Annual Return of Withheld Federal Income Tax, to report any nonpayroll federal income tax withheld in 2016. If you deposited all Form 945 taxes when due, you may file Form 945 by February 10.

By February 15. Ask for a new Form W-4 or Formulario W-4(SP) from each employee who claimed exemption from federal income tax withholding last year.

On February 16. Any Form W-4 claiming exemption from withholding for the previous year has now expired. Begin withholding for any employee who previously claimed exemption from withholding but hasn’t given you a new Form W-4 for the current year. If the employee doesn’t give you a new Form W-4, withhold tax based on the last valid Form W-4 you have for the employee that doesn’t claim exemption from withholding or, if one doesn’t exist, as if he or she is single with zero withholding allowances. See section 5 for more information. If the employee furnishes a new Form W-4 claiming exemption from withholding after February 15, you may apply the exemption to future wages, but don’t refund taxes withheld while the exempt status wasn’t in place.

By April 30, July 31, October 31, and January 31. Deposit FUTA taxes. Deposit FUTA tax if the undeposited amount is over $500.

Before December 1. Remind employees to submit a new Form W-4 if their marital status or withholding allowances have changed or will change for the next year.

Introduction

This publication is for employers of agricultural workers (farmworkers). It contains information that you may need to comply with the laws for agricultural labor (farmwork) relating to social security and Medicare taxes, FUTA tax, and withheld federal income tax (employment taxes). Agricultural employers report social security and Medicare taxes and withheld federal income tax on Form 943 and report FUTA tax on Form 940.

When you pay your employees, you don’t pay them all the money they earned. As their employer, you have the added responsibility of withholding taxes from their paychecks. The federal income tax and employees’ share of social security and Medicare taxes that you withhold from your employees’ paychecks are part of their wages that you pay to the United States Treasury instead of to your employees. Your employees trust that you pay the withheld taxes to the United States Treasury by making federal tax deposits. This is the reason that these withheld taxes are called trust fund taxes. If federal income, social security, or Medicare taxes that must be withheld aren’t withheld or aren’t deposited or paid to the United States Treasury, the trust fund recovery penalty may apply. See section 7 for more information.

If you have nonfarm employees, see Pub. 15. If you have employees in the U.S. Virgin Islands, Guam, American Samoa, or the Commonwealth of the Northern Mariana Islands, see Pub. 80. Pub. 15-A contains more employment-related information, including information about sick pay and pension income. Pub. 15-B contains information about the employment tax treatment and valuation of various types of noncash compensation.

Comments and suggestions.

We welcome your comments about this publication and your suggestions for future editions.

You can send us comments from IRS.gov/formcomment.

Or you can write to:

 

Internal Revenue Service

Tax Forms and Publications

1111 Constitution Ave. NW, IR-6526

Washington, DC 20224

We respond to many letters by telephone. Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence.

Although we can’t respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax forms, instructions, and publications. We can’t answer tax questions sent to the above address.

 

 

 

COBRA premium assistance credit.

The Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) provides certain former employees, retirees, spouses, former spouses, and dependent children the right to temporary continuation of health coverage at group rates. COBRA generally covers multiemployer health plans and health plans maintained by private-sector employers (other than churches) with 20 or more full- and part-time employees. Parallel requirements apply to these plans under the Employee Retirement Income Security Act of 1974 (ERISA). Under the Public Health Service Act, COBRA requirements apply also to health plans covering state or local government employees. Similar requirements apply under the Federal Employees Health Benefits Program and under some state laws. For the premium assistance (or subsidy) discussed below, these requirements are all referred to as COBRA requirements.

Under the American Recovery and Reinvestment Act of 2009 (ARRA), employers are allowed a credit against “payroll taxes” (referred to in this publication as “employment taxes”) for providing COBRA premium assistance to assistance-eligible individuals. For periods of COBRA continuation coverage beginning after February 16, 2009, a group health plan must treat an assistance-eligible individual as having paid the required COBRA continuation coverage premium if the individual elects COBRA coverage and pays 35% of the amount of the premium.

An assistance-eligible individual is a qualified beneficiary of an employer’s group health plan who is eligible for COBRA continuation coverage during the period beginning September 1, 2008, and ending May 31, 2010, due to the involuntary termination from employment of a covered employee during the period and elects continuation COBRA coverage. The assistance for the coverage can last up to 15 months.

The COBRA premium assistance credit was available to an employer for premiums paid on behalf of employees who were involuntarily terminated from employment between September 1, 2008, and May 31, 2010. The COBRA premium assistance credit isn’t available for individuals who were involuntarily terminated after May 31, 2010. Therefore, only in rare circumstances will the credit still be available, such as instances where COBRA eligibility was delayed as a result of employer-provided health insurance coverage following termination. For more information about the credit, see Notice 2009-27, 2009-16 I.R.B. 838, available at IRS.gov/irb/2009-16_irb/ar09.html.

Administrators of the group health plans (or other entities) that provide or administer COBRA continuation coverage must provide notice to assistance-eligible individuals of the COBRA premium assistance.

The 65% of the premium not paid by the assistance-eligible individual is reimbursed to the employer maintaining the group health plan. The reimbursement is made through a credit against the employer’s employment tax liabilities. For information on how to claim the credit, see the Instructions for Form 943-X. The credit is treated as a deposit made on the first day of the return period. In the case of a multiemployer plan, the credit is claimed by the plan, rather than the employer. In the case of an insured plan subject to state law continuation coverage requirements, the credit is claimed by the insurance company, rather than the employer.

Anyone claiming the credit for COBRA premium assistance payments must maintain the following information to support their claim.

• Information on the receipt of the assistance-eligible individuals’ 35% share of the premium, including dates and amounts.
• In the case of an insurance plan, a copy of an invoice or other supporting statement from the insurance carrier and proof of timely payment of the full premium to the insurance carrier required under COBRA.
• In the case of a self-insured plan, proof of the premium amount and proof of the coverage provided to the assistance-eligible individuals.
• Attestation of involuntary termination, including the date of the involuntary termination for each covered employee whose involuntary termination is the basis for eligibility for the subsidy.
• Proof of each assistance-eligible individual’s eligibility for COBRA coverage and the election of COBRA coverage.
• A record of the SSNs of all covered employees, the amount of the subsidy reimbursed with respect to each covered employee, and whether the subsidy was for one individual or two or more individuals.

For more information, visit IRS.gov and enter “COBRA” in the search box.

 

 

 

Useful Items – You may want to see:

Publication

• 15 Employer’s Tax Guide
• 15-A Employer’s Supplemental Tax Guide
• 15-B Employer’s Tax Guide to Fringe Benefits
• 225 Farmer’s Tax Guide
• 535 Business Expenses
• 583 Starting a Business and Keeping Records
• 1635 Employer Identification Number: Understanding Your EIN

Publication 51 – Main Content

1. Taxpayer Identification Numbers (TINs)

If you’re required to withhold any federal income, social security, or Medicare taxes, you will need an EIN for yourself. Also, you will need the SSN of each employee and the name of each employee as shown on the employee’s social security card.

Employer identification number (EIN).

An EIN is a nine-digit number that the IRS issues. The digits are arranged as follows: 00-0000000. It is used to identify the tax accounts of employers and certain others who have no employees. Use your EIN on all of the items that you send to the IRS and the SSA.

If you don’t have an EIN, you may apply for one online by visiting the IRS website at IRS.gov/ein. You may also apply for an EIN by faxing or mailing Form SS-4 to the IRS. Don’t use an SSN in place of an EIN.

If you don’t have an EIN by the time a return is due, file a paper return and write “Applied For” and the date you applied for it in the space shown for the number. If you took over another employer’s business, don’t use that employer’s EIN.

You should have only one EIN. If you have more than one, and aren’t sure which one to use, call the toll-free Business and Specialty Tax Line at 1-800-829-4933 or 1-800-829-4059 (TDD/TTY for persons who are deaf, hard of hearing, or have a speech disability). Provide the EINs that you have, the name and address to which each number was assigned, and the address of your principal place of business. The IRS will tell you which EIN to use. For more information, see Pub. 1635.

 

 

 

When you receive your EIN.

If you’re a new employer that indicated a federal tax obligation when requesting an EIN, you will be pre-enrolled in EFTPS. You will receive information in your EIN Package about Express Enrollment and an additional mailing containing your EFTPS personal identification number (PIN) and instructions for activating your PIN. Call the toll-free number located in your “How To Activate Your EFTPS Enrollment” brochure to activate your enrollment and begin making your employment tax deposits. If you outsource any of your payroll and related tax duties to a third-party payer, such as a payroll service provider or reporting agent, be sure to tell them about your EFTPS enrollment.

 

 

 

Social security number (SSN).

An employee’s SSN consists of nine digits arranged as follows: 000-00-0000. You must obtain each employee’s name and SSN as shown on the employee’s social security card because you must enter them on Form W-2. Don’t accept a social security card that says “Not valid for employment.” A social security number issued with this legend doesn’t permit employment. You may, but aren’t required to, photocopy the social security card if the employee provides it. If you don’t show the employee’s correct name and SSN on Form W-2, you may owe a penalty unless you have reasonable cause. See Pub. 1586, Reasonable Cause Regulations & Requirements for Missing and Incorrect Name/TINs, for information on the requirement to solicit the employee’s SSN.

 

 

 

Applying for a social security card.

Any employee who is legally eligible to work in the United States and doesn’t have a social security card can get one by completing Form SS-5 and submitting the necessary documentation to the SSA. You can get Form SS-5 at socialsecurity.gov/online/ss-5.html, SSA offices, or by calling 1-800-772-1213 or 1-800-325-0778 (TTY). The employee must complete and sign Form SS-5; it can’t be filed by the employer. You may be asked to supply a letter to accompany Form SS-5 if the employee has exceeded his or her yearly or lifetime limit for the number of replacement cards allowed.

 

 

 

Applying for an SSN.

If you file Form W-2 on paper and your employee has applied for an SSN but doesn’t have one when you must file Form W-2, enter “Applied For” on the form. If you’re filing electronically, enter all zeros (000-00-0000 if creating forms online or 000000000 if uploading a file) in the SSN field. When the employee receives the SSN, file Copy A of Form W-2c, Corrected Wage and Tax Statement, with the SSA to show the employee’s SSN. Furnish Copies B, C, and 2 of Form W-2c to the employee. Up to 25 Forms W-2c per Form W-3c, Transmittal of Corrected Wage and Tax Statements, may be filed per session over the Internet, with no limit on the number of sessions. For more information, visit the SSA’s Employer W-2 Filing Instructions & Information webpage at socialsecurity.gov/employer. Advise your employee to correct the SSN on his or her original Form W-2.

 

 

 

Correctly record the employee’s name and SSN.

Record the name and SSN of each employee as they are shown on the employee’s social security card. If the employee’s name isn’t correct as shown on the card (for example, because of marriage or divorce), the employee should request an updated card from the SSA. Continue to report the employee’s wages under the old name until the employee shows you an updated social security card with the new name.

If the SSA issues the employee an updated card after a name change, or a new card with a different SSN after a change in alien work status, file a Form W-2c to correct the name/SSN reported on the most recently filed Form W-2. It isn’t necessary to correct other years if the previous name and SSN were used for years before the most recent Form W-2.

 

 

 

IRS individual taxpayer identification numbers (ITINs) for aliens.

Don’t accept an ITIN in place of an SSN for employee identification or for work. An ITIN is issued for use by resident and nonresident aliens who need identification for tax purposes, but who aren’t eligible for U.S. employment. You can identify an ITIN because it’s a nine-digit number, formatted like an SSN, that starts with the number “9” and has a range of numbers from “50–65,” “70–88,” “90–92,” and “94–99” for the fourth and fifth digits (for example, 9NN-7N-NNNN).

 

An individual with an ITIN who later becomes eligible to work in the United States must obtain an SSN. If the individual is currently eligible to work in the United States, instruct the individual to apply for an SSN and follow the instructions under Applying for an SSN, earlier in this section. Don’t use an ITIN in place of an SSN on Form W-2.

 

 

 

Verification of SSNs.

Employers and authorized reporting agents can use the Social Security Number Verification Service (SSNVS) to instantly verify up to 10 employee names and SSNs (per screen) at a time, or submit an electronic file of up to 250,000 names and SSNs and usually receive results the next business day. Visitsocialsecurity.gov/employer/ssnv.htm for more information.

 

 

 

Registering for SSNVS.

You must register online and receive authorization from your employer to use SSNVS. To register, visit the SSA’s website at socialsecurity.gov/bso and click on the Register link under Business Services Online. Follow the registration instructions to obtain a user identification (ID) and password. You will need to provide the following information about yourself and your company.

• Name.
• SSN.
• Date of birth.
• Type of employer.
• EIN.
• Company name, address, and telephone number.
• Email address.

When you have completed the online registration process, the SSA will mail a one-time activation code to your employer. You must enter the activation code online to use SSNVS.

 

 

 

2. Who Are Employees?

Generally, employees are defined either under common law or under statutes for certain situations. See Pub. 15-A for details on statutory employees and nonemployees.

Employee status under common law.

Generally, a worker who performs services for you is 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. See Pub. 15-A for more information on how to determine whether an individual providing services is an independent contractor or an employee.

 

 

 

If an employer-employee relationship exists, it doesn’t matter what it is called. The employee may be called an agent or independent contractor. It also doesn’t matter how payments are measured or paid, what they are called, or if the employee works full or part time.

You’re responsible for withholding and paying employment taxes for your employees. You’re also required to file employment tax returns. These requirements don’t apply to amounts that you pay to independent contractors. The rules discussed in this publication apply only to workers who are your employees.

In general, you’re an employer of farmworkers if your employees:

• Raise or harvest agricultural or horticultural products on your farm (including the raising and feeding of livestock);
• Work in connection with the operation, management, conservation, improvement, or maintenance of your farm and its tools and equipment, if the major part of such service is performed on a farm;
• Provide services relating to salvaging timber, or clearing land of brush and other debris, left by a hurricane (also known as hurricane labor), if the major part of such service is performed on a farm;
• Handle, process, or package any agricultural or horticultural commodity in its unmanufactured state, if you produced over half of the commodity (for a group of up to 20 unincorporated operators, all of the commodity); or
• Do work for you related to cotton ginning, turpentine, gum resin products, or the operation and maintenance of irrigation facilities.

For this purpose, the term “farm” includes stock, dairy, poultry, fruit, fur-bearing animals, and truck farms, as well as plantations, ranches, nurseries, ranges, greenhouses or other similar structures used primarily for the raising of agricultural or horticultural commodities, and orchards.

Farmwork doesn’t include reselling activities that don’t involve any substantial activity of raising agricultural or horticultural commodities, such as a retail store or a greenhouse used primarily for display or storage. It also doesn’t include processing services which change a commodity from its raw or natural state, or services performed after a commodity has been changed from its raw or natural state.

The table in section 12, How Do Employment Taxes Apply to Farmwork, distinguishes between farm and nonfarm activities, and also addresses rules that apply in special situations.

Crew Leaders

If you’re a crew leader, you’re an employer of farmworkers. A crew leader is a person who furnishes and pays (either on his or her own behalf or on behalf of the farm operator) workers to do farmwork for the farm operator. If there is no written agreement between you and the farm operator stating that you’re his or her employee and if you pay the workers (either for yourself or for the farm operator), then you’re a crew leader. For FUTA tax rules, see section 10.

Business Owned and Operated by Spouses

If you and your spouse jointly own and operate a farm or nonfarm business and share in the profits and losses, you may be partners in a partnership, whether or not you have a formal partnership agreement. See Pub. 541 for more details. The partnership is considered the employer of any employees, and is liable for any employment taxes due on wages paid to its employees.

Exception—Qualified joint venture.

For tax years beginning after December 31, 2006, the Small Business and Work Opportunity Tax Act of 2007 (Public Law 110-28) provides that a “qualified joint venture,” whose only members are spouses filing a joint income tax return, can elect not to be treated as a partnership for federal tax purposes. A qualified joint venture conducts a trade or business where:

• The only members of the joint venture are spouses who file a joint income tax return,
• Both spouses materially participate (see Material participation in the Instructions for Schedule C (Form 1040), line G) in the trade or business (mere joint ownership of property isn’t enough),
• Both spouses elect to not be treated as a partnership, and
• The business is co-owned by both spouses and isn’t held in the name of a state law entity such as a partnership or limited liability company (LLC).

To make the election, all items of income, gain, loss, deduction, and credit must be divided between the spouses, in accordance with each spouse’s interest in the venture, and reported on separate Schedules C or F as sole proprietors. Each spouse must also file a separate Schedule SE to pay self-employment taxes, as applicable.

Spouses using the qualified joint venture rules are treated as sole proprietors for federal tax purposes and generally don’t need an EIN. If employment taxes are owed by the qualified joint venture, either spouse may report and pay the employment taxes due on the wages paid to the employees using the EIN of that spouse’s sole proprietorship. Generally, filing as a qualified joint venture won’t increase the spouses’ total tax owed on the joint income tax return. However, it gives each spouse credit for social security earnings on which retirement benefits are based and for Medicare coverage without filing a partnership return.

Note. If your spouse is your employee, not your partner, you must withhold and pay federal income taxes, and social security and Medicare taxes for him or her. However, the wages are not subject to FUTA tax.

For more information on qualified joint ventures, visit IRS.gov and enter “qualified joint venture” in the search box.

 

 

 

Exception—Community income.

If you and your spouse wholly own an unincorporated business as community property under the community property laws of a state, foreign country, or U.S. possession, you can treat the business either as a sole proprietorship (of the spouse who carried on the business) or a partnership. You may still make an election to be taxed as a qualified joint venture instead of a partnership. See Exception—Qualified joint venture , earlier in this section.

 

 

 

3. Wages and Other Compensation

Cash wages that you pay to employees for farmwork are generally subject to social security tax and Medicare tax. You may also be required to withhold, deposit, and report Additional Medicare Tax. See section 4 for more information. If the wages are subject to social security and Medicare taxes, they are also subject to federal income tax withholding. You may also be liable for FUTA tax, which isn’t withheld by you or paid by the employee. FUTA tax is discussed in section 10. Cash wages include checks, money orders, etc.

For more information on what payments are considered taxable wages, see Pub. 15.

Noncash wages (including commodity wages).

Noncash wages include food, lodging, clothing, transportation passes, farm products, or other goods or commodities. Noncash wages paid to farmworkers, including commodity wages, aren’t subject to social security taxes, Medicare taxes, or federal income tax withholding. However, you and your employee can agree to have federal income tax withheld on noncash wages.

Noncash wages, including commodity wages, are treated as cash wages if the substance of the transaction is a cash payment. Noncash wages treated as cash wages are subject to social security taxes, Medicare taxes, and federal income tax withholding.

Report the value of noncash wages in box 1 of Form W-2 together with cash wages. Noncash wages for farmwork are subject to federal income tax unless a specific exclusion applies. Don’t show noncash wages in box 3 or in box 5 of Form W-2 (unless the substance of the transaction is a cash payment and they are being treated as cash wages).

 

 

 

Other compensation.

Pubs. 15-A and 15-B discuss other forms of compensation that may be taxable.

 

 

 

Family members.

Generally, the wages that you pay to family members who are your employees are subject to social security and Medicare taxes, federal income tax withholding, and FUTA tax. However, certain exemptions may apply for your child, spouse, or parent. See the table, How Do Employment Taxes Apply to Farmwork, in

section 12.

 

 

 

Household employees.

The wages of an employee who performs household services, such as a maid, babysitter, gardener, or cook, in your home aren’t subject to social security and Medicare taxes if you pay that employee cash wages of less than $2,000 in 2017.

Social security and Medicare taxes don’t apply to cash wages for housework in your private home if it was done by your spouse or your child under age 21. Nor do the taxes apply to housework done by your parent unless:

• You have a child living in your home who is under age 18 or has a physical or mental condition that requires care by an adult for at least 4 continuous weeks in the calendar quarter services were performed; and
• You’re a widow or widower, or divorced and not remarried, or have a spouse in the home who, because of a physical or mental condition, can’t care for your child for at least 4 continuous weeks in the calendar quarter services were performed.

For more information, see Pub. 926.

 

Wages for household work are generally not a deductible farm expense. See Pub. 225.

 

 

 

Share farmers.

You don’t have to withhold or pay social security and Medicare taxes on amounts paid to share farmers under share-farming arrangements.

 

 

 

Compensation paid to H-2A visa holders.

Report compensation of $600 or more paid to foreign agricultural workers who entered the country on H-2A visas in box 1 of Form W-2 but don’t report it as social security wages (box 3) or Medicare wages (box 5) on Form W-2 because compensation paid to H-2A workers for agricultural labor performed in connection with this visa isn’t subject to social security and Medicare taxes. On Form W-2, don’t check box 13 (Statutory employee), as H-2A workers aren’t statutory employees.

An employer isn’t required to withhold federal income tax from compensation paid to an H-2A worker for agricultural labor performed in connection with this visa but may withhold if the worker asks for withholding and the employer agrees. In that case, the worker must give the employer a completed Form W-4. Federal income tax withheld should be reported in box 2 of Form W-2.

These reporting rules apply when the H-2A worker provides his or her TIN to the employer. If the H-2A worker doesn’t provide a TIN and the total annual wages to the H-2A worker are at least $600, the employer is required to backup withhold. See the Instructions for Form 1099-MISC and the Instructions for Form 945.

For more information on foreign agricultural workers on H-2A visas, go to IRS.gov and enter “foreign agricultural workers” in the search box.

 

 

 

4. Social Security and Medicare Taxes

Generally, you must withhold social security and Medicare taxes on all cash wage payments that you make to your employees. You may also be required to withhold Additional Medicare Tax. For more information, see Additional Medicare Tax withholding , later.

The $150 Test or the $2,500 Test

All cash wages that you pay to an employee during the year for farmwork are subject to social security and Medicare taxes and federal income tax withholding if either of the two tests below is met.

• You pay cash wages to an employee of $150 or more in a year for farmwork (count all cash wages paid on a time, piecework, or other basis). The $150 test applies separately to each farmworker that you employ. If you employ a family of workers, each member is treated separately. Don’t count wages paid by other employers.
• The total that you pay for farmwork (cash and noncash) to all your employees is $2,500 or more during the year.

Exceptions.

Annual cash wages of less than $150 you pay to a seasonal farmworker aren’t subject to social security and Medicare taxes, or federal income tax withholding, even if you pay $2,500 or more to all your farmworkers. However, these wages count toward the $2,500 test for determining whether other farmworkers’ wages are subject to social security and Medicare taxes.

A seasonal farmworker is a worker who:

• Is employed in agriculture as a hand-harvest laborer,
• Is paid piece rates in an operation that is usually paid on a piece-rate basis in the region of employment,
• Commutes daily from his or her permanent home to the farm, and
• Had been employed in agriculture less than 13 weeks in the preceding calendar year.

 

 

 

Social Security and Medicare Tax Withholding

The social security tax rate is 6.2%, for both the employee and employer, on the first $127,200 paid to each employee. You must withhold at this rate from each employee and pay a matching amount. The Medicare tax rate is 1.45% each for the employee and employer on all wages. You must withhold at this rate from each employee and pay a matching amount. There is no wage base limit for Medicare tax; all covered wages are subject to Medicare tax.

Social security and Medicare taxes apply to most payments of sick pay, including payments made by third parties such as insurance companies. For details, see Pub. 15-A.

Additional Medicare Tax withholding.

In addition to withholding Medicare tax at 1.45%, you must withhold a 0.9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. You’re required to begin withholding Additional Medicare Tax in the pay period in which you pay wages in excess of $200,000 to an employee and continue to withhold it each pay period until the end of the calendar year. Additional Medicare Tax is only imposed on the employee. There is no employer share of Additional Medicare Tax. All wages that are subject to Medicare tax are subject to Additional Medicare Tax withholding if paid in excess of the $200,000 withholding threshold.

For more information on what wages are subject to Medicare tax, see the chart, Special Rules for Various Types of Services and Payments, in section 15 of Pub. 15. For more information on Additional Medicare Tax, visit IRS.gov and enter “Additional Medicare Tax” in the search box.

 

 

 

Employee share paid by employer.

If you would rather pay a household or agricultural employee’s share of the social security and Medicare taxes without withholding them from his or her wages, you may do so. If you don’t withhold the taxes, however, you must still pay them. Any employee social security and Medicare taxes that you pay is additional income to the employee. Include it in box 1 of the employee’s Form W-2, but don’t count it as social security and Medicare wages and don’t include it in boxes 3 and 5. Also, don’t count the additional income as wages for FUTA tax purposes. Different rules apply to employer payments of social security and Medicare taxes for non-household and non-agricultural employees. See section 7 of Pub. 15-A.

 

 

 

Withholding social security and Medicare taxes on nonresident alien employees.

In general, if you pay wages to nonresident alien employees, you must withhold social security and Medicare taxes as you would for a U.S. citizen or resident alien. However, see Pub. 515 for exceptions to this general rule. One such exception is for foreign agricultural workers on H-2A visas, who are exempt from social security and Medicare taxes. SeeCompensation paid to H-2A visa holders in section 3.

 

 

 

Religious exemption.

An exemption from social security and Medicare taxes is available to members of a recognized religious sect opposed to public insurance. This exemption is available only if both the employee and the employer are members of the sect. For more information, see Pub. 517.

 

 

 

5. Federal Income Tax Withholding

Farmers and crew leaders must withhold federal income tax from the wages of farmworkers if the wages are subject to social security and Medicare taxes. The amount to withhold is figured on gross wages before taking out social security and Medicare taxes, union dues, etc. You may use one of several methods to determine the amount of federal income tax withholding. They are discussed in section 13.

Form W-4.

To know how much federal income tax to withhold from employees’ wages, you should have a Form W-4 on file for each employee. Encourage your employees to file an updated Form W-4 for 2017, especially if they owed taxes or received a large refund when filing their 2016 tax return. Advise your employees to use the IRS Withholding Calculator on the IRS website at IRS.gov/w4app for help in determining how many withholding allowances to claim on their Form W-4.

Ask each new employee to give you a signed Form W-4 when starting work. Make the form effective with the first wage payment. If a new employee doesn’t give you a completed Form W-4, withhold tax as if he or she is single, with no withholding allowances.

 

 

 

Forms in Spanish.

You can provide Formulario W-4(SP) in place of Form W-4 to your Spanish-speaking employees. For more information, see Pub. 17(SP). The rules discussed in this section that apply to Form W-4 also apply to Formulario W-4(SP).

 

 

 

Effective date of Form W-4.

A Form W-4 remains in effect until the employee gives you a new one. When you receive a new Form W-4, don’t adjust withholding for pay periods before the effective date of the new form. If an employee gives you a replacement Form W-4, begin withholding no later than the start of the first payroll period ending on or after the 30th day from the date when you received the replacement Form W-4. For exceptions, seeExemption from federal income tax withholding , IRS review of requested Forms W-4 , and Invalid Forms W-4 , later in this section.

 

 

 

 

A Form W-4 that makes a change for the next calendar year won’t take effect in the current calendar year.

Completing Form W-4.

The amount of federal income tax withholding is based on marital status and withholding allowances. Your employees may not base their withholding amounts on a fixed dollar amount or percentage. However, the employee may specify a dollar amount to be withheld in addition to the amount of withholding based on filing status and withholding allowances claimed on Form W-4.

Employees may claim fewer withholding allowances than they are entitled to claim. They may do this to ensure that they have enough withholding or to offset other sources of taxable income that aren’t subject to withholding.

See Pub. 505 for more information about completing Form W-4. Along with Form W-4, you may wish to order Pub. 505 for use by your employees.

Don’t accept any withholding or estimated tax payments from your employees in addition to withholding based on their Form W-4. If an employee wants additional withholding, he or she should submit a new Form W-4 and, if necessary, pay estimated tax by filing Form 1040-ES or by using EFTPS to make estimated tax payments.

 

 

 

Exemption from federal income tax withholding.

Generally, an employee may claim exemption from federal income tax withholding because he or she had no federal income tax liability last year and expects none this year. See the Form W-4 instructions for more information. However, the wages are still subject to social security and Medicare taxes.

A Form W-4 claiming exemption from withholding is effective when it is filed with the employer and only for that calendar year. To continue to be exempt from withholding in the next calendar year, an employee must give you a new Form W-4 by February 15. If the employee doesn’t give you a new Form W-4 by February 15, withhold tax based on the last valid Form W-4 you have for the employee that didn’t claim an exemption from withholding or, if one doesn’t exist, withhold as if he or she is single with zero withholding allowances. If the employee provides a new Form W-4 claiming an exemption from withholding on February 16 or later, you may apply the exemption to future wages, but don’t refund taxes withheld while the exempt status wasn’t in place.

 

 

 

Withholding income taxes on the wages of nonresident alien employees.

In general, you must withhold federal income taxes on the wages of nonresident alien employees. However, see Pub. 515 for exceptions to this general rule. Also see Compensation paid to H-2A visa workers in section 3.

 

 

 

Withholding adjustment for nonresident alien employees.

A special procedure applies for figuring the amount of income tax to withhold from wages of nonresident alien employees performing services within the United States for wages paid in 2017. This procedure requires a special chart to be used with the withholding tables to determine the amount to withhold from the wages of the nonresident alien employee. See Withholding adjustment for nonresident alien employees in section 9 of Pub. 15.

 

 

 

Nonresident alien employee’s Form W-4.

When completing Forms W-4, nonresident aliens are required to:

• Not claim exemption from income tax withholding;
• Request withholding as if they are single, regardless of their actual marital status;
• Claim only one allowance (if the nonresident alien is a resident of Canada, Mexico, or South Korea, or student or business apprentice from India, he or she may claim more than one allowance); and
• Write “Nonresident Alien” or “NRA” above the dotted line on line 6 of Form W-4.

If you maintain an electronic Form W-4 system, you should provide a field for nonresident alien employees to enter nonresident alien status instead of writing “Nonresident Alien” or “NRA” above the dotted line on line 6.

 

A nonresident alien employee may request additional withholding at his or her option for other purposes, although such additions shouldn’t be necessary for withholding to cover federal income tax liability related to employment.

 

 

 

Form 8233.

If a nonresident alien employee claims a tax treaty exemption from withholding, the employee must submit Form 8233 with respect to the income exempt under the treaty, instead of Form W-4. For more information, see Pay for Personal Services Performed in the Withholding on Specific Income section of Pub. 515 and the Instructions for Form 8233.

 

 

 

IRS review of requested Forms W-4.

When requested by the IRS, you must make original Forms W-4 available for inspection by an IRS employee. You may also be directed to send certain Forms W-4 to the IRS. You may receive a notice from the IRS requiring you to submit a copy of Form W-4 for one or more of your named employees. Send the requested copy or copies of Form W-4 to the IRS at the address provided and in the manner directed by the notice. The IRS may also require you to submit copies of Form W-4 to the IRS as directed by a revenue procedure or notice published in the Internal Revenue Bulletin. When we refer to Form W-4, the same rules apply to Formulario W-4(SP), its Spanish translation.

After submitting a copy of the requested Form W-4 to the IRS, continue to withhold federal income tax based on that Form W-4 if it is valid (see Invalid Forms W-4 , later in this section). However, if the IRS later notifies you in writing that the employee isn’t entitled to claim exemption from withholding or a claimed number of withholding allowances, withhold federal income tax based on the effective date, marital status, and maximum number of withholding allowances specified in the notice (commonly referred to as a “lock-in letter”).

 

 

 

Initial lock-in letter.

The IRS uses information reported on Form W-2 to identify employees with withholding compliance problems. In some cases, where a serious underwithholding problem is found to exist for a particular employee, the IRS may issue a lock-in letter to the employer specifying the maximum number of withholding allowances and marital status permitted for a specific employee. You will also receive a copy for the employee that identifies the maximum number of withholding allowances and marital status permitted, and the process by which the employee can provide additional information to the IRS for purposes of determining the appropriate number of withholding allowances and/or modifying the specified marital status. If the employee is employed by you as of the date of the notice, you must furnish the employee copy to the employee within 10 business days of receipt. You may follow any reasonable business practice to furnish the employee copy to the employee.

 

 

 

Implementation of lock-in letter.

When you receive the notice specifying the maximum number of withholding allowances and marital status permitted, you may not withhold immediately on the basis of the notice. You must begin withholding tax on the basis of the notice for any wages paid after the date specified in the notice. The delay between your receipt of the notice and the date to begin the withholding on the basis of the notice permits the employee to contact the IRS.

 

 

 

Seasonal employees and employees not currently performing services.

If you receive a notice for an employee who isn’t currently performing services for you, you’re still required to furnish the employee copy to the employee and withhold based on the notice if any of the following apply.

• You’re paying wages for the employee’s prior services and the wages are subject to income tax withholding on or after the date specified in the notice.
• You reasonably expect the employee to resume services within 12 months of the date of the notice.
• The employee is on a leave of absence that doesn’t exceed 12 months or the employee has a right to reemployment after the leave of absence.

 

 

 

Termination and re-hire of employees.

If you’re required to furnish and withhold based on the notice and the employment relationship is terminated after the date of the notice, you must continue to withhold based on the notice if you continue to pay any wages subject to income tax withholding. You must also withhold based on the notice or modification notice (explained next) if the employee resumes the employment relationship with you within 12 months after the termination of the employment relationship.

 

 

 

Modification notice.

After issuing the notice specifying the maximum number of withholding allowances and marital status permitted, the IRS may issue a subsequent notice (modification notice) that modifies the original notice. The modification notice may change the marital status and/or the number of withholding allowances permitted. You must withhold federal income tax based on the effective date specified in the modification notice.

 

 

 

New Form W-4 after IRS notice.

After the IRS issues a notice or modification notice, if the employee provides you with a new Form W-4 claiming complete exemption from withholding or claims a marital status, a number of withholding allowances, and any additional withholding that results in less withholding than would result under the IRS notice or modification notice, you must disregard the new Form W-4. You’re required to withhold on the basis of the notice or modification notice unless the IRS subsequently notifies you to withhold based on the new Form W-4. If the employee wants to put a new Form W-4 into effect that results in less withholding than required, the employee must contact the IRS.

If, after you receive an IRS notice or modification notice, your employee provides you with a new Form W-4 that doesn’t claim exemption from federal income tax withholding and claims a marital status, a number of withholding allowances, and any additional withholding that results in more withholding than would result under the notice or modification notice, you must withhold tax on the basis of that new Form W-4. Otherwise, disregard any subsequent Forms W-4 provided by the employee and withhold based on the IRS notice or modification notice.

 

 

 

Substitute Forms W-4.

You’re encouraged to have your employees use the official version of Form W-4 to claim withholding allowances or exemption from withholding.

You may use a substitute version of Form W-4 to meet your business needs. However, your substitute Form W-4 must contain language that is identical to the official Form W-4 and your form must meet all current IRS rules for substitute forms. At the time that you provide your substitute form to the employee, you must provide him or her with all tables, instructions, and worksheets from the current Form W-4.

You can’t accept a substitute Form W-4 developed by an employee, and the employee submitting such form will be treated as failing to furnish a Form W-4. However, continue to use any valid Forms W-4 developed by your employees that you accepted before October 11, 2007.

 

 

 

Invalid Forms W-4.

Any unauthorized change or addition to Form W-4 makes it invalid. This includes taking out any language by which the employee certifies that the form is correct. A Form W-4 is also invalid if, by the date an employee gives it to you, he or she indicates in any way that it is false. An employee who submits a false Form W-4 may be subject to a $500 penalty. You may treat a Form W-4 as invalid if the employee wrote “exempt” on line 7 and also entered a number on line 5 or an amount on line 6.

When you get an invalid Form W-4, don’t use it to figure federal income tax withholding. Tell the employee that it is invalid and ask for another one. If the employee doesn’t give you a valid one, withhold tax as if the employee is single with zero withholding allowances. However, if you have an earlier Form W-4 for this worker that is valid, withhold as you did before.

For additional information about these rules, see Treasury Decision 9337, 2007-35 I.R.B. 455, available at

IRS.gov/irb/2007-35_IRB/ar10.html.

 

 

 

Amounts exempt from levy on wages, salary, and other income.

If you receive a Notice of Levy on Wages, Salary, and Other Income—Forms 668-W(ACS), 668-W(c)(DO), or 668-W(ICS), you must withhold amounts as described in the instructions for these forms. Pub. 1494 has tables to figure the amount exempt from levy. If a levy issued in a prior year is still in effect and the taxpayer submits a new Statement of Exemptions and Filing Status, use the current year Pub. 1494 to figure the exempt amount.

 

 

 

How To Figure Federal Income Tax Withholding

There are several ways to figure federal income tax withholding.

• Wage bracket tables. See section 13 for directions on how to use the tables.
• Percentage method. See section 13 for directions on how to use the percentage method.
• Alternative formula tables for percentage method withholding. See Pub. 15-A.
• Wage bracket percentage method withholding tables. See Pub. 15-A.
• Other alternative methods. See Pub. 15-A.

Employers with automated payroll systems will find the two alternative formula tables and the two alternative wage bracket percentage method tables in Pub. 15-A useful.

If an employee wants additional federal tax withheld, have the employee show the extra amount on Form W-4.

Supplemental wages.

Supplemental wages are wage payments to an employee that aren’t regular wages. They include, but aren’t limited to, bonuses, commissions, overtime pay, accumulated sick leave, severance pay, awards, prizes, back pay and retroactive pay increases for current employees, and payments for nondeductible moving expenses. Other payments subject to the supplemental wage rules include taxable fringe benefits and expense allowances paid under a nonaccountable plan.

If you pay supplemental wages with regular wages but don’t specify the amount of each, withhold federal income tax as if the total was a single payment for a regular payroll period.

If you pay supplemental wages separately (or combine them in a single payment and specify the amount of each), the federal income tax withholding method depends partly on whether you withhold federal income tax from your employee’s regular wages.

1. If you withheld federal income tax from an employee’s regular wages in the current or immediately preceding calendar year, you can use one of the following methods for the supplemental wages.
2. Withhold a flat 25% (no other percentage allowed).
3. If the supplemental wages are paid concurrently with regular wages, add the supplemental wages to the concurrently paid regular wages. If there are no concurrently paid regular wages, add the supplemental wages to, alternatively, either the regular wages paid or to be paid for the current payroll period or the regular wages paid for the preceding payroll period. Figure the income tax withholding as if the total of the regular wages and supplemental wages is a single payment. Subtract the tax withheld from the regular wages. Withhold the remaining tax from the supplemental wages. If there were other payments of supplemental wages paid during the payroll period made before the current payment of supplemental wages, aggregate all the payments of supplemental wages paid during the payroll period with the regular wages paid during the payroll period, calculate the tax on the total, subtract the tax already withheld from the regular wages and previous supplemental wage payments, and withhold the remaining tax from the current payment of supplemental wages.
4. If you didn’t withhold federal income tax from the employee’s regular wages in the current or immediately preceding calendar year, use method 1-b above. This would occur, for example, when the value of the employee’s withholding allowances claimed on Form W-4 is more than the wages.

 

Separate rules apply to any supplemental wages exceeding $1 million that you pay to an individual during the year. See section 7 in Pub. 15 for details.

Regardless of the method that you use to withhold federal income tax on supplemental wages, they are generally subject to social security, Medicare, and FUTA taxes.

 

 

 

6. Required Notice to Employees About Earned Income Credit (EIC)

You must notify employees who have no federal income tax withheld that they may be able to claim a tax refund because of the EIC. Although you don’t have to notify employees who claim exemption from withholding on Form W-4 about the EIC, you’re encouraged to notify any employees whose wages for 2016 were less than $47,955 ($53,505 if married filing jointly) that they may be eligible to claim the credit for 2016. This is because eligible employees may get a refund of the amount of EIC that is more than the tax that they owe.

You will meet the notification requirement if you issue to the employee Form W-2 with the EIC notice on the back of Copy B, or a substitute Form W-2 with the same statement. You may also meet the requirement by providing Notice 797, Possible Federal Tax Refund Due to the Earned Income Credit (EIC), or your own statement that contains the same wording.

If a substitute Form W-2 is given to the employee on time but doesn’t have the required statement, you must notify the employee within 1 week of the date that the substitute Form W-2 is given. If Form W-2 is required but isn’t given on time, you must give the employee Notice 797 or your written statement by the date that Form W-2 is required to be given. If Form W-2 isn’t required, you must notify the employee by February 7, 2017.

7. Depositing Taxes

Generally, you must deposit both the employer and employee shares of social security and Medicare taxes and federal income tax withheld. You must use EFT to make all federal tax deposits. See How To Deposit , later in this section.

 

The credit against employment taxes for COBRA premium assistance payments is treated as a deposit of taxes on the first day of your return period. For more information, see COBRA premium assistance credit under Introduction.

Payment with return.

You may make payments with Forms 943 or 945 instead of depositing if one of the following applies.

• You report less than a $2,500 tax liability for the year (Form 943, line 11; Form 945, line 3) and you pay in full with a return that is filed on time. However, if you’re unsure that you will report less than $2,500, deposit under the rules explained in this section so that you won’t be subject to a failure-to-deposit (FTD) penalty.
• You’re a monthly schedule depositor and make a payment in accordance with the Accuracy of Deposits Rulediscussed later in this section. This payment may be $2,500 or more.

 

 

 

 

Only monthly schedule depositors, defined later, are allowed to make an Accuracy of Deposits Rule payment with the return. Semiweekly schedule depositors must timely deposit the amount by the shortfall makeup date. See Accuracy of Deposits Rule and How To Deposit, later in this section.

When To Deposit

 

If you employ both farm and nonfarm workers, don’t combine the taxes reportable on Forms 941 or 944 with Form 943 to decide whether to make a deposit. See Employers of Both Farm and Nonfarm Workers, later in this section.

The rules for determining when to deposit Form 943 taxes are discussed below. See section 10 for the separate rules that apply to FUTA tax. Under these rules, you’re classified as either a monthly schedule depositor or a semiweekly schedule depositor.

The terms “monthly schedule depositor” and “semiweekly schedule depositor” don’t refer to how often your business pays its employees or how often you’re required to make deposits. The terms identify which set of rules you must follow when you incur a tax liability (for example, when you have a payday).

The deposit schedule that you must use for a calendar year is determined from the tax liability reported on your Form 943, line 11, for the lookback period, discussed next.

• If you reported $50,000 or less of Form 943 taxes for the lookback period, you’re a monthly schedule depositor.
• If you reported more than $50,000 of Form 943 taxes for the lookback period, you’re a semiweekly schedule depositor.

Lookback period.

The lookback period is the second calendar year preceding the current calendar year. For example, the lookback period for 2017 is 2015.

Example of deposit schedule based on lookback period.

Rose Co. reported taxes on Form 943 as follows.

2015 — $48,000

2016 — $60,000

Rose Co. is a monthly schedule depositor for 2017 because its taxes for the lookback period ($48,000 for calendar year 2015) weren’t more than $50,000. However, for 2018, Rose Co. is a semiweekly schedule depositor because the total taxes before adjustment for its lookback period ($60,000 for calendar year 2016) exceeded $50,000.

 

 

 

Adjustments to lookback period taxes.

To determine your taxes for the lookback period, use only the tax that you reported on the original return (Form 943, line 11). Don’t include adjustments shown on Form 943-X.

Example of adjustments.

An employer originally reported total tax of $45,000 for the lookback period in 2015. The employer discovered during March 2017 that the tax reported for the lookback period was understated by $10,000 and corrected this error by filing Form 943-X. The total tax reported in the lookback period is still $45,000. The $10,000 adjustment is also not treated as part of the 2017 taxes.

 

 

 

Deposit period.

The term “deposit period” refers to the period during which tax liabilities are accumulated for each required deposit due date. For monthly schedule depositors, the deposit period is a calendar month. The deposit periods for semiweekly schedule depositors are Wednesday through Friday and Saturday through Tuesday.

 

 

 

Monthly Deposit Schedule

If the tax liability reported on Form 943, line 11, for the lookback period is $50,000 or less, you’re a monthly schedule depositor for the current year. You must deposit Form 943 taxes on payments made during a calendar month by the 15th day of the following month.

Monthly schedule example.

Red Co. is a seasonal employer and a monthly schedule depositor. It pays wages each Friday. It paid wages during July 2017, but didn’t pay any wages during August. Red Co. must deposit the combined tax liabilities for the July paydays by August 15. Red Co. doesn’t have a deposit requirement for August (that is, due by September 15, 2017) because no wages were paid in August; therefore, it didn’t have a tax liability for August.

 

 

 

New employers.

For agricultural employers, your tax liability for any year in the lookback period before the date you started or acquired your business is considered to be zero. Therefore, you’re a monthly schedule depositor for the first and second calendar years of your agricultural business (but see the $100,000 Next-Day Deposit Rule , later in this section).

 

 

 

Semiweekly Deposit Schedule

You’re a semiweekly schedule depositor for a calendar year if the tax liability on Form 943, line 11, during your lookback period was more than $50,000. Under the semiweekly deposit schedule, deposit Form 943 taxes for payments made on Wednesday, Thursday, and/or Friday by the following Wednesday. Deposit amounts accumulated for payments made on Saturday, Sunday, Monday, and/or Tuesday by the following Friday.

Semiweekly depositors aren’t required to deposit twice a week if their payments were in the same semiweekly period unless the $100,000 Next-Day Deposit Rule (discussed later in this section) applies. For example, if you made a payment on both Wednesday and Friday and incurred taxes of $10,000 for each pay date, deposit the $20,000 by the following Wednesday. If you made no additional payments on Saturday through Tuesday, no deposit is due on Friday.

 

Semiweekly schedule depositors must complete Form 943-A, Agricultural Employer’s Record of Federal Tax Liability, and submit it with Form 943.

Semiweekly Deposit Schedule

IF the payday falls on a…    THEN deposit taxes by

the following…

Wednesday, Thursday, and/or Friday      Wednesday

Saturday, Sunday, Monday, and/or Tuesday      Friday

 

Semiweekly schedule example.

Green, Inc., is a semiweekly schedule depositor and pays wages once each month on the last Friday of the month. Green, Inc., will deposit only once a month, but the deposit will be made under the semiweekly deposit schedule as follows. Green, Inc.’s tax liability for the April 28, 2017 (Friday), wage payment must be deposited by May 3, 2017 (Wednesday).

 

 

 

Semiweekly deposit period spanning two return periods.

If you have more than one pay date during a semiweekly period and the pay dates fall in different return periods, you will need to make separate deposits for the separate liabilities. For example, if you have a pay date on Saturday, December 30, 2017, and another pay date on Tuesday, January 2, 2018, two separate deposits will be required even though the pay dates fall within the same semiweekly period. Both deposits will be due Friday, January 5, 2018 (3 business days from the end of the semiweekly deposit period).

 

 

 

Deposits Due on Business Days Only

If a deposit is required to be made on a day that isn’t a business day, the deposit is considered timely if it is made by the close of the next business day. A business day is any day other than a Saturday, Sunday, or legal holiday. For example, if a deposit is required to be made on Friday and Friday is a legal holiday, the deposit is considered timely if it is made by the following Monday (if Monday is a business day).

Semiweekly schedule depositors

will always have 3 business days following the close of the semiweekly period to make a deposit. That is, if any of the 3 weekdays after the end of a semiweekly period is a legal holiday, you will have an additional day for each day that is a legal holiday to make the deposit. For example, if a semiweekly schedule depositor accumulated taxes on Friday and the following Monday is a legal holiday, the deposit normally due on Wednesday may be made on Thursday (this allows 3 business days to make the deposit).

 

 

 

Legal holiday.

The term “legal holiday” means any legal holiday in the District of Columbia. For purposes of the deposit rules, the term “legal holiday” doesn’t include other statewide legal holidays. Legal holidays for 2017 are listed below.

• January 2—New Year’s Day (observed)
• January 16—Birthday of Martin Luther King, Jr.
• January 20—Inauguration Day
• February 20—Washington’s Birthday
• April 17—District of Columbia Emancipation Day (observed)
• May 29—Memorial Day
• July 4—Independence Day
• September 4—Labor Day
• October 9—Columbus Day
• November 10—Veterans Day (observed)
• November 23—Thanksgiving Day
• December 25—Christmas Day

 

 

 

$100,000 Next-Day Deposit Rule

If you accumulate $100,000 or more of Form 943 taxes (that is, taxes reported on Form 943, line 11) on any day during a deposit period, you must deposit the tax by the close of the next business day, whether you’re a monthly or a semiweekly schedule depositor.

For purposes of the $100,000 rule, don’t continue accumulating a tax liability after the end of a deposit period. For example, if a semiweekly schedule depositor has accumulated a liability of $95,000 on a Tuesday (of a Saturday-through-Tuesday deposit period) and accumulated a $10,000 liability on Wednesday, the $100,000 next-day deposit rule doesn’t apply because the $10,000 is accumulated in the next deposit period. Thus, $95,000 must be deposited by Friday and $10,000 must be deposited by the following Wednesday.

However, once you accumulate at least $100,000 in a deposit period, stop accumulating at the end of that day and begin to accumulate anew on the next day. For example, Fir Co. is a semiweekly schedule depositor. On Monday, Fir Co. accumulates taxes of $110,000 and must deposit this amount on Tuesday, the next business day. On Tuesday, Fir Co. accumulates additional taxes of $30,000. Because the $30,000 isn’t added to the previous $110,000 and is less than $100,000, Fir Co. doesn’t have to deposit the $30,000 until Friday (following the semiweekly deposit schedule).

 

If you’re a monthly schedule depositor and you accumulate a $100,000 tax liability on any day of a calendar month, you become a semiweekly schedule depositor on the next day and remain so for at least the rest of the calendar year and for the following calendar year.

Example of the $100,000 next-day deposit rule.

Elm, Inc., started its business on May 7, 2017. Because Elm, Inc., is a new employer, the taxes for its lookback period are considered to be zero; therefore, Elm, Inc., is a monthly schedule depositor. On May 10 (Wednesday), Elm, Inc., paid wages for the first time and accumulated taxes of $50,000. On May 12 (Friday), Elm, Inc., paid wages and accumulated taxes of $60,000, for a total of $110,000. Because Elm, Inc., accumulated $110,000 on May 12, it must deposit $110,000 by May 15 (Monday), the next business day. Elm, Inc., became a semiweekly schedule depositor on May 13. It will be a semiweekly schedule depositor for the remainder of 2017 and for 2018.

 

 

 

Accuracy of Deposits Rule

You’re required to deposit 100% of your tax liability on or before the deposit due date. However, penalties won’t be applied for depositing less than 100% if both of the following conditions are met.

1. Any deposit shortfall doesn’t exceed the greater of $100 or 2% of the amount of taxes otherwise required to be deposited.
2. The deposit shortfall is paid or deposited by the shortfall makeup date as described below.

Makeup Date for Deposit Shortfall:

• Monthly Schedule Depositor—Deposit the shortfall or pay it with your return by the due date of your Form 943. You may pay the shortfall with your Form 943 even if the amount is $2,500 or more.
• Semiweekly Schedule Depositor—Deposit by the earlier of (a) the first Wednesday or Friday (whichever comes first) that falls on or after the 15th of the month following the month in which the shortfall occurred, or (b) the due date for Form 943. For example, if a semiweekly schedule depositor has a deposit shortfall during June 2017, the shortfall makeup date is July 19, 2017 (Wednesday).

 

 

 

How To Deposit

You must deposit employment taxes by EFT. See Payment with return , earlier in this section, for exceptions explaining when taxes may be paid with the tax return instead of being deposited.

Electronic deposit requirement.

You must use EFT to make all federal tax deposits (such as deposits of employment tax, excise tax, and corporate income tax). Generally, an EFT is made using EFTPS. If you don’t want to use EFTPS, you can arrange for your tax professional, financial institution, payroll service, or other trusted third party to make electronic deposits on your behalf.

EFTPS is a free service provided by the Department of Treasury. To get more information or to enroll in EFTPS, visit eftps.gov, or call 1-800-555-4477 or 1-800-733-4829 (TDD). Additional information about EFTPS is also available in Pub. 966.

 

 

 

New employers that have a federal tax obligation will be pre-enrolled in EFTPS. Call the toll-free number located in your EIN Package to activate your enrollment and begin making your tax deposit payments. See When you receive your EIN in section 1 for more information.

Deposit record.

For your records, an EFT Trace Number will be provided with each successful payment. The number can be used as a receipt or to trace the payment.

 

 

 

Depositing on time.

For deposits made by EFTPS to be on time, you must submit the deposit by 8 p.m. Eastern time the day before the date a deposit is due. If you use a third party to make a deposit on your behalf, they may have different cutoff times.

 

 

 

Same-day wire payment option.

If you fail to submit a deposit transaction on EFTPS by 8 p.m. Eastern time the day before the date a deposit is due, you can still make your deposit on time by using the Federal Tax Collection Service (FTCS). To use the same-day wire payment method, you will need to make arrangements with your financial institution ahead of time. Please check with your financial institution regarding availability, deadlines, and costs. Your financial institution may charge you a fee for payments made this way. To learn more about the information you will need to provide your financial institution to make a same-day wire payment, visit the IRS website at IRS.gov/payments and click on Same-day wire.

 

 

 

Deposit Penalties

Penalties may apply if you don’t make required deposits on time or if you make deposits for less than the required amount. The penalties don’t apply if any failure to make a proper and timely deposit was due to reasonable cause and not to willful neglect. If you receive a penalty notice, you can provide an explanation of why you believe reasonable cause exists. If you timely filed your employment tax return, the IRS may also waive deposit penalties if you inadvertently failed to deposit and it was the first quarter that you were required to deposit any employment tax, or if you inadvertently failed to deposit the first time after your deposit frequency changed.

For amounts not properly deposited or not deposited on time, the penalty rates are shown next.

Penalty          Charged for…

2%      Deposits made 1 to 5 days late.

5%      Deposits made 6 to 15 days late.

10%    Deposits made 16 or more days late, but before 10 days from the date of the first notice the IRS sent asking for the tax due.

10%    Amounts that should have been deposited, but instead were paid directly to the IRS or paid with your tax return. See Payment with return , earlier in this section, for exceptions.

15%    Amounts still unpaid more than 10 days after the date of the first notice that the IRS sent asking for the tax due or the day on which you received notice and demand for immediate payment, whichever is earlier.

Late deposit penalty amounts are determined using calendar days, starting from the due date of the liability.

Order in which deposits are applied.

Deposits generally are applied to the most recent tax liability within the year. If you receive an FTD penalty notice, you may designate how your deposits are to be applied in order to minimize the amount of the penalty, if you do so within 90 days of the date of the notice. Follow the instructions on the penalty notice that you received. For examples on how the IRS will apply deposits and more information on designating deposits, see Revenue Procedure 2001-58. You can find Revenue Procedure 2001-58 on page 579 of Internal Revenue Bulletin 2001-50 at IRS.gov/pub/irs-irbs/irb01-50.pdf.

Example.

Cedar, Inc., is required to make a deposit of $1,000 on May 15 and $1,500 on June 15. It doesn’t make the deposit on May 15. On June 15, Cedar, Inc., deposits $2,000. Under the deposits rule, which applies deposits to the most recent tax liability, $1,500 of the deposit is applied to the June 15 deposit and the remaining $500 is applied to the May deposit. Accordingly, $500 of the May 15 liability remains undeposited. The penalty on this underdeposit will apply as explained above.

 

 

 

Trust fund recovery penalty.

If federal income, social security, or Medicare taxes that must be withheld (that is, trust fund taxes) aren’t withheld or aren’t deposited or paid to the United States Treasury, the trust fund recovery penalty may apply. The penalty is the full amount of the unpaid trust fund tax. This penalty may apply to you if these unpaid taxes can’t be immediately collected from the employer or business.

The trust fund recovery penalty may be imposed on all persons who are determined by the IRS to be responsible for collecting, accounting for, or paying over these taxes, and who acted willfully in not doing so.

A responsible person can be an officer or employee of a corporation, a partner or employee of a partnership, an accountant, a volunteer director/trustee, or an employee of a sole proprietorship. A responsible person also may include one who signs checks for the business or otherwise has authority to cause the spending of business funds.

Willfully means voluntarily, consciously, and intentionally. A responsible person acts willfully if the person knows that the required actions of collecting, accounting for, or paying over trust fund taxes aren’t taking place, or recklessly disregards obvious and known risks to the government’s right to receive trust fund taxes.

 

 

 

“Average” FTD penalty.

The IRS may assess an “averaged” FTD penalty of 2% to 10% if you’re a monthly schedule depositor and didn’t properly complete Form 943, line 17, when your tax liability shown on Form 943, line 11, was $2,500 or more. The IRS may also assess this penalty of 2% to 10% if you’re a semiweekly schedule depositor and your tax liability shown on Form 943, line 11, was $2,500 or more and you did any of the following.

• Completed Form 943, line 17, instead of

Form 943-A.

• Failed to attach a properly completed Form 943-A.
• Completed Form 943-A incorrectly, for example, by entering tax deposits instead of tax liabilities in the numbered spaces.

The IRS figures the penalty by allocating your tax liability on Form 943, line 11, equally throughout the tax period. Your deposits and payments may not be counted as timely because the IRS doesn’t know the actual dates of your tax liabilities.

You can avoid the penalty by reviewing your return before filing it. Follow these steps before filing your Form 943.

• If you’re a monthly schedule depositor, report your tax liabilities (not your deposits) in the monthly entry spaces on Form 943, line 17.
• If you’re a semiweekly schedule depositor, report your tax liabilities (not your deposits) on Form 943-A in the lines that represent the dates you paid your employees.
• Verify that your total liability shown on Form 943, line 17, or Form 943-A, line M, equals your tax liability shown on Form 943, line 11.
• Don’t show negative amounts on Form 943, line 17, or Form 943-A.
• For prior period errors, don’t adjust your tax liabilities reported on Form 943, line 17, or on Form 943-A.

 

 

 

Employers of Both Farm and Nonfarm Workers

If you employ both farm and nonfarm workers, you must treat employment taxes for the farmworkers (Form 943 taxes) separately from employment taxes for the nonfarm workers (Form 941 and 944 taxes). Form 943 taxes and Form 941/944 taxes aren’t combined for purposes of applying any of the deposit schedule rules.

If a deposit is due, deposit the Form 941/944 taxes and the Form 943 taxes by making separate deposits. For example, if you’re a monthly schedule depositor for both Forms 941/944 and 943 taxes and your tax liability at the end of May is $1,500 reportable on Form 941/944 and $1,200 reportable on Form 943, deposit both amounts by June 15. Use one transaction to deposit the $1,500 of Form 941/944 taxes and another transaction to deposit the $1,200 of Form 943 taxes.

8. Form 943

You must file Form 943 for each calendar year beginning with the first year that you pay $2,500 or more for farmwork or you employ a farmworker who meets the $150 test explained in section 4. Don’t report these wages on Form 941 or Form 944.

Household employees.

If you file Form 943 and pay wages to household workers, you may include the wages and taxes of these workers on Form 943. If you choose not to report these wages and taxes on Form 943, report the wages of these workers separately on Schedule H (Form 1040). You must have an EIN to file Schedule H (Form 1040). See section 1 for details. If you report the wages on Form 943, include the taxes when you figure deposit requirements or make deposits. If you include household employee wages and taxes on Schedule H (Form 1040), don’t include the household employee taxes when you figure deposit requirements or make Form 943 deposits. See Pub. 926 for more information about household workers.

If household employee wages and taxes are included on Form 943, you must also include FUTA tax for the employees on Form 940. See section 10 for more information.

 

 

 

Penalties.

For each month or part of a month that a return isn’t filed when required (disregarding any extensions of the filing deadline), there is a failure-to-file (FTF) penalty of 5% of the unpaid tax due with that return. The maximum penalty is 25% of the tax due. Also, for each month or part of a month that the tax is paid late (disregarding any extensions of the payment deadline), there is a failure-to-pay (FTP) penalty of 0.5% per month of the amount of tax. For individual filers only, the FTP penalty is reduced from 0.5% per month to 0.25% per month if an installment agreement is in effect. You must have filed your return on or before the due date of the return to qualify for the reduced penalty. The maximum amount of the FTP penalty is also 25% of the tax due. If both penalties apply in any month, the FTF penalty is reduced by the amount of the FTP penalty. The penalties won’t be charged if you have reasonable cause for failing to file or pay. If you receive a penalty notice, you can provide an explanation of why you believe reasonable cause exists.

Note. In addition to any penalties, interest accrues from the due date of the tax on any unpaid balance.

If federal income, social security, or Medicare taxes that must be withheld aren’t withheld or aren’t paid, you may be personally liable for the trust fund recovery penalty. See Trust fund recovery penalty in section 7.

Generally, use of a third-party payer, such as a payroll service provider or reporting agent, doesn’t relieve an employer of the responsibility to ensure that tax returns are filed and all taxes are paid or deposited correctly and on time. See Outsourcing payroll duties for more information.

 

 

 

9. Reporting Adjustments on Form 943

There are two types of adjustments: current year adjustments and prior year adjustments to correct errors. See the Instructions for Form 943 and the Instructions for Form 943-X for more information on how to report these adjustments.

Current Year Adjustments

In certain cases, amounts reported as social security and Medicare taxes on Form 943, lines 3, 5, and 7, must be adjusted to arrive at your correct tax liability. The most common situation involves differences in cents totals due to rounding. Other situations when current year adjustments may be necessary include third-party sick pay, group-term life insurance for former employees, and the uncollected employee share of social security and Medicare taxes on tips. Current year adjustments are reported on Form 943, line 10. See section 13 of Pub. 15 for more information on these adjustments.

If you withhold an incorrect amount of federal income tax or Additional Medicare Tax from an employee, you may adjust the amount withheld in later pay periods during the same year to compensate for the error.

Prior Year Adjustments

If you discover an error on a previously filed Form 943, make the correction using Form 943-X. File a separate Form 943-X for each prior year you’re correcting. File Form 943-X separately. Don’t attach Form 943-X to your current period Form 943. You must explain your error on Form 943-X, indicate when the error was discovered, and provide the applicable certifications.

When you discover that you underreported tax on a previously filed return, you must file Form 943-X no later than the due date of the return for the period during which you discovered the error. Pay the amount you owe by the time you file. For example, you discover on June 9, 2017, that you underreported $10,000 of social security and Medicare wages on your 2016 Form 943. You owe $1,530 on the 2016 Form 943. To qualify for an interest-free adjustment, you must file Form 943-X by January 31, 2018, and pay $1,530 by the time you file. For more information, see the Instructions for Form 943-X or visit IRS.gov and enter “correcting employment taxes” in the search box.

 

See Revenue Ruling 2009-39, 2009-52 I.R.B. 951, for examples of how the interest-free adjustment and claim for refund rules apply in 10 different situations. You can find Revenue Ruling 2009-39 at IRS.gov/irb/2009-52_IRB/ar14.html.

Form 843.

Don’t use Form 843 to request a refund or abatement of overreported social security or Medicare taxes. Instead, request your refund or abatement of taxes on Form 943-X. However, use Form 843 when requesting a refund or abatement of assessed interest or penalties.

 

 

 

Federal income tax and Additional Medicare Tax withholding adjustments.

You can’t adjust amounts reported as income tax or Additional Medicare Tax withheld in a prior calendar year, even if you withheld the wrong amount, unless it is to correct an administrative error or section 3509 applies. An administrative error occurs if the amount you entered on Form 943 isn’t the amount that you actually withheld. Examples include mathematical or transposition errors. In these cases, you should adjust the return to show the amount actually withheld.

If a prior year error was a nonadministrative error, you may correct only the wages subject to Additional Medicare Tax withholding.

 

 

 

Social security and Medicare tax adjustments.

Correct prior year social security and Medicare tax errors by making an adjustment on Form 943-X.

If you withheld no tax or less than the correct amount, you may correct the mistake by withholding the tax from a later payment to the same employee.

If you withheld employee tax when no tax is due or if you withheld more than the correct amount, you must repay or reimburse the employee.

 

 

 

Collecting underwithheld taxes from employees.

If you withheld no federal income, social security, or Medicare taxes or less than the correct amount from an employee’s wages, you can make it up from future pay to that employee. But you’re the one who owes the underpayment. Reimbursement is a matter for settlement between you and the employee. Underwithheld federal income tax and Additional Medicare Tax must be recovered from the employee on or before the last day of the calendar year.

 

 

 

Refunding amounts incorrectly withheld from employees.

If you withheld more than the correct amount of income, social security, or Medicare taxes from wages paid, repay or reimburse the employee the excess. Any excess income tax or Additional Medicare Tax withholding must be repaid or reimbursed to the employee before the end of the calendar year in which it was withheld. Keep in your records the employee’s written receipt showing the date and amount of the repayment or record of reimbursement. If you didn’t repay or reimburse the employee, you must report and pay each excess amount when you file Form 943 for the year in which you withheld too much tax.

 

 

 

Filing corrections to Forms W-2 and W-3.

When adjustments are made to correct social security and Medicare taxes because of a change in the wage totals reported for a previous year, you also may need to file Forms W-2c and Form W-3c. Forms W-2c may be created and submitted to the SSA over the Internet. For more information, visit the SSA’s Employer W-2 Filing Instructions & Information website at socialsecurity.gov/employer.

 

 

 

For additional information about the procedure for adjusting employment taxes, see the Instructions for Form 943-X or visit IRS.gov and enter “correcting employment taxes” in the search box. Also see Treasury Decision 9405, 2008-32 I.R.B. 293, available at IRS.gov/irb/2008-32_IRB/ar13.html.

Note. Current period adjustments for fractions of cents, sick pay, tips, and group-term life insurance are reported on your Form 943.

10. Federal Unemployment (FUTA) Tax

The Federal Unemployment Tax Act (FUTA), with state unemployment systems, provides for payments of unemployment compensation to workers who have lost their jobs. Most employers pay both a federal and a state unemployment tax. For a list of state unemployment agencies, visit the U.S. Department of Labor’s website at workforcesecurity.doleta.gov/unemploy/agencies.asp. Only the employer pays FUTA tax; it isn’t withheld from the employees’ wages. For more information, see the Instructions for Form 940.

For 2017, you must file Form 940 if you:

• Paid cash wages of $20,000 or more to farmworkers in any calendar quarter in 2016 or 2017, or
• Employed 10 or more farmworkers during at least some part of a day (whether or not at the same time) during any 20 or more different weeks in 2016 or 20 or more different weeks in 2017.

To determine whether you meet either test above, you must count wages paid to aliens admitted on a temporary basis to the United States to perform farmwork, also known as “H-2A” visa workers. However, wages paid to “H-2A” visa workers aren’t subject to the FUTA tax.

Generally, farmworkers supplied by a crew leader are considered employees of the farm operator for purposes of the FUTA tax unless (a) the crew leader is registered under the Migrant and Seasonal Agricultural Worker Protection Act, or (b) substantially all of the workers supplied by the crew leader operate or maintain tractors, harvesting or crop-dusting machines, or other machines provided by the crew leader. Therefore, if (a) or (b) applies, the farmworkers are generally employees of the crew leader.

You must deposit FUTA tax by EFT. The deposit rules for FUTA tax are different from those for income, social security, and Medicare taxes. See Deposit rules for FUTA tax , later in this section.

FUTA tax rate.

The FUTA tax rate is 6.0% for 2017. The tax applies to the first $7,000 you pay to each employee as wages during the year. The $7,000 is the federal wage base. Your state wage base may be different. Generally, you can take a credit against your FUTA tax for amounts you paid into state unemployment funds. The credit may be as much as 5.4% of wages subject to FUTA tax. If you’re entitled to the maximum 5.4% credit, the FUTA tax rate after credit is 0.6%. You’re entitled to the maximum credit if you paid your state unemployment taxes in full, on time, and on all the same wages as are subject to FUTA tax, and as long as the state isn’t determined to be a credit reduction state. See the Instructions for Form 940 to determine the credit.

In some states, the wages subject to state unemployment tax are the same as the wages subject to FUTA tax. However, certain states exclude some types of wages from state unemployment tax, even though they are subject to FUTA tax (for example, wages paid to corporate officers, certain payments of sick pay by unions, and certain fringe benefits). In such a case, you may be required to deposit more than 0.6% FUTA tax on those wages. See the Instructions for Form 940 for further guidance.

 

 

 

Successor employer.

If you have acquired a business from someone else, you may be able to claim a special credit as a successor employer. See the Instructions for Form 940.

 

 

 

Deposit rules for FUTA tax.

Generally, deposit FUTA tax quarterly. To figure your FUTA tax, multiply 0.006 times the amount of wages paid to each employee during the quarter. This amount may need to be adjusted, however, depending on your entitlement to the credit for state unemployment contributions. See the Instructions for Form 940. When an employee’s wages reach $7,000 for the calendar year, don’t figure any additional FUTA tax for that employee. If the FUTA tax for the quarter (plus any undeposited FUTA tax from prior quarters) is more than $500, deposit the FUTA tax by EFT as explained in section 7, by the last day of the month following the end of the quarter. If the amount is $500 or less, you don’t have to deposit it, but you must add it to the amount of tax for the next quarter to determine whether a deposit is required for that quarter.

If your liability for the fourth quarter (plus any undeposited amount from any earlier quarter) is over $500, deposit the entire amount by the due date of Form 940 (January 31). If it is $500 or less, you can make a deposit, pay the tax with a major credit card, debit card, or pay the tax with a check or money order with your Form 940 by January 31. If you file Form 940 electronically, you can e-file and e-pay (EFW). For more information on paying your taxes with a credit or debit card or using EFW, visit the IRS website at IRS.gov/payments.

 

 

 

Filing Form 940.

File your 2016 Form 940 by January 31, 2017. If you make deposits on time in full payment of the tax due for the year, you may file Form 940 by February 10.

 

 

 

11. Reconciling Wage Reporting Forms

When there are discrepancies between amounts reported on Form 943 filed with the IRS and Forms W-2 and W-3 filed with the SSA, the IRS may contact you to resolve the discrepancies.

To help reduce discrepancies:

1. Report bonuses as wages and as social security and Medicare wages on Forms W-2 and 943;
2. Report social security and Medicare wages and taxes separately on Forms W-2, W-3, and 943;
3. Report social security taxes on Form W-2 in the box for social security tax withheld (box 4), not as social security wages;
4. Report Medicare taxes on Form W-2 in the box for Medicare tax withheld (box 6), not as Medicare wages;
5. Make sure that social security wages for each employee don’t exceed the annual social security wage base; and
6. Don’t report noncash wages that aren’t subject to social security or Medicare taxes as social security or Medicare wages.

Take the following steps to reduce the discrepancies between amounts reported on Forms W-2, W-3, and 943.

1. Be sure that the amounts on Form W-3 are the total amounts from Forms W-2, excluding any amounts from Forms W-2 that were marked void.
2. Reconcile Form W-3 with your Form 943 by comparing amounts reported for the following items.
3. Federal income tax withheld.
4. Social security wages and Medicare wages.
5. Social security and Medicare taxes. Generally, the amounts shown on Form 943, including current year adjustments, should be approximately twice the amounts shown on Form W-3.

Amounts reported on Forms W-2, W-3, and 943 may not match for valid reasons. For example, if you withheld any Additional Medicare Tax from your employee’s wages, the amount of Medicare tax that is reported on Form 943, line 5, won’t be twice the amount of the Medicare tax withheld that is reported in box 6 of Form W-3. If they don’t match, you should determine that the reasons are valid. Keep your reconciliation so that you will have a record of why amounts didn’t match in case there are inquiries from the IRS or the SSA.

12. How Do Employment Taxes Apply to Farmwork?

Type of employment            Income Tax Withholding, Social Security, and Medicare (including Additional Medicare Tax when wages are paid in excess of $200,000)         Federal Unemployment Tax

Farm Employment Includes:

1. Cultivating soil; raising or harvesting any agricultural or horticultural commodity; the care of livestock, poultry, bees, fur-bearing animals, or wildlife. Taxable if $150 test or $2,500 test is met. See section 4. Taxable if either test in section 10 is met.
2. Work on a farm if major farm duties are in management or maintenance, etc., of farm tools or equipment or salvaging timber, or clearing brush or other debris, left by hurricane.
3. Work in connection with the production and harvesting of turpentine and other oleoresinous products.
4. Cotton ginning.
5. Operating or maintenance of ditches, reservoirs, canals, or waterways used only for supplying or storing water for farming purposes and not owned or operated for profit.
6. Processing, packaging, etc., any commodity in its unmanufactured state if employed by farm operator who produced over half of commodity processed or by group of up to 20 unincorporated farm operators if they produced all the commodity.*
7. Hatching poultry on a farm.
8. Production or harvesting of maple syrup on a farm.

Farm Employment Doesn’t Include:

1. Handling or processing commodities after delivery to terminal market for commercial canning or freezing. Taxable under general employment rules. Farm rules don’t apply. Taxable under general FUTA rules. Farm rules don’t apply.
2. Operating or maintenance of ditches, canals, reservoirs or waterways not meeting tests in (5) above.
3. Processing, packaging, delivering, etc., any commodity in its unmanufactured state if group of farm operators don’t meet the tests in (6) above.
4. Household employment.

Special Employment Situations:

1. Services not in the course of employer’s trade or business on farm operated for profit (cash payments only). Taxable if $150 test or $2,500 test is met (see section 4), unless performed by parent employed by child. Taxable only if $50 or more is paid in a quarter and employee works on 24 or more different days in current or prior quarter.
2. Workers admitted under section 101(a)(15)(H)(ii)(a) of the Immigration and Nationality Act on a temporary basis to perform agricultural labor (“H-2A” workers). Exempt. Exempt.
3. Family employment. Exempt for employer’s child under age 18, but counted for $150 test or $2,500 test. Taxable for spouse of employer. Exempt if services performed by employer’s parent or spouse or by employer’s child under age 21.

*For federal unemployment tax, farmwork includes workers employed by a group of operators, if they produce more than one-half of the commodity.

13. Federal Income Tax Withholding Methods

There are several methods to figure federal income tax withholding for employees. The most common are the wage bracket method and the percentage method.

Wage Bracket Method

Under the wage bracket method, find the proper table (on pages 26–45) for your payroll period and the employee’s marital status as shown on his or her Form W-4. Then, based on the number of withholding allowances claimed on the Form W-4 and the amount of wages, find the amount of federal income tax to withhold. If your employee is claiming more than 10 withholding allowances, see below.

If you can’t use the wage bracket tables because wages exceed the amount shown in the last bracket of the table, use the percentage method of withholding described later in this section. Be sure to reduce wages by the amount of total withholding allowances (shown in the table below) before using the percentage method tables on pages 24 and 25.

Adjusting wage bracket withholding for employees claiming over 10 withholding allowances.

To adapt the wage bracket tables for employees who are claiming over 10 allowances, follow these steps.

1. Multiply the number of withholding allowances that is over 10 by the allowance value for the payroll period. The allowance values are in the Percentage Method—2017 Amount for One Withholding Allowance table shown later.
2. Subtract the result from the employee’s wages.
3. On this amount, find and withhold the tax in the column for 10 allowances.

This is a voluntary method. If you use the wage bracket tables, you may continue to withhold the amount in the “10” column when your employee has more than 10 allowances, using the method above. You can also use the other methods described later.

 

 

 

Percentage Method

If you don’t want to use the wage bracket tables on pages 26–45 to figure how much federal income tax to withhold, you can use the percentage method based on the table on this page and the appropriate rate table. This method works for any number of withholding allowances the employee claims and any amount of wages.

Use these steps to figure the federal income tax to withhold under the percentage method.

1. Multiply one withholding allowance (see table later) by the number of allowances the employee claims.
2. Subtract that amount from the employee’s wages.
3. Determine the amount to withhold from the appropriate table on pages 24 and 25.

Percentage Method—2017 Amount for One Withholding Allowance

Payroll Period           One Withholding Allowance

Weekly           $ 77.90

Biweekly        155.80

Semimonthly 168.80

Monthly          337.50

Quarterly        1,012.50

Semiannually           2,025.00

Annually        4,050.00

Daily or miscellaneous (each day of the payroll period)            15.60

 

Example.

An unmarried employee is paid $800 weekly. This employee has a Form W-4 in effect claiming two withholding allowances. Using the percentage method, figure the federal income tax withholding as follows.

1. Total wage payment $800.00
2. One allowance $77.90
3. Allowances claimed on Form W-4

2

4. Multiply line 2 by line 3 $155.80
5. Amount subject to withholding (subtract line 4 from line 1) $644.20
6. Tax to be withheld on $644.20 from Table 1—single person, page 24 $81.03

To figure the federal income tax to withhold, you may reduce the last digit of the wages to zero, or figure the wages to the nearest dollar.

Withholding based on annual wages.

Figure the federal income tax to withhold on annual wages under thePercentage Method for an annual payroll period. Then prorate the tax back to the payroll period.

Example.

A married person claims four withholding allowances. She is paid $1,000 a week. Multiply the weekly wages by 52 weeks to figure the annual wage of $52,000. Subtract $16,200 (the value of four withholding allowances annually) for a balance of $35,800. Using column (b) of Table 7—Annual Payroll Period on page 25, the annual federal income tax withholding is $3,140. Divide the annual amount by 52. The weekly federal income tax to withhold is $60.38.

 

 

 

Alternative Methods of Federal Income Tax Withholding

Rather than the Percentage Method or Wage Bracket Method described above, you can use an alternative method to withhold federal income tax. Section 9 of Pub. 15-A describes these alternative methods.

Percentage Method Tables for Income Tax Withholding

(For Wages Paid in 2017)

TABLE 1—WEEKLY Payroll Period

 

(a) SINGLE person (including head of household)—    (b) MARRIED person—

If the amount of wages

(after subtracting

withholding allowances) is: The amount of income tax

to withhold is:           If the amount of wages

(after subtracting

withholding allowances) is: The amount of income tax

to withhold is:

Not over $ 44            $0                    Not over $166           $0

Over—            But not over—           of excess over—      Over—            But not over—           of excess over—

$44     —$224                       $0.00 plus 10%        —$44 $166   —$525                       $0.00 plus 10%            —$166

$224   —$774                       $18.00 plus 15%      —$224           $525   —$1,626                    $35.90 plus 15%    —$525

$774   —$1,812                    $100.50 plus 25%    —$774           $1,626            —$3,111                    $201.05 plus 25%    —$1,626

$1,812            —$3,730                    $360.00 plus 28%    —$1,812        $3,111            —$4,654                    $572.30 plus 28%    —$3,111

$3,730            —$8,058                    $897.04 plus 33%    —$3,730        $4,654            —$8,180                    $1,004.34 plus 33% —$4,654

$8,058            —$8,090                    $2,325.28 plus 35% —$8,058        $8,180            —$9,218                    $2,167.92 plus 35% —$8,180

$8,090                        $2,336.48 plus 39.6%         —$8,090        $9,218                        $2,531.22 plus 39.6% —$9,218

TABLE 2—BIWEEKLY Payroll Period

 

(a) SINGLE person (including head of household)—                (b) MARRIED person—

If the amount of wages

(after subtracting

withholding allowances) is: The amount of income tax

to withhold is:           If the amount of wages

(after subtracting

withholding allowances) is: The amount of income tax

to withhold is:

Not over $88 $0                    Not over $333           $0

Over—            But not over—           of excess over—      Over—            But not over—           of excess over—

$88     —$447                       $0.00 plus 10%        —$88 $333   —$1,050                    $0.00 plus 10%            —$333

$447   —$1,548                    $35.90 plus 15%      —$447           $1,050            —$3,252                    $71.70 plus 15%      —$1,050

$1,548            —$3,623                    $201.05 plus 25%    —$1,548        $3,252            —$6,221                    $402.00 plus 25%    —$3,252

$3,623            —$7,460                    $719.80 plus 28%    —$3,623        $6,221            —$9,308                    $1,144.25 plus 28% —$6,221

$7,460            —$16,115                  $1,794.16 plus 33% —$7,460        $9,308            —$16,360                  $2,008.61 plus 33% —$9,308

$16,115          —$16,181                  $4,650.31 plus 35% —$16,115      $16,360          —$18,437                  $4,335.77 plus 35% —$16,360

$16,181                      $4,673.41 plus 39.6%         —$16,181      $18,437                      $5,062.72 plus 39.6% —$18,437

TABLE 3—SEMIMONTHLY Payroll Period

 

(a) SINGLE person (including head of household)—    (b) MARRIED person—

If the amount of wages

(after subtracting

withholding allowances) is: The amount of income tax

to withhold is:           If the amount of wages

(after subtracting

withholding allowances) is: The amount of income tax

to withhold is:

Not over $96 $0                    Not over $360           $0

Over—            But not over—           of excess over—      Over—            But not over—           of excess over—

$96     —$484                       $0.00 plus 10%        —$96 $360   —$1,138                    $0.00 plus 10%            —$360

$484   —$1,677                    $38.80 plus 15%      —$484           $1,138            —$3,523                    $77.80 plus 15%      —$1,138

$1,677            —$3,925                    $217.75 plus 25%    —$1,677        $3,523            —$6,740                    $435.55 plus 25%    —$3,523

$3,925            —$8,081                    $779.75 plus 28%    —$3,925        $6,740            —$10,083                  $1,239.80 plus 28% —$6,740

$8,081            —$17,458                  $1,943.43 plus 33% —$8,081        $10,083          —$17,723                  $2,175.84 plus 33% —$10,083

$17,458          —$17,529                  $5,037.84 plus 35% —$17,458      $17,723          —$19,973                  $4,697.04 plus 35% —$17,723

$17,529                      $5,062.69 plus 39.6%         —$17,529      $19,973                      $5,484.54 plus 39.6% —$19,973

TABLE 4—MONTHLY Payroll Period

 

(a) SINGLE person (including head of household)—    (b) MARRIED person—

If the amount of wages

(after subtracting

withholding allowances) is: The amount of income tax

to withhold is:           If the amount of wages

(after subtracting

withholding allowances) is: The amount of income tax

to withhold is:

Not over $192           $0                    Not over $721           $0

Over—            But not over—           of excess over—      Over—            But not over—           of excess over—

$192   —$969                       $0.00 plus 10%        —$192           $721   —$2,275                    $0.00 plus 10%    —$721

$969   —$3,354                    $77.70 plus 15%      —$969           $2,275            —$7,046                    $155.40 plus 15%    —$2,275

$3,354            —$7,850                    $435.45 plus 25%    —$3,354        $7,046            —$13,479                  $871.05 plus 25%    —$7,046

$7,850            —$16,163                  $1,559.45 plus 28% —$7,850        $13,479          —$20,167                  $2,479.30 plus 28% —$13,479

$16,163          —$34,917                  $3,887.09 plus 33% —$16,163      $20,167          —$35,446                  $4,351.94 plus 33% —$20,167

$34,917          —$35,058                  $10,075.91 plus 35%          —$34,917      $35,446          —$39,946                        $9,394.01 plus 35% —$35,446

$35,058                      $10,125.26 plus 39.6%       —$35,058      $39,946                      $10,969.01 plus 39.6% —$39,946

 

Percentage Method Tables for Income Tax Withholding (continued)

(For Wages Paid in 2017)

TABLE 5—QUARTERLY Payroll Period

 

(a) SINGLE person (including head of household)—    (b) MARRIED person—

If the amount of wages

(after subtracting

withholding allowances) is: The amount of income tax

to withhold is:           If the amount of wages

(after subtracting

withholding allowances) is: The amount of income tax

to withhold is:

Not over $575           $0                    Not over $2,163        $0

Over—            But not over—           of excess over—      Over—            But not over—           of excess over—

$575   —$2,906                    $0.00 plus 10%        —$575           $2,163            —$6,825                    $0.00 plus 10%        —$2,163

$2,906            —$10,063                  $233.10 plus 15%    —$2,906        $6,825            —$21,138                  $466.20 plus 15%    —$6,825

$10,063          —$23,550                  $1,306.65 plus 25% —$10,063      $21,138          —$40,438                  $2,613.15 plus 25% —$21,138

$23,550          —$48,488                  $4,678.40 plus 28% —$23,550      $40,438          —$60,500                  $7,438.15 plus 28% —$40,438

$48,488          —$104,750               $11,661.04 plus 33%          —$48,488      $60,500          —$106,338                        $13,055.51 plus 33%          —$60,500

$104,750       —$105,175               $30,227.50 plus 35%          —$104,750   $106,338       —$119,838                        $28,182.05 plus 35%          —$106,338

$105,175                   $30,376.25 plus 39.6%       —$105,175   $119,838                   $32,907.05 plus 39.6% —$119,838

TABLE 6—SEMIANNUAL Payroll Period

 

(a) SINGLE person (including head of household)—    (b) MARRIED person—

If the amount of wages

(after subtracting

withholding allowances) is: The amount of income tax

to withhold is:           If the amount of wages

(after subtracting

withholding allowances) is: The amount of income tax

to withhold is:

Not over $1,150        $0                    Not over $4,325        $0

Over—            But not over—           of excess over—      Over—            But not over—           of excess over—

$1,150            —$5,813                    $0.00 plus 10%        —$1,150        $4,325            —$13,650                  $0.00 plus 10%        —$4,325

$5,813            —$20,125                  $466.30 plus 15%    —$5,813        $13,650          —$42,275                  $932.50 plus 15%    —$13,650

$20,125          —$47,100                  $2,613.10 plus 25% —$20,125      $42,275          —$80,875                  $5,226.25 plus 25% —$42,275

$47,100          —$96,975                  $9,356.85 plus 28% —$47,100      $80,875          —$121,000               $14,876.25 plus 28%          —$80,875

$96,975          —$209,500               $23,321.85 plus 33%          —$96,975      $121,000       —$212,675                        $26,111.25 plus 33%          —$121,000

$209,500       —$210,350               $60,455.10 plus 35%          —$209,500   $212,675       —$239,675                        $56,364.00 plus 35%          —$212,675

$210,350                   $60,752.60 plus 39.6%       —$210,350   $239,675                   $65,814.00 plus 39.6% —$239,675

TABLE 7—ANNUAL Payroll Period

 

(a) SINGLE person (including head of household)—    (b) MARRIED person—

If the amount of wages

(after subtracting

withholding allowances) is: The amount of income tax

to withhold is:           If the amount of wages

(after subtracting

withholding allowances) is: The amount of income tax

to withhold is:

Not over $2,300        $0                    Not over $8,650        $0

Over—            But not over—           of excess over—      Over—            But not over—           of excess over—

$2,300            —$11,625                  $0.00 plus 10%        —$2,300        $8,650            —$27,300                  $0.00 plus 10%        —$8,650

$11,625          —$40,250                  $932.50 plus 15%    —$11,625      $27,300          —$84,550                  $1,865.00 plus 15% —$27,300

$40,250          —$94,200                  $5,226.25 plus 25% —$40,250      $84,550          —$161,750               $10,452.50 plus 25%          —$84,550

$94,200          —$193,950               $18,713.75 plus 28%          —$94,200      $161,750       —$242,000                        $29,752.50 plus 28%          —$161,750

$193,950       —$419,000               $46,643.75 plus 33%          —$193,950   $242,000       —$425,350                        $52,222.50 plus 33%          —$242,000

$419,000       —$420,700               $120,910.25 plus 35%        —$419,000   $425,350       —$479,350                        $112,728.00 plus 35%        —$425,350

$420,700                   $121,505.25 plus 39.6%     —$420,700   $479,350                   $131,628.00 plus 39.6% —$479,350

TABLE 8—DAILY or MISCELLANEOUS Payroll Period

 

(a) SINGLE person (including head of household)—    (b) MARRIED person—

If the amount of wages

(after subtracting

withholding allowances)

divided by the number of

days in the payroll period is:          The amount of income tax

to withhold per day is:         If the amount of wages

(after subtracting

withholding allowances)

divided by the number of

days in the payroll period is:          The amount of income tax

to withhold per day is:

Not over $8.80          $0                    Not over $33.30        $0

Over—            But not over—           of excess over—      Over—            But not over—           of excess over—

$8.80  —$44.70                    $0.00 plus 10%        —$8.80          $33.30            —$105.00                  $0.00 plus 10%        —$33.30

$44.70            —$154.80                  $3.59 plus 15%        —$44.70        $105.00          —$325.20                  $7.17 plus 15%        —$105.00

$154.80          —$362.30                  $20.11 plus 25%      —$154.80      $325.20          —$622.10                  $40.20 plus 25%      —$325.20

$362.30          —$746.00                  $71.99 plus 28%      —$362.30      $622.10          —$930.80                  $114.43 plus 28%    —$622.10

$746.00          —$1,611.50              $179.43 plus 33%    —$746.00      $930.80          —$1,636.00              $200.87 plus 33%    —$930.80

$1,611.50      —$1,618.10              $465.05 plus 35%    —$1,611.50  $1,636.00      —$1,843.70              $433.59 plus 35%    —$1,636.00

$1,618.10                  $467.36 plus 39.6% —$1,618.10  $1,843.70                  $506.29 plus 39.6% —$1,843.70

 

Wage Bracket Method Tables for Income Tax Withholding

SINGLE Persons—WEEKLY Payroll Period

(For Wages Paid through December 31, 2017)

And the wages are– And the number of withholding allowances claimed is—

At least           But less than 0          1          2          3          4          5          6          7          8          9          10

The amount of income tax to be withheld is—

$ 0       $55     $0        $0        $0        $0        $0        $0        $0        $0        $0        $0        $0

55        60        1          0          0          0          0          0          0          0          0          0          0

60        65        2          0          0          0          0          0          0          0          0          0          0

65        70        2          0          0          0          0          0          0          0          0          0          0

70        75        3          0          0          0          0          0          0          0          0          0          0

75        80        3          0          0          0          0          0          0          0          0          0          0

80        85        4          0          0          0          0          0          0          0          0          0          0

85        90        4          0          0          0          0          0          0          0          0          0          0

90        95        5          0          0          0          0          0          0          0          0          0          0

95        100     5          0          0          0          0          0          0          0          0          0          0

100     105     6          0          0          0          0          0          0          0          0          0          0

105     110     6          0          0          0          0          0          0          0          0          0          0

110     115     7          0          0          0          0          0          0          0          0          0          0

115     120     7          0          0          0          0          0          0          0          0          0          0

120     125     8          0          0          0          0          0          0          0          0          0          0

125     130     8          1          0          0          0          0          0          0          0          0          0

130     135     9          1          0          0          0          0          0          0          0          0          0

135     140     9          2          0          0          0          0          0          0          0          0          0

140     145     10        2          0          0          0          0          0          0          0          0          0

145     150     10        3          0          0          0          0          0          0          0          0          0

150     155     11        3          0          0          0          0          0          0          0          0          0

155     160     11        4          0          0          0          0          0          0          0          0          0

160     165     12        4          0          0          0          0          0          0          0          0          0

165     170     12        5          0          0          0          0          0          0          0          0          0

170     175     13        5          0          0          0          0          0          0          0          0          0

175     180     13        6          0          0          0          0          0          0          0          0          0

180     185     14        6          0          0          0          0          0          0          0          0          0

185     190     14        7          0          0          0          0          0          0          0          0          0

190     195     15        7          0          0          0          0          0          0          0          0          0

195     200     15        8          0          0          0          0          0          0          0          0          0

200     210     16        8          1          0          0          0          0          0          0          0          0

210     220     17        9          2          0          0          0          0          0          0          0          0

220     230     18        10        3          0          0          0          0          0          0          0          0

230     240     20        11        4          0          0          0          0          0          0          0          0

240     250     21        12        5          0          0          0          0          0          0          0          0

250     260     23        13        6          0          0          0          0          0          0          0          0

260     270     24        14        7          0          0          0          0          0          0          0          0

270     280     26        15        8          0          0          0          0          0          0          0          0

280     290     27        16        9          1          0          0          0          0          0          0          0

290     300     29        17        10        2          0          0          0          0          0          0          0

300     310     30        18        11        3          0          0          0          0          0          0          0

310     320     32        20        12        4          0          0          0          0          0          0          0

320     330     33        21        13        5          0          0          0          0          0          0          0

330     340     35        23        14        6          0          0          0          0          0          0          0

340     350     36        24        15        7          0          0          0          0          0          0          0

350     360     38        26        16        8          0          0          0          0          0          0          0

360     370     39        27        17        9          1          0          0          0          0          0          0

370     380     41        29        18        10        2          0          0          0          0          0          0

380     390     42        30        19        11        3          0          0          0          0          0          0

390     400     44        32        20        12        4          0          0          0          0          0          0

400     410     45        33        22        13        5          0          0          0          0          0          0

410     420     47        35        23        14        6          0          0          0          0          0          0

420     430     48        36        25        15        7          0          0          0          0          0          0

430     440     50        38        26        16        8          0          0          0          0          0          0

440     450     51        39        28        17        9          1          0          0          0          0          0

450     460     53        41        29        18        10        2          0          0          0          0          0

460     470     54        42        31        19        11        3          0          0          0          0          0

470     480     56        44        32        21        12        4          0          0          0          0          0

480     490     57        45        34        22        13        5          0          0          0          0          0

490     500     59        47        35        24        14        6          0          0          0          0          0

500     510     60        48        37        25        15        7          0          0          0          0          0

510     520     62        50        38        27        16        8          0          0          0          0          0

520     530     63        51        40        28        17        9          1          0          0          0          0

530     540     65        53        41        30        18        10        2          0          0          0          0

540     550     66        54        43        31        19        11        3          0          0          0          0

550     560     68        56        44        33        21        12        4          0          0          0          0

560     570     69        57        46        34        22        13        5          0          0          0          0

570     580     71        59        47        36        24        14        6          0          0          0          0

580     590     72        60        49        37        25        15        7          0          0          0          0

590     600     74        62        50        39        27        16        8          1          0          0          0

$600   $610   $75     $63     $52     $40     $28     $17     $9        $2        $0        $0        $0

610     620     77        65        53        42        30        18        10        3          0          0          0

620     630     78        66        55        43        31        20        11        4          0          0          0

630     640     80        68        56        45        33        21        12        5          0          0          0

640     650     81        69        58        46        34        23        13        6          0          0          0

650     660     83        71        59        48        36        24        14        7          0          0          0

660     670     84        72        61        49        37        26        15        8          0          0          0

670     680     86        74        62        51        39        27        16        9          1          0          0

680     690     87        75        64        52        40        29        17        10        2          0          0

690     700     89        77        65        54        42        30        19        11        3          0          0

700     710     90        78        67        55        43        32        20        12        4          0          0

710     720     92        80        68        57        45        33        22        13        5          0          0

720     730     93        81        70        58        46        35        23        14        6          0          0

730     740     95        83        71        60        48        36        25        15        7          0          0

740     750     96        84        73        61        49        38        26        16        8          0          0

750     760     98        86        74        63        51        39        28        17        9          1          0

760     770     99        87        76        64        52        41        29        18        10        2          0

770     780     101     89        77        66        54        42        31        19        11        3          0

780     790     103     90        79        67        55        44        32        20        12        4          0

790     800     106     92        80        69        57        45        34        22        13        5          0

800     810     108     93        82        70        58        47        35        23        14        6          0

810     820     111     95        83        72        60        48        37        25        15        7          0

820     830     113     96        85        73        61        50        38        26        16        8          0

830     840     116     98        86        75        63        51        40        28        17        9          1

840     850     118     99        88        76        64        53        41        29        18        10        2

850     860     121     101     89        78        66        54        43        31        19        11        3

860     870     123     104     91        79        67        56        44        32        21        12        4

870     880     126     106     92        81        69        57        46        34        22        13        5

880     890     128     109     94        82        70        59        47        35        24        14        6

890     900     131     111     95        84        72        60        49        37        25        15        7

900     910     133     114     97        85        73        62        50        38        27        16        8

910     920     136     116     98        87        75        63        52        40        28        17        9

920     930     138     119     100     88        76        65        53        41        30        18        10

930     940     141     121     102     90        78        66        55        43        31        20        11

940     950     143     124     104     91        79        68        56        44        33        21        12

950     960     146     126     107     93        81        69        58        46        34        23        13

960     970     148     129     109     94        82        71        59        47        36        24        14

970     980     151     131     112     96        84        72        61        49        37        26        15

980     990     153     134     114     97        85        74        62        50        39        27        16

990     1,000  156     136     117     99        87        75        64        52        40        29        17

1,000  1,010  158     139     119     100     88        77        65        53        42        30        18

1,010  1,020  161     141     122     102     90        78        67        55        43        32        20

1,020  1,030  163     144     124     105     91        80        68        56        45        33        21

1,030  1,040  166     146     127     107     93        81        70        58        46        35        23

1,040  1,050  168     149     129     110     94        83        71        59        48        36        24

1,050  1,060  171     151     132     112     96        84        73        61        49        38        26

1,060  1,070  173     154     134     115     97        86        74        62        51        39        27

1,070  1,080  176     156     137     117     99        87        76        64        52        41        29

1,080  1,090  178     159     139     120     100     89        77        65        54        42        30

1,090  1,100  181     161     142     122     103     90        79        67        55        44        32

1,100  1,110  183     164     144     125     105     92        80        68        57        45        33

1,110  1,120  186     166     147     127     108     93        82        70        58        47        35

1,120  1,130  188     169     149     130     110     95        83        71        60        48        36

1,130  1,140  191     171     152     132     113     96        85        73        61        50        38

1,140  1,150  193     174     154     135     115     98        86        74        63        51        39

1,150  1,160  196     176     157     137     118     99        88        76        64        53        41

1,160  1,170  198     179     159     140     120     101     89        77        66        54        42

1,170  1,180  201     181     162     142     123     103     91        79        67        56        44

1,180  1,190  203     184     164     145     125     106     92        80        69        57        45

1,190  1,200  206     186     167     147     128     108     94        82        70        59        47

1,200  1,210  208     189     169     150     130     111     95        83        72        60        48

1,210  1,220  211     191     172     152     133     113     97        85        73        62        50

1,220  1,230  213     194     174     155     135     116     98        86        75        63        51

1,230  1,240  216     196     177     157     138     118     100     88        76        65        53

1,240  1,250  218     199     179     160     140     121     101     89        78        66        54

 

$1,250 and over       Use Table 1(a) for a SINGLE person on page 24. Also see the instructions on page 23.

 

Wage Bracket Method Tables for Income Tax Withholding

MARRIED Persons—WEEKLY Payroll Period

(For Wages Paid through December 31, 2017)

And the wages are– And the number of withholding allowances claimed is—

At least           But less than 0          1          2          3          4          5          6          7          8          9          10

The amount of income tax to be withheld is—

$ 0       $170   $0        $0        $0        $0        $0        $0        $0        $0        $0        $0        $0

170     175     1          0          0          0          0          0          0          0          0          0          0

175     180     1          0          0          0          0          0          0          0          0          0          0

180     185     2          0          0          0          0          0          0          0          0          0          0

185     190     2          0          0          0          0          0          0          0          0          0          0

190     195     3          0          0          0          0          0          0          0          0          0          0

195     200     3          0          0          0          0          0          0          0          0          0          0

200     210     4          0          0          0          0          0          0          0          0          0          0

210     220     5          0          0          0          0          0          0          0          0          0          0

220     230     6          0          0          0          0          0          0          0          0          0          0

230     240     7          0          0          0          0          0          0          0          0          0          0

240     250     8          0          0          0          0          0          0          0          0          0          0

250     260     9          1          0          0          0          0          0          0          0          0          0

260     270     10        2          0          0          0          0          0          0          0          0          0

270     280     11        3          0          0          0          0          0          0          0          0          0

280     290     12        4          0          0          0          0          0          0          0          0          0

290     300     13        5          0          0          0          0          0          0          0          0          0

300     310     14        6          0          0          0          0          0          0          0          0          0

310     320     15        7          0          0          0          0          0          0          0          0          0

320     330     16        8          0          0          0          0          0          0          0          0          0

330     340     17        9          1          0          0          0          0          0          0          0          0

340     350     18        10        2          0          0          0          0          0          0          0          0

350     360     19        11        3          0          0          0          0          0          0          0          0

360     370     20        12        4          0          0          0          0          0          0          0          0

370     380     21        13        5          0          0          0          0          0          0          0          0

380     390     22        14        6          0          0          0          0          0          0          0          0

390     400     23        15        7          0          0          0          0          0          0          0          0

400     410     24        16        8          1          0          0          0          0          0          0          0

410     420     25        17        9          2          0          0          0          0          0          0          0

420     430     26        18        10        3          0          0          0          0          0          0          0

430     440     27        19        11        4          0          0          0          0          0          0          0

440     450     28        20        12        5          0          0          0          0          0          0          0

450     460     29        21        13        6          0          0          0          0          0          0          0

460     470     30        22        14        7          0          0          0          0          0          0          0

470     480     31        23        15        8          0          0          0          0          0          0          0

480     490     32        24        16        9          1          0          0          0          0          0          0

490     500     33        25        17        10        2          0          0          0          0          0          0

500     510     34        26        18        11        3          0          0          0          0          0          0

510     520     35        27        19        12        4          0          0          0          0          0          0

520     530     36        28        20        13        5          0          0          0          0          0          0

530     540     37        29        21        14        6          0          0          0          0          0          0

540     550     39        30        22        15        7          0          0          0          0          0          0

550     560     40        31        23        16        8          0          0          0          0          0          0

560     570     42        32        24        17        9          1          0          0          0          0          0

570     580     43        33        25        18        10        2          0          0          0          0          0

580     590     45        34        26        19        11        3          0          0          0          0          0

590     600     46        35        27        20        12        4          0          0          0          0          0

600     610     48        36        28        21        13        5          0          0          0          0          0

610     620     49        38        29        22        14        6          0          0          0          0          0

620     630     51        39        30        23        15        7          0          0          0          0          0

630     640     52        41        31        24        16        8          0          0          0          0          0

640     650     54        42        32        25        17        9          1          0          0          0          0

650     660     55        44        33        26        18        10        2          0          0          0          0

660     670     57        45        34        27        19        11        3          0          0          0          0

670     680     58        47        35        28        20        12        4          0          0          0          0

680     690     60        48        37        29        21        13        5          0          0          0          0

690     700     61        50        38        30        22        14        6          0          0          0          0

700     710     63        51        40        31        23        15        7          0          0          0          0

710     720     64        53        41        32        24        16        8          0          0          0          0

720     730     66        54        43        33        25        17        9          1          0          0          0

730     740     67        56        44        34        26        18        10        2          0          0          0

740     750     69        57        46        35        27        19        11        3          0          0          0

750     760     70        59        47        36        28        20        12        4          0          0          0

760     770     72        60        49        37        29        21        13        5          0          0          0

770     780     73        62        50        38        30        22        14        6          0          0          0

780     790     75        63        52        40        31        23        15        7          0          0          0

790     800     76        65        53        41        32        24        16        8          1          0          0

$800   $810   $78     $66     $55     $43     $33     $25     $17     $9        $2        $0        $0

810     820     79        68        56        44        34        26        18        10        3          0          0

820     830     81        69        58        46        35        27        19        11        4          0          0

830     840     82        71        59        47        36        28        20        12        5          0          0

840     850     84        72        61        49        37        29        21        13        6          0          0

850     860     85        74        62        50        39        30        22        14        7          0          0

860     870     87        75        64        52        40        31        23        15        8          0          0

870     880     88        77        65        53        42        32        24        16        9          1          0

880     890     90        78        67        55        43        33        25        17        10        2          0

890     900     91        80        68        56        45        34        26        18        11        3          0

900     910     93        81        70        58        46        35        27        19        12        4          0

910     920     94        83        71        59        48        36        28        20        13        5          0

920     930     96        84        73        61        49        37        29        21        14        6          0

930     940     97        86        74        62        51        39        30        22        15        7          0

940     950     99        87        76        64        52        40        31        23        16        8          0

950     960     100     89        77        65        54        42        32        24        17        9          1

960     970     102     90        79        67        55        43        33        25        18        10        2

970     980     103     92        80        68        57        45        34        26        19        11        3

980     990     105     93        82        70        58        46        35        27        20        12        4

990     1,000  106     95        83        71        60        48        36        28        21        13        5

1,000  1,010  108     96        85        73        61        49        38        29        22        14        6

1,010  1,020  109     98        86        74        63        51        39        30        23        15        7

1,020  1,030  111     99        88        76        64        52        41        31        24        16        8

1,030  1,040  112     101     89        77        66        54        42        32        25        17        9

1,040  1,050  114     102     91        79        67        55        44        33        26        18        10

1,050  1,060  115     104     92        80        69        57        45        34        27        19        11

1,060  1,070  117     105     94        82        70        58        47        35        28        20        12

1,070  1,080  118     107     95        83        72        60        48        37        29        21        13

1,080  1,090  120     108     97        85        73        61        50        38        30        22        14

1,090  1,100  121     110     98        86        75        63        51        40        31        23        15

1,100  1,110  123     111     100     88        76        64        53        41        32        24        16

1,110  1,120  124     113     101     89        78        66        54        43        33        25        17

1,120  1,130  126     114     103     91        79        67        56        44        34        26        18

1,130  1,140  127     116     104     92        81        69        57        46        35        27        19

1,140  1,150  129     117     106     94        82        70        59        47        36        28        20

1,150  1,160  130     119     107     95        84        72        60        49        37        29        21

1,160  1,170  132     120     109     97        85        73        62        50        38        30        22

1,170  1,180  133     122     110     98        87        75        63        52        40        31        23

1,180  1,190  135     123     112     100     88        76        65        53        41        32        24

1,190  1,200  136     125     113     101     90        78        66        55        43        33        25

1,200  1,210  138     126     115     103     91        79        68        56        44        34        26

1,210  1,220  139     128     116     104     93        81        69        58        46        35        27

1,220  1,230  141     129     118     106     94        82        71        59        47        36        28

1,230  1,240  142     131     119     107     96        84        72        61        49        37        29

1,240  1,250  144     132     121     109     97        85        74        62        50        39        30

1,250  1,260  145     134     122     110     99        87        75        64        52        40        31

1,260  1,270  147     135     124     112     100     88        77        65        53        42        32

1,270  1,280  148     137     125     113     102     90        78        67        55        43        33

1,280  1,290  150     138     127     115     103     91        80        68        56        45        34

1,290  1,300  151     140     128     116     105     93        81        70        58        46        35

1,300  1,310  153     141     130     118     106     94        83        71        59        48        36

1,310  1,320  154     143     131     119     108     96        84        73        61        49        38

1,320  1,330  156     144     133     121     109     97        86        74        62        51        39

1,330  1,340  157     146     134     122     111     99        87        76        64        52        41

1,340  1,350  159     147     136     124     112     100     89        77        65        54        42

1,350  1,360  160     149     137     125     114     102     90        79        67        55        44

1,360  1,370  162     150     139     127     115     103     92        80        68        57        45

1,370  1,380  163     152     140     128     117     105     93        82        70        58        47

1,380  1,390  165     153     142     130     118     106     95        83        71        60        48

1,390  1,400  166     155     143     131     120     108     96        85        73        61        50

1,400  1,410  168     156     145     133     121     109     98        86        74        63        51

1,410  1,420  169     158     146     134     123     111     99        88        76        64        53

1,420  1,430  171     159     148     136     124     112     101     89        77        66        54

1,430  1,440  172     161     149     137     126     114     102     91        79        67        56

1,440  1,450  174     162     151     139     127     115     104     92        80        69        57

1,450  1,460  175     164     152     140     129     117     105     94        82        70        59

1,460  1,470  177     165     154     142     130     118     107     95        83        72        60

1,470  1,480  178     167     155     143     132     120     108     97        85        73        62

1,480  1,490  180     168     157     145     133     121     110     98        86        75        63

 

$1,490 and over       Use Table 1(b) for a MARRIED person on page 24. Also see the instructions on page 23.

 

Wage Bracket Method Tables for Income Tax Withholding

SINGLE Persons—BIWEEKLY Payroll Period

(For Wages Paid through December 31, 2017)

And the wages are– And the number of withholding allowances claimed is—

At least           But less than 0          1          2          3          4          5          6          7          8          9          10

The amount of income tax to be withheld is—

$ 0       $105   $0        $0        $0        $0        $0        $0        $0        $0        $0        $0        $0

105     110     2          0          0          0          0          0          0          0          0          0          0

110     115     2          0          0          0          0          0          0          0          0          0          0

115     120     3          0          0          0          0          0          0          0          0          0          0

120     125     3          0          0          0          0          0          0          0          0          0          0

125     130     4          0          0          0          0          0          0          0          0          0          0

130     135     4          0          0          0          0          0          0          0          0          0          0

135     140     5          0          0          0          0          0          0          0          0          0          0

140     145     5          0          0          0          0          0          0          0          0          0          0

145     150     6          0          0          0          0          0          0          0          0          0          0

150     155     6          0          0          0          0          0          0          0          0          0          0

155     160     7          0          0          0          0          0          0          0          0          0          0

160     165     7          0          0          0          0          0          0          0          0          0          0

165     170     8          0          0          0          0          0          0          0          0          0          0

170     175     8          0          0          0          0          0          0          0          0          0          0

175     180     9          0          0          0          0          0          0          0          0          0          0

180     185     9          0          0          0          0          0          0          0          0          0          0

185     190     10        0          0          0          0          0          0          0          0          0          0

190     195     10        0          0          0          0          0          0          0          0          0          0

195     200     11        0          0          0          0          0          0          0          0          0          0

200     205     11        0          0          0          0          0          0          0          0          0          0

205     210     12        0          0          0          0          0          0          0          0          0          0

210     215     12        0          0          0          0          0          0          0          0          0          0

215     220     13        0          0          0          0          0          0          0          0          0          0

220     225     13        0          0          0          0          0          0          0          0          0          0

225     230     14        0          0          0          0          0          0          0          0          0          0

230     235     14        0          0          0          0          0          0          0          0          0          0

235     240     15        0          0          0          0          0          0          0          0          0          0

240     245     15        0          0          0          0          0          0          0          0          0          0

245     250     16        0          0          0          0          0          0          0          0          0          0

250     260     17        1          0          0          0          0          0          0          0          0          0

260     270     18        2          0          0          0          0          0          0          0          0          0

270     280     19        3          0          0          0          0          0          0          0          0          0

280     290     20        4          0          0          0          0          0          0          0          0          0

290     300     21        5          0          0          0          0          0          0          0          0          0

300     310     22        6          0          0          0          0          0          0          0          0          0

310     320     23        7          0          0          0          0          0          0          0          0          0

320     330     24        8          0          0          0          0          0          0          0          0          0

330     340     25        9          0          0          0          0          0          0          0          0          0

340     350     26        10        0          0          0          0          0          0          0          0          0

350     360     27        11        0          0          0          0          0          0          0          0          0

360     370     28        12        0          0          0          0          0          0          0          0          0

370     380     29        13        0          0          0          0          0          0          0          0          0

380     390     30        14        0          0          0          0          0          0          0          0          0

390     400     31        15        0          0          0          0          0          0          0          0          0

400     410     32        16        1          0          0          0          0          0          0          0          0

410     420     33        17        2          0          0          0          0          0          0          0          0

420     430     34        18        3          0          0          0          0          0          0          0          0

430     440     35        19        4          0          0          0          0          0          0          0          0

440     450     36        20        5          0          0          0          0          0          0          0          0

450     460     37        21        6          0          0          0          0          0          0          0          0

460     470     39        22        7          0          0          0          0          0          0          0          0

470     480     40        23        8          0          0          0          0          0          0          0          0

480     490     42        24        9          0          0          0          0          0          0          0          0

490     500     43        25        10        0          0          0          0          0          0          0          0

500     520     45        27        11        0          0          0          0          0          0          0          0

520     540     48        29        13        0          0          0          0          0          0          0          0

540     560     51        31        15        0          0          0          0          0          0          0          0

560     580     54        33        17        1          0          0          0          0          0          0          0

580     600     57        35        19        3          0          0          0          0          0          0          0

600     620     60        37        21        5          0          0          0          0          0          0          0

620     640     63        40        23        7          0          0          0          0          0          0          0

640     660     66        43        25        9          0          0          0          0          0          0          0

660     680     69        46        27        11        0          0          0          0          0          0          0

680     700     72        49        29        13        0          0          0          0          0          0          0

700     720     75        52        31        15        0          0          0          0          0          0          0

720     740     78        55        33        17        2          0          0          0          0          0          0

740     760     81        58        35        19        4          0          0          0          0          0          0

760     780     84        61        38        21        6          0          0          0          0          0          0

780     800     87        64        41        23        8          0          0          0          0          0          0

$800   $820   $90     $67     $44     $25     $10     $0        $0        $0        $0        $0        $0

820     840     93        70        47        27        12        0          0          0          0          0          0

840     860     96        73        50        29        14        0          0          0          0          0          0

860     880     99        76        53        31        16        0          0          0          0          0          0

880     900     102     79        56        33        18        2          0          0          0          0          0

900     920     105     82        59        35        20        4          0          0          0          0          0

920     940     108     85        62        38        22        6          0          0          0          0          0

940     960     111     88        65        41        24        8          0          0          0          0          0

960     980     114     91        68        44        26        10        0          0          0          0          0

980     1,000  117     94        71        47        28        12        0          0          0          0          0

1,000  1,020  120     97        74        50        30        14        0          0          0          0          0

1,020  1,040  123     100     77        53        32        16        1          0          0          0          0

1,040  1,060  126     103     80        56        34        18        3          0          0          0          0

1,060  1,080  129     106     83        59        36        20        5          0          0          0          0

1,080  1,100  132     109     86        62        39        22        7          0          0          0          0

1,100  1,120  135     112     89        65        42        24        9          0          0          0          0

1,120  1,140  138     115     92        68        45        26        11        0          0          0          0

1,140  1,160  141     118     95        71        48        28        13        0          0          0          0

1,160  1,180  144     121     98        74        51        30        15        0          0          0          0

1,180  1,200  147     124     101     77        54        32        17        1          0          0          0

1,200  1,220  150     127     104     80        57        34        19        3          0          0          0

1,220  1,240  153     130     107     83        60        36        21        5          0          0          0

1,240  1,260  156     133     110     86        63        39        23        7          0          0          0

1,260  1,280  159     136     113     89        66        42        25        9          0          0          0

1,280  1,300  162     139     116     92        69        45        27        11        0          0          0

1,300  1,320  165     142     119     95        72        48        29        13        0          0          0

1,320  1,340  168     145     122     98        75        51        31        15        0          0          0

1,340  1,360  171     148     125     101     78        54        33        17        2          0          0

1,360  1,380  174     151     128     104     81        57        35        19        4          0          0

1,380  1,400  177     154     131     107     84        60        37        21        6          0          0

1,400  1,420  180     157     134     110     87        63        40        23        8          0          0

1,420  1,440  183     160     137     113     90        66        43        25        10        0          0

1,440  1,460  186     163     140     116     93        69        46        27        12        0          0

1,460  1,480  189     166     143     119     96        72        49        29        14        0          0

1,480  1,500  192     169     146     122     99        75        52        31        16        0          0

1,500  1,520  195     172     149     125     102     78        55        33        18        2          0

1,520  1,540  198     175     152     128     105     81        58        35        20        4          0

1,540  1,560  201     178     155     131     108     84        61        38        22        6          0

1,560  1,580  206     181     158     134     111     87        64        41        24        8          0

1,580  1,600  211     184     161     137     114     90        67        44        26        10        0

1,600  1,620  216     187     164     140     117     93        70        47        28        12        0

1,620  1,640  221     190     167     143     120     96        73        50        30        14        0

1,640  1,660  226     193     170     146     123     99        76        53        32        16        0

1,660  1,680  231     196     173     149     126     102     79        56        34        18        2

1,680  1,700  236     199     176     152     129     105     82        59        36        20        4

1,700  1,720  241     203     179     155     132     108     85        62        38        22        6

1,720  1,740  246     208     182     158     135     111     88        65        41        24        8

1,740  1,760  251     213     185     161     138     114     91        68        44        26        10

1,760  1,780  256     218     188     164     141     117     94        71        47        28        12

1,780  1,800  261     223     191     167     144     120     97        74        50        30        14

1,800  1,820  266     228     194     170     147     123     100     77        53        32        16

1,820  1,840  271     233     197     173     150     126     103     80        56        34        18

1,840  1,860  276     238     200     176     153     129     106     83        59        36        20

1,860  1,880  281     243     204     179     156     132     109     86        62        39        22

1,880  1,900  286     248     209     182     159     135     112     89        65        42        24

1,900  1,920  291     253     214     185     162     138     115     92        68        45        26

1,920  1,940  296     258     219     188     165     141     118     95        71        48        28

1,940  1,960  301     263     224     191     168     144     121     98        74        51        30

1,960  1,980  306     268     229     194     171     147     124     101     77        54        32

1,980  2,000  311     273     234     197     174     150     127     104     80        57        34

2,000  2,020  316     278     239     200     177     153     130     107     83        60        37

2,020  2,040  321     283     244     205     180     156     133     110     86        63        40

2,040  2,060  326     288     249     210     183     159     136     113     89        66        43

2,060  2,080  331     293     254     215     186     162     139     116     92        69        46

2,080  2,100  336     298     259     220     189     165     142     119     95        72        49

 

$2,100 and over       Use Table 2(a) for a SINGLE person on page 24. Also see the instructions on page 23.

 

Wage Bracket Method Tables for Income Tax Withholding

MARRIED Persons—BIWEEKLY Payroll Period

(For Wages Paid through December 31, 2017)

And the wages are– And the number of withholding allowances claimed is—

At least           But less than 0          1          2          3          4          5          6          7          8          9          10

The amount of income tax to be withheld is—

$ 0       $340   $0        $0        $0        $0        $0        $0        $0        $0        $0        $0        $0

340     350     1          0          0          0          0          0          0          0          0          0          0

350     360     2          0          0          0          0          0          0          0          0          0          0

360     370     3          0          0          0          0          0          0          0          0          0          0

370     380     4          0          0          0          0          0          0          0          0          0          0

380     390     5          0          0          0          0          0          0          0          0          0          0

390     400     6          0          0          0          0          0          0          0          0          0          0

400     410     7          0          0          0          0          0          0          0          0          0          0

410     420     8          0          0          0          0          0          0          0          0          0          0

420     430     9          0          0          0          0          0          0          0          0          0          0

430     440     10        0          0          0          0          0          0          0          0          0          0

440     450     11        0          0          0          0          0          0          0          0          0          0

450     460     12        0          0          0          0          0          0          0          0          0          0

460     470     13        0          0          0          0          0          0          0          0          0          0

470     480     14        0          0          0          0          0          0          0          0          0          0

480     490     15        0          0          0          0          0          0          0          0          0          0

490     500     16        1          0          0          0          0          0          0          0          0          0

500     520     18        2          0          0          0          0          0          0          0          0          0

520     540     20        4          0          0          0          0          0          0          0          0          0

540     560     22        6          0          0          0          0          0          0          0          0          0

560     580     24        8          0          0          0          0          0          0          0          0          0

580     600     26        10        0          0          0          0          0          0          0          0          0

600     620     28        12        0          0          0          0          0          0          0          0          0

620     640     30        14        0          0          0          0          0          0          0          0          0

640     660     32        16        1          0          0          0          0          0          0          0          0

660     680     34        18        3          0          0          0          0          0          0          0          0

680     700     36        20        5          0          0          0          0          0          0          0          0

700     720     38        22        7          0          0          0          0          0          0          0          0

720     740     40        24        9          0          0          0          0          0          0          0          0

740     760     42        26        11        0          0          0          0          0          0          0          0

760     780     44        28        13        0          0          0          0          0          0          0          0

780     800     46        30        15        0          0          0          0          0          0          0          0

800     820     48        32        17        1          0          0          0          0          0          0          0

820     840     50        34        19        3          0          0          0          0          0          0          0

840     860     52        36        21        5          0          0          0          0          0          0          0

860     880     54        38        23        7          0          0          0          0          0          0          0

880     900     56        40        25        9          0          0          0          0          0          0          0

900     920     58        42        27        11        0          0          0          0          0          0          0

920     940     60        44        29        13        0          0          0          0          0          0          0

940     960     62        46        31        15        0          0          0          0          0          0          0

960     980     64        48        33        17        1          0          0          0          0          0          0

980     1,000  66        50        35        19        3          0          0          0          0          0          0

1,000  1,020  68        52        37        21        5          0          0          0          0          0          0

1,020  1,040  70        54        39        23        7          0          0          0          0          0          0

1,040  1,060  72        56        41        25        9          0          0          0          0          0          0

1,060  1,080  75        58        43        27        11        0          0          0          0          0          0

1,080  1,100  78        60        45        29        13        0          0          0          0          0          0

1,100  1,120  81        62        47        31        15        0          0          0          0          0          0

1,120  1,140  84        64        49        33        17        2          0          0          0          0          0

1,140  1,160  87        66        51        35        19        4          0          0          0          0          0

1,160  1,180  90        68        53        37        21        6          0          0          0          0          0

1,180  1,200  93        70        55        39        23        8          0          0          0          0          0

1,200  1,220  96        72        57        41        25        10        0          0          0          0          0

1,220  1,240  99        75        59        43        27        12        0          0          0          0          0

1,240  1,260  102     78        61        45        29        14        0          0          0          0          0

1,260  1,280  105     81        63        47        31        16        0          0          0          0          0

1,280  1,300  108     84        65        49        33        18        2          0          0          0          0

1,300  1,320  111     87        67        51        35        20        4          0          0          0          0

1,320  1,340  114     90        69        53        37        22        6          0          0          0          0

1,340  1,360  117     93        71        55        39        24        8          0          0          0          0

1,360  1,380  120     96        73        57        41        26        10        0          0          0          0

1,380  1,400  123     99        76        59        43        28        12        0          0          0          0

1,400  1,420  126     102     79        61        45        30        14        0          0          0          0

1,420  1,440  129     105     82        63        47        32        16        1          0          0          0

1,440  1,460  132     108     85        65        49        34        18        3          0          0          0

1,460  1,480  135     111     88        67        51        36        20        5          0          0          0

1,480  1,500  138     114     91        69        53        38        22        7          0          0          0

$1,500            $1,520            $141   $117   $94     $71     $55     $40     $24     $9        $0        $0        $0

1,520  1,540  144     120     97        74        57        42        26        11        0          0          0

1,540  1,560  147     123     100     77        59        44        28        13        0          0          0

1,560  1,580  150     126     103     80        61        46        30        15        0          0          0

1,580  1,600  153     129     106     83        63        48        32        17        1          0          0

1,600  1,620  156     132     109     86        65        50        34        19        3          0          0

1,620  1,640  159     135     112     89        67        52        36        21        5          0          0

1,640  1,660  162     138     115     92        69        54        38        23        7          0          0

1,660  1,680  165     141     118     95        71        56        40        25        9          0          0

1,680  1,700  168     144     121     98        74        58        42        27        11        0          0

1,700  1,720  171     147     124     101     77        60        44        29        13        0          0

1,720  1,740  174     150     127     104     80        62        46        31        15        0          0

1,740  1,760  177     153     130     107     83        64        48        33        17        2          0

1,760  1,780  180     156     133     110     86        66        50        35        19        4          0

1,780  1,800  183     159     136     113     89        68        52        37        21        6          0

1,800  1,820  186     162     139     116     92        70        54        39        23        8          0

1,820  1,840  189     165     142     119     95        72        56        41        25        10        0

1,840  1,860  192     168     145     122     98        75        58        43        27        12        0

1,860  1,880  195     171     148     125     101     78        60        45        29        14        0

1,880  1,900  198     174     151     128     104     81        62        47        31        16        0

1,900  1,920  201     177     154     131     107     84        64        49        33        18        2

1,920  1,940  204     180     157     134     110     87        66        51        35        20        4

1,940  1,960  207     183     160     137     113     90        68        53        37        22        6

1,960  1,980  210     186     163     140     116     93        70        55        39        24        8

1,980  2,000  213     189     166     143     119     96        73        57        41        26        10

2,000  2,020  216     192     169     146     122     99        76        59        43        28        12

2,020  2,040  219     195     172     149     125     102     79        61        45        30        14

2,040  2,060  222     198     175     152     128     105     82        63        47        32        16

2,060  2,080  225     201     178     155     131     108     85        65        49        34        18

2,080  2,100  228     204     181     158     134     111     88        67        51        36        20

2,100  2,120  231     207     184     161     137     114     91        69        53        38        22

2,120  2,140  234     210     187     164     140     117     94        71        55        40        24

2,140  2,160  237     213     190     167     143     120     97        73        57        42        26

2,160  2,180  240     216     193     170     146     123     100     76        59        44        28

2,180  2,200  243     219     196     173     149     126     103     79        61        46        30

2,200  2,220  246     222     199     176     152     129     106     82        63        48        32

2,220  2,240  249     225     202     179     155     132     109     85        65        50        34

2,240  2,260  252     228     205     182     158     135     112     88        67        52        36

2,260  2,280  255     231     208     185     161     138     115     91        69        54        38

2,280  2,300  258     234     211     188     164     141     118     94        71        56        40

2,300  2,320  261     237     214     191     167     144     121     97        74        58        42

2,320  2,340  264     240     217     194     170     147     124     100     77        60        44

2,340  2,360  267     243     220     197     173     150     127     103     80        62        46

2,360  2,380  270     246     223     200     176     153     130     106     83        64        48

2,380  2,400  273     249     226     203     179     156     133     109     86        66        50

2,400  2,420  276     252     229     206     182     159     136     112     89        68        52

2,420  2,440  279     255     232     209     185     162     139     115     92        70        54

2,440  2,460  282     258     235     212     188     165     142     118     95        72        56

2,460  2,480  285     261     238     215     191     168     145     121     98        74        58

2,480  2,500  288     264     241     218     194     171     148     124     101     77        60

2,500  2,520  291     267     244     221     197     174     151     127     104     80        62

2,520  2,540  294     270     247     224     200     177     154     130     107     83        64

2,540  2,560  297     273     250     227     203     180     157     133     110     86        66

2,560  2,580  300     276     253     230     206     183     160     136     113     89        68

2,580  2,600  303     279     256     233     209     186     163     139     116     92        70

2,600  2,620  306     282     259     236     212     189     166     142     119     95        72

2,620  2,640  309     285     262     239     215     192     169     145     122     98        75

2,640  2,660  312     288     265     242     218     195     172     148     125     101     78

2,660  2,680  315     291     268     245     221     198     175     151     128     104     81

2,680  2,700  318     294     271     248     224     201     178     154     131     107     84

2,700  2,720  321     297     274     251     227     204     181     157     134     110     87

2,720  2,740  324     300     277     254     230     207     184     160     137     113     90

2,740  2,760  327     303     280     257     233     210     187     163     140     116     93

2,760  2,780  330     306     283     260     236     213     190     166     143     119     96

2,780  2,800  333     309     286     263     239     216     193     169     146     122     99

2,800  2,820  336     312     289     266     242     219     196     172     149     125     102

2,820  2,840  339     315     292     269     245     222     199     175     152     128     105

2,840  2,860  342     318     295     272     248     225     202     178     155     131     108

2,860  2,880  345     321     298     275     251     228     205     181     158     134     111

 

$2,880 and over       Use Table 2(b) for a MARRIED person on page 24. Also see the instructions on page 23.

 

Wage Bracket Method Tables for Income Tax Withholding

SINGLE Persons—SEMIMONTHLY Payroll Period

(For Wages Paid through December 31, 2017)

And the wages are– And the number of withholding allowances claimed is—

At least           But less than 0          1          2          3          4          5          6          7          8          9          10

The amount of income tax to be withheld is—

$ 0       $115   $0        $0        $0        $0        $0        $0        $0        $0        $0        $0        $0

115     120     2          0          0          0          0          0          0          0          0          0          0

120     125     3          0          0          0          0          0          0          0          0          0          0

125     130     3          0          0          0          0          0          0          0          0          0          0

130     135     4          0          0          0          0          0          0          0          0          0          0

135     140     4          0          0          0          0          0          0          0          0          0          0

140     145     5          0          0          0          0          0          0          0          0          0          0

145     150     5          0          0          0          0          0          0          0          0          0          0

150     155     6          0          0          0          0          0          0          0          0          0          0

155     160     6          0          0          0          0          0          0          0          0          0          0

160     165     7          0          0          0          0          0          0          0          0          0          0

165     170     7          0          0          0          0          0          0          0          0          0          0

170     175     8          0          0          0          0          0          0          0          0          0          0

175     180     8          0          0          0          0          0          0          0          0          0          0

180     185     9          0          0          0          0          0          0          0          0          0          0

185     190     9          0          0          0          0          0          0          0          0          0          0

190     195     10        0          0          0          0          0          0          0          0          0          0

195     200     10        0          0          0          0          0          0          0          0          0          0

200     205     11        0          0          0          0          0          0          0          0          0          0

205     210     11        0          0          0          0          0          0          0          0          0          0

210     215     12        0          0          0          0          0          0          0          0          0          0

215     220     12        0          0          0          0          0          0          0          0          0          0

220     225     13        0          0          0          0          0          0          0          0          0          0

225     230     13        0          0          0          0          0          0          0          0          0          0

230     235     14        0          0          0          0          0          0          0          0          0          0

235     240     14        0          0          0          0          0          0          0          0          0          0

240     245     15        0          0          0          0          0          0          0          0          0          0

245     250     15        0          0          0          0          0          0          0          0          0          0

250     260     16        0          0          0          0          0          0          0          0          0          0

260     270     17        0          0          0          0          0          0          0          0          0          0

270     280     18        1          0          0          0          0          0          0          0          0          0

280     290     19        2          0          0          0          0          0          0          0          0          0

290     300     20        3          0          0          0          0          0          0          0          0          0

300     310     21        4          0          0          0          0          0          0          0          0          0

310     320     22        5          0          0          0          0          0          0          0          0          0

320     330     23        6          0          0          0          0          0          0          0          0          0

330     340     24        7          0          0          0          0          0          0          0          0          0

340     350     25        8          0          0          0          0          0          0          0          0          0

350     360     26        9          0          0          0          0          0          0          0          0          0

360     370     27        10        0          0          0          0          0          0          0          0          0

370     380     28        11        0          0          0          0          0          0          0          0          0

380     390     29        12        0          0          0          0          0          0          0          0          0

390     400     30        13        0          0          0          0          0          0          0          0          0

400     410     31        14        0          0          0          0          0          0          0          0          0

410     420     32        15        0          0          0          0          0          0          0          0          0

420     430     33        16        0          0          0          0          0          0          0          0          0

430     440     34        17        0          0          0          0          0          0          0          0          0

440     450     35        18        1          0          0          0          0          0          0          0          0

450     460     36        19        2          0          0          0          0          0          0          0          0

460     470     37        20        3          0          0          0          0          0          0          0          0

470     480     38        21        4          0          0          0          0          0          0          0          0

480     490     39        22        5          0          0          0          0          0          0          0          0

490     500     40        23        6          0          0          0          0          0          0          0          0

500     520     43        25        8          0          0          0          0          0          0          0          0

520     540     46        27        10        0          0          0          0          0          0          0          0

540     560     49        29        12        0          0          0          0          0          0          0          0

560     580     52        31        14        0          0          0          0          0          0          0          0

580     600     55        33        16        0          0          0          0          0          0          0          0

600     620     58        35        18        1          0          0          0          0          0          0          0

620     640     61        37        20        3          0          0          0          0          0          0          0

640     660     64        39        22        5          0          0          0          0          0          0          0

660     680     67        41        24        7          0          0          0          0          0          0          0

680     700     70        44        26        9          0          0          0          0          0          0          0

700     720     73        47        28        11        0          0          0          0          0          0          0

720     740     76        50        30        13        0          0          0          0          0          0          0

740     760     79        53        32        15        0          0          0          0          0          0          0

760     780     82        56        34        17        0          0          0          0          0          0          0

780     800     85        59        36        19        2          0          0          0          0          0          0

$800   $820   $88     $62     $38     $21     $4        $0        $0        $0        $0        $0        $0

820     840     91        65        40        23        6          0          0          0          0          0          0

840     860     94        68        43        25        8          0          0          0          0          0          0

860     880     97        71        46        27        10        0          0          0          0          0          0

880     900     100     74        49        29        12        0          0          0          0          0          0

900     920     103     77        52        31        14        0          0          0          0          0          0

920     940     106     80        55        33        16        0          0          0          0          0          0

940     960     109     83        58        35        18        1          0          0          0          0          0

960     980     112     86        61        37        20        3          0          0          0          0          0

980     1,000  115     89        64        39        22        5          0          0          0          0          0

1,000  1,020  118     92        67        42        24        7          0          0          0          0          0

1,020  1,040  121     95        70        45        26        9          0          0          0          0          0

1,040  1,060  124     98        73        48        28        11        0          0          0          0          0

1,060  1,080  127     101     76        51        30        13        0          0          0          0          0

1,080  1,100  130     104     79        54        32        15        0          0          0          0          0

1,100  1,120  133     107     82        57        34        17        0          0          0          0          0

1,120  1,140  136     110     85        60        36        19        2          0          0          0          0

1,140  1,160  139     113     88        63        38        21        4          0          0          0          0

1,160  1,180  142     116     91        66        40        23        6          0          0          0          0

1,180  1,200  145     119     94        69        43        25        8          0          0          0          0

1,200  1,220  148     122     97        72        46        27        10        0          0          0          0

1,220  1,240  151     125     100     75        49        29        12        0          0          0          0

1,240  1,260  154     128     103     78        52        31        14        0          0          0          0

1,260  1,280  157     131     106     81        55        33        16        0          0          0          0

1,280  1,300  160     134     109     84        58        35        18        1          0          0          0

1,300  1,320  163     137     112     87        61        37        20        3          0          0          0

1,320  1,340  166     140     115     90        64        39        22        5          0          0          0

1,340  1,360  169     143     118     93        67        42        24        7          0          0          0

1,360  1,380  172     146     121     96        70        45        26        9          0          0          0

1,380  1,400  175     149     124     99        73        48        28        11        0          0          0

1,400  1,420  178     152     127     102     76        51        30        13        0          0          0

1,420  1,440  181     155     130     105     79        54        32        15        0          0          0

1,440  1,460  184     158     133     108     82        57        34        17        0          0          0

1,460  1,480  187     161     136     111     85        60        36        19        2          0          0

1,480  1,500  190     164     139     114     88        63        38        21        4          0          0

1,500  1,520  193     167     142     117     91        66        41        23        6          0          0

1,520  1,540  196     170     145     120     94        69        44        25        8          0          0

1,540  1,560  199     173     148     123     97        72        47        27        10        0          0

1,560  1,580  202     176     151     126     100     75        50        29        12        0          0

1,580  1,600  205     179     154     129     103     78        53        31        14        0          0

1,600  1,620  208     182     157     132     106     81        56        33        16        0          0

1,620  1,640  211     185     160     135     109     84        59        35        18        2          0

1,640  1,660  214     188     163     138     112     87        62        37        20        4          0

1,660  1,680  217     191     166     141     115     90        65        40        22        6          0

1,680  1,700  221     194     169     144     118     93        68        43        24        8          0

1,700  1,720  226     197     172     147     121     96        71        46        26        10        0

1,720  1,740  231     200     175     150     124     99        74        49        28        12        0

1,740  1,760  236     203     178     153     127     102     77        52        30        14        0

1,760  1,780  241     206     181     156     130     105     80        55        32        16        0

1,780  1,800  246     209     184     159     133     108     83        58        34        18        1

1,800  1,820  251     212     187     162     136     111     86        61        36        20        3

1,820  1,840  256     215     190     165     139     114     89        64        38        22        5

1,840  1,860  261     219     193     168     142     117     92        67        41        24        7

1,860  1,880  266     224     196     171     145     120     95        70        44        26        9

1,880  1,900  271     229     199     174     148     123     98        73        47        28        11

1,900  1,920  276     234     202     177     151     126     101     76        50        30        13

1,920  1,940  281     239     205     180     154     129     104     79        53        32        15

1,940  1,960  286     244     208     183     157     132     107     82        56        34        17

1,960  1,980  291     249     211     186     160     135     110     85        59        36        19

1,980  2,000  296     254     214     189     163     138     113     88        62        38        21

2,000  2,020  301     259     217     192     166     141     116     91        65        40        23

2,020  2,040  306     264     222     195     169     144     119     94        68        43        25

2,040  2,060  311     269     227     198     172     147     122     97        71        46        27

2,060  2,080  316     274     232     201     175     150     125     100     74        49        29

2,080  2,100  321     279     237     204     178     153     128     103     77        52        31

2,100  2,120  326     284     242     207     181     156     131     106     80        55        33

2,120  2,140  331     289     247     210     184     159     134     109     83        58        35

 

$2,140 and over       Use Table 3(a) for a SINGLE person on page 24. Also see the instructions on page 23.

 

Wage Bracket Method Tables for Income Tax Withholding

MARRIED Persons—SEMIMONTHLY Payroll Period

(For Wages Paid through December 31, 2017)

And the wages are– And the number of withholding allowances claimed is—

At least           But less than 0          1          2          3          4          5          6          7          8          9          10

The amount of income tax to be withheld is—

$ 0       $370   $0        $0        $0        $0        $0        $0        $0        $0        $0        $0        $0

370     380     1          0          0          0          0          0          0          0          0          0          0

380     390     2          0          0          0          0          0          0          0          0          0          0

390     400     3          0          0          0          0          0          0          0          0          0          0

400     410     4          0          0          0          0          0          0          0          0          0          0

410     420     5          0          0          0          0          0          0          0          0          0          0

420     430     6          0          0          0          0          0          0          0          0          0          0

430     440     7          0          0          0          0          0          0          0          0          0          0

440     450     8          0          0          0          0          0          0          0          0          0          0

450     460     9          0          0          0          0          0          0          0          0          0          0

460     470     10        0          0          0          0          0          0          0          0          0          0

470     480     11        0          0          0          0          0          0          0          0          0          0

480     490     12        0          0          0          0          0          0          0          0          0          0

490     500     13        0          0          0          0          0          0          0          0          0          0

500     520     15        0          0          0          0          0          0          0          0          0          0

520     540     17        0          0          0          0          0          0          0          0          0          0

540     560     19        2          0          0          0          0          0          0          0          0          0

560     580     21        4          0          0          0          0          0          0          0          0          0

580     600     23        6          0          0          0          0          0          0          0          0          0

600     620     25        8          0          0          0          0          0          0          0          0          0

620     640     27        10        0          0          0          0          0          0          0          0          0

640     660     29        12        0          0          0          0          0          0          0          0          0

660     680     31        14        0          0          0          0          0          0          0          0          0

680     700     33        16        0          0          0          0          0          0          0          0          0

700     720     35        18        1          0          0          0          0          0          0          0          0

720     740     37        20        3          0          0          0          0          0          0          0          0

740     760     39        22        5          0          0          0          0          0          0          0          0

760     780     41        24        7          0          0          0          0          0          0          0          0

780     800     43        26        9          0          0          0          0          0          0          0          0

800     820     45        28        11        0          0          0          0          0          0          0          0

820     840     47        30        13        0          0          0          0          0          0          0          0

840     860     49        32        15        0          0          0          0          0          0          0          0

860     880     51        34        17        0          0          0          0          0          0          0          0

880     900     53        36        19        2          0          0          0          0          0          0          0

900     920     55        38        21        4          0          0          0          0          0          0          0

920     940     57        40        23        6          0          0          0          0          0          0          0

940     960     59        42        25        8          0          0          0          0          0          0          0

960     980     61        44        27        10        0          0          0          0          0          0          0

980     1,000  63        46        29        12        0          0          0          0          0          0          0

1,000  1,020  65        48        31        14        0          0          0          0          0          0          0

1,020  1,040  67        50        33        16        0          0          0          0          0          0          0

1,040  1,060  69        52        35        18        1          0          0          0          0          0          0

1,060  1,080  71        54        37        20        3          0          0          0          0          0          0

1,080  1,100  73        56        39        22        5          0          0          0          0          0          0

1,100  1,120  75        58        41        24        7          0          0          0          0          0          0

1,120  1,140  77        60        43        26        9          0          0          0          0          0          0

1,140  1,160  80        62        45        28        11        0          0          0          0          0          0

1,160  1,180  83        64        47        30        13        0          0          0          0          0          0

1,180  1,200  86        66        49        32        15        0          0          0          0          0          0

1,200  1,220  89        68        51        34        17        1          0          0          0          0          0

1,220  1,240  92        70        53        36        19        3          0          0          0          0          0

1,240  1,260  95        72        55        38        21        5          0          0          0          0          0

1,260  1,280  98        74        57        40        23        7          0          0          0          0          0

1,280  1,300  101     76        59        42        25        9          0          0          0          0          0

1,300  1,320  104     78        61        44        27        11        0          0          0          0          0

1,320  1,340  107     81        63        46        29        13        0          0          0          0          0

1,340  1,360  110     84        65        48        31        15        0          0          0          0          0

1,360  1,380  113     87        67        50        33        17        0          0          0          0          0

1,380  1,400  116     90        69        52        35        19        2          0          0          0          0

1,400  1,420  119     93        71        54        37        21        4          0          0          0          0

1,420  1,440  122     96        73        56        39        23        6          0          0          0          0

1,440  1,460  125     99        75        58        41        25        8          0          0          0          0

1,460  1,480  128     102     77        60        43        27        10        0          0          0          0

1,480  1,500  131     105     80        62        45        29        12        0          0          0          0

1,500  1,520  134     108     83        64        47        31        14        0          0          0          0

1,520  1,540  137     111     86        66        49        33        16        0          0          0          0

1,540  1,560  140     114     89        68        51        35        18        1          0          0          0

1,560  1,580  143     117     92        70        53        37        20        3          0          0          0

1,580  1,600  146     120     95        72        55        39        22        5          0          0          0

$1,600            $1,620            $149   $123   $98     $74     $57     $41     $24     $7        $0        $0        $0

1,620  1,640  152     126     101     76        59        43        26        9          0          0          0

1,640  1,660  155     129     104     79        61        45        28        11        0          0          0

1,660  1,680  158     132     107     82        63        47        30        13        0          0          0

1,680  1,700  161     135     110     85        65        49        32        15        0          0          0

1,700  1,720  164     138     113     88        67        51        34        17        0          0          0

1,720  1,740  167     141     116     91        69        53        36        19        2          0          0

1,740  1,760  170     144     119     94        71        55        38        21        4          0          0

1,760  1,780  173     147     122     97        73        57        40        23        6          0          0

1,780  1,800  176     150     125     100     75        59        42        25        8          0          0

1,800  1,820  179     153     128     103     77        61        44        27        10        0          0

1,820  1,840  182     156     131     106     80        63        46        29        12        0          0

1,840  1,860  185     159     134     109     83        65        48        31        14        0          0

1,860  1,880  188     162     137     112     86        67        50        33        16        0          0

1,880  1,900  191     165     140     115     89        69        52        35        18        1          0

1,900  1,920  194     168     143     118     92        71        54        37        20        3          0

1,920  1,940  197     171     146     121     95        73        56        39        22        5          0

1,940  1,960  200     174     149     124     98        75        58        41        24        7          0

1,960  1,980  203     177     152     127     101     77        60        43        26        9          0

1,980  2,000  206     180     155     130     104     79        62        45        28        11        0

2,000  2,020  209     183     158     133     107     82        64        47        30        13        0

2,020  2,040  212     186     161     136     110     85        66        49        32        15        0

2,040  2,060  215     189     164     139     113     88        68        51        34        17        0

2,060  2,080  218     192     167     142     116     91        70        53        36        19        2

2,080  2,100  221     195     170     145     119     94        72        55        38        21        4

2,100  2,120  224     198     173     148     122     97        74        57        40        23        6

2,120  2,140  227     201     176     151     125     100     76        59        42        25        8

2,140  2,160  230     204     179     154     128     103     78        61        44        27        10

2,160  2,180  233     207     182     157     131     106     81        63        46        29        12

2,180  2,200  236     210     185     160     134     109     84        65        48        31        14

2,200  2,220  239     213     188     163     137     112     87        67        50        33        16

2,220  2,240  242     216     191     166     140     115     90        69        52        35        18

2,240  2,260  245     219     194     169     143     118     93        71        54        37        20

2,260  2,280  248     222     197     172     146     121     96        73        56        39        22

2,280  2,300  251     225     200     175     149     124     99        75        58        41        24

2,300  2,320  254     228     203     178     152     127     102     77        60        43        26

2,320  2,340  257     231     206     181     155     130     105     79        62        45        28

2,340  2,360  260     234     209     184     158     133     108     82        64        47        30

2,360  2,380  263     237     212     187     161     136     111     85        66        49        32

2,380  2,400  266     240     215     190     164     139     114     88        68        51        34

2,400  2,420  269     243     218     193     167     142     117     91        70        53        36

2,420  2,440  272     246     221     196     170     145     120     94        72        55        38

2,440  2,460  275     249     224     199     173     148     123     97        74        57        40

2,460  2,480  278     252     227     202     176     151     126     100     76        59        42

2,480  2,500  281     255     230     205     179     154     129     103     78        61        44

2,500  2,520  284     258     233     208     182     157     132     106     81        63        46

2,520  2,540  287     261     236     211     185     160     135     109     84        65        48

2,540  2,560  290     264     239     214     188     163     138     112     87        67        50

2,560  2,580  293     267     242     217     191     166     141     115     90        69        52

2,580  2,600  296     270     245     220     194     169     144     118     93        71        54

2,600  2,620  299     273     248     223     197     172     147     121     96        73        56

2,620  2,640  302     276     251     226     200     175     150     124     99        75        58

2,640  2,660  305     279     254     229     203     178     153     127     102     77        60

2,660  2,680  308     282     257     232     206     181     156     130     105     80        62

2,680  2,700  311     285     260     235     209     184     159     133     108     83        64

2,700  2,720  314     288     263     238     212     187     162     136     111     86        66

2,720  2,740  317     291     266     241     215     190     165     139     114     89        68

2,740  2,760  320     294     269     244     218     193     168     142     117     92        70

2,760  2,780  323     297     272     247     221     196     171     145     120     95        72

2,780  2,800  326     300     275     250     224     199     174     148     123     98        74

2,800  2,820  329     303     278     253     227     202     177     151     126     101     76

2,820  2,840  332     306     281     256     230     205     180     154     129     104     78

2,840  2,860  335     309     284     259     233     208     183     157     132     107     81

2,860  2,880  338     312     287     262     236     211     186     160     135     110     84

2,880  2,900  341     315     290     265     239     214     189     163     138     113     87

2,900  2,920  344     318     293     268     242     217     192     166     141     116     90

2,920  2,940  347     321     296     271     245     220     195     169     144     119     93

 

$2,940 and over       Use Table 3(b) for a MARRIED person on page 24. Also see the instructions on page 23.

 

Wage Bracket Method Tables for Income Tax Withholding

SINGLE Persons—MONTHLY Payroll Period

(For Wages Paid through December 31, 2017)

And the wages are– And the number of withholding allowances claimed is—

At least           But less than 0          1          2          3          4          5          6          7          8          9          10

The amount of income tax to be withheld is—

$ 0       $220   $0        $0        $0        $0        $0        $0        $0        $0        $0        $0        $0

220     230     3          0          0          0          0          0          0          0          0          0          0

230     240     4          0          0          0          0          0          0          0          0          0          0

240     250     5          0          0          0          0          0          0          0          0          0          0

250     260     6          0          0          0          0          0          0          0          0          0          0

260     270     7          0          0          0          0          0          0          0          0          0          0

270     280     8          0          0          0          0          0          0          0          0          0          0

280     290     9          0          0          0          0          0          0          0          0          0          0

290     300     10        0          0          0          0          0          0          0          0          0          0

300     320     12        0          0          0          0          0          0          0          0          0          0

320     340     14        0          0          0          0          0          0          0          0          0          0

340     360     16        0          0          0          0          0          0          0          0          0          0

360     380     18        0          0          0          0          0          0          0          0          0          0

380     400     20        0          0          0          0          0          0          0          0          0          0

400     420     22        0          0          0          0          0          0          0          0          0          0

420     440     24        0          0          0          0          0          0          0          0          0          0

440     460     26        0          0          0          0          0          0          0          0          0          0

460     480     28        0          0          0          0          0          0          0          0          0          0

480     500     30        0          0          0          0          0          0          0          0          0          0

500     520     32        0          0          0          0          0          0          0          0          0          0

520     540     34        0          0          0          0          0          0          0          0          0          0

540     560     36        2          0          0          0          0          0          0          0          0          0

560     580     38        4          0          0          0          0          0          0          0          0          0

580     600     40        6          0          0          0          0          0          0          0          0          0

600     640     43        9          0          0          0          0          0          0          0          0          0

640     680     47        13        0          0          0          0          0          0          0          0          0

680     720     51        17        0          0          0          0          0          0          0          0          0

720     760     55        21        0          0          0          0          0          0          0          0          0

760     800     59        25        0          0          0          0          0          0          0          0          0

800     840     63        29        0          0          0          0          0          0          0          0          0

840     880     67        33        0          0          0          0          0          0          0          0          0

880     920     71        37        3          0          0          0          0          0          0          0          0

920     960     75        41        7          0          0          0          0          0          0          0          0

960     1,000  79        45        11        0          0          0          0          0          0          0          0

1,000  1,040  85        49        15        0          0          0          0          0          0          0          0

1,040  1,080  91        53        19        0          0          0          0          0          0          0          0

1,080  1,120  97        57        23        0          0          0          0          0          0          0          0

1,120  1,160  103     61        27        0          0          0          0          0          0          0          0

1,160  1,200  109     65        31        0          0          0          0          0          0          0          0

1,200  1,240  115     69        35        2          0          0          0          0          0          0          0

1,240  1,280  121     73        39        6          0          0          0          0          0          0          0

1,280  1,320  127     77        43        10        0          0          0          0          0          0          0

1,320  1,360  133     83        47        14        0          0          0          0          0          0          0

1,360  1,400  139     89        51        18        0          0          0          0          0          0          0

1,400  1,440  145     95        55        22        0          0          0          0          0          0          0

1,440  1,480  151     101     59        26        0          0          0          0          0          0          0

1,480  1,520  157     107     63        30        0          0          0          0          0          0          0

1,520  1,560  163     113     67        34        0          0          0          0          0          0          0

1,560  1,600  169     119     71        38        4          0          0          0          0          0          0

1,600  1,640  175     125     75        42        8          0          0          0          0          0          0

1,640  1,680  181     131     80        46        12        0          0          0          0          0          0

1,680  1,720  187     137     86        50        16        0          0          0          0          0          0

1,720  1,760  193     143     92        54        20        0          0          0          0          0          0

1,760  1,800  199     149     98        58        24        0          0          0          0          0          0

1,800  1,840  205     155     104     62        28        0          0          0          0          0          0

1,840  1,880  211     161     110     66        32        0          0          0          0          0          0

1,880  1,920  217     167     116     70        36        2          0          0          0          0          0

1,920  1,960  223     173     122     74        40        6          0          0          0          0          0

1,960  2,000  229     179     128     78        44        10        0          0          0          0          0

2,000  2,040  235     185     134     84        48        14        0          0          0          0          0

2,040  2,080  241     191     140     90        52        18        0          0          0          0          0

2,080  2,120  247     197     146     96        56        22        0          0          0          0          0

2,120  2,160  253     203     152     102     60        26        0          0          0          0          0

2,160  2,200  259     209     158     108     64        30        0          0          0          0          0

2,200  2,240  265     215     164     114     68        34        0          0          0          0          0

2,240  2,280  271     221     170     120     72        38        4          0          0          0          0

2,280  2,320  277     227     176     126     76        42        8          0          0          0          0

2,320  2,360  283     233     182     132     81        46        12        0          0          0          0

2,360  2,400  289     239     188     138     87        50        16        0          0          0          0

$2,400            $2,440            $295   $245   $194   $144   $93     $54     $20     $0        $0        $0        $0

2,440  2,480  301     251     200     150     99        58        24        0          0          0          0

2,480  2,520  307     257     206     156     105     62        28        0          0          0          0

2,520  2,560  313     263     212     162     111     66        32        0          0          0          0

2,560  2,600  319     269     218     168     117     70        36        3          0          0          0

2,600  2,640  325     275     224     174     123     74        40        7          0          0          0

2,640  2,680  331     281     230     180     129     78        44        11        0          0          0

2,680  2,720  337     287     236     186     135     84        48        15        0          0          0

2,720  2,760  343     293     242     192     141     90        52        19        0          0          0

2,760  2,800  349     299     248     198     147     96        56        23        0          0          0

2,800  2,840  355     305     254     204     153     102     60        27        0          0          0

2,840  2,880  361     311     260     210     159     108     64        31        0          0          0

2,880  2,920  367     317     266     216     165     114     68        35        1          0          0

2,920  2,960  373     323     272     222     171     120     72        39        5          0          0

2,960  3,000  379     329     278     228     177     126     76        43        9          0          0

3,000  3,040  385     335     284     234     183     132     82        47        13        0          0

3,040  3,080  391     341     290     240     189     138     88        51        17        0          0

3,080  3,120  397     347     296     246     195     144     94        55        21        0          0

3,120  3,160  403     353     302     252     201     150     100     59        25        0          0

3,160  3,200  409     359     308     258     207     156     106     63        29        0          0

3,200  3,240  415     365     314     264     213     162     112     67        33        0          0

3,240  3,280  421     371     320     270     219     168     118     71        37        3          0

3,280  3,320  427     377     326     276     225     174     124     75        41        7          0

3,320  3,360  433     383     332     282     231     180     130     79        45        11        0

3,360  3,400  442     389     338     288     237     186     136     85        49        15        0

3,400  3,440  452     395     344     294     243     192     142     91        53        19        0

3,440  3,480  462     401     350     300     249     198     148     97        57        23        0

3,480  3,520  472     407     356     306     255     204     154     103     61        27        0

3,520  3,560  482     413     362     312     261     210     160     109     65        31        0

3,560  3,600  492     419     368     318     267     216     166     115     69        35        1

3,600  3,640  502     425     374     324     273     222     172     121     73        39        5

3,640  3,680  512     431     380     330     279     228     178     127     77        43        9

3,680  3,720  522     438     386     336     285     234     184     133     82        47        13

3,720  3,760  532     448     392     342     291     240     190     139     88        51        17

3,760  3,800  542     458     398     348     297     246     196     145     94        55        21

3,800  3,840  552     468     404     354     303     252     202     151     100     59        25

3,840  3,880  562     478     410     360     309     258     208     157     106     63        29

3,880  3,920  572     488     416     366     315     264     214     163     112     67        33

3,920  3,960  582     498     422     372     321     270     220     169     118     71        37

3,960  4,000  592     508     428     378     327     276     226     175     124     75        41

4,000  4,040  602     518     434     384     333     282     232     181     130     80        45

4,040  4,080  612     528     443     390     339     288     238     187     136     86        49

4,080  4,120  622     538     453     396     345     294     244     193     142     92        53

4,120  4,160  632     548     463     402     351     300     250     199     148     98        57

4,160  4,200  642     558     473     408     357     306     256     205     154     104     61

4,200  4,240  652     568     483     414     363     312     262     211     160     110     65

4,240  4,280  662     578     493     420     369     318     268     217     166     116     69

4,280  4,320  672     588     503     426     375     324     274     223     172     122     73

4,320  4,360  682     598     513     432     381     330     280     229     178     128     77

4,360  4,400  692     608     523     439     387     336     286     235     184     134     83

4,400  4,440  702     618     533     449     393     342     292     241     190     140     89

4,440  4,480  712     628     543     459     399     348     298     247     196     146     95

4,480  4,520  722     638     553     469     405     354     304     253     202     152     101

4,520  4,560  732     648     563     479     411     360     310     259     208     158     107

4,560  4,600  742     658     573     489     417     366     316     265     214     164     113

4,600  4,640  752     668     583     499     423     372     322     271     220     170     119

4,640  4,680  762     678     593     509     429     378     328     277     226     176     125

4,680  4,720  772     688     603     519     435     384     334     283     232     182     131

4,720  4,760  782     698     613     529     444     390     340     289     238     188     137

4,760  4,800  792     708     623     539     454     396     346     295     244     194     143

4,800  4,840  802     718     633     549     464     402     352     301     250     200     149

4,840  4,880  812     728     643     559     474     408     358     307     256     206     155

4,880  4,920  822     738     653     569     484     414     364     313     262     212     161

4,920  4,960  832     748     663     579     494     420     370     319     268     218     167

4,960  5,000  842     758     673     589     504     426     376     325     274     224     173

5,000  5,040  852     768     683     599     514     432     382     331     280     230     179

5,040  5,080  862     778     693     609     524     440     388     337     286     236     185

 

$5,080 and over       Use Table 4(a) for a SINGLE person on page 24. Also see the instructions on page 23.

 

Wage Bracket Method Tables for Income Tax Withholding

MARRIED Persons—MONTHLY Payroll Period

(For Wages Paid through December 31, 2017)

And the wages are– And the number of withholding allowances claimed is—

At least           But less than 0          1          2          3          4          5          6          7          8          9          10

The amount of income tax to be withheld is—

$ 0       $720   $0        $0        $0        $0        $0        $0        $0        $0        $0        $0        $0

720     760     2          0          0          0          0          0          0          0          0          0          0

760     800     6          0          0          0          0          0          0          0          0          0          0

800     840     10        0          0          0          0          0          0          0          0          0          0

840     880     14        0          0          0          0          0          0          0          0          0          0

880     920     18        0          0          0          0          0          0          0          0          0          0

920     960     22        0          0          0          0          0          0          0          0          0          0

960     1,000  26        0          0          0          0          0          0          0          0          0          0

1,000  1,040  30        0          0          0          0          0          0          0          0          0          0

1,040  1,080  34        0          0          0          0          0          0          0          0          0          0

1,080  1,120  38        4          0          0          0          0          0          0          0          0          0

1,120  1,160  42        8          0          0          0          0          0          0          0          0          0

1,160  1,200  46        12        0          0          0          0          0          0          0          0          0

1,200  1,240  50        16        0          0          0          0          0          0          0          0          0

1,240  1,280  54        20        0          0          0          0          0          0          0          0          0

1,280  1,320  58        24        0          0          0          0          0          0          0          0          0

1,320  1,360  62        28        0          0          0          0          0          0          0          0          0

1,360  1,400  66        32        0          0          0          0          0          0          0          0          0

1,400  1,440  70        36        2          0          0          0          0          0          0          0          0

1,440  1,480  74        40        6          0          0          0          0          0          0          0          0

1,480  1,520  78        44        10        0          0          0          0          0          0          0          0

1,520  1,560  82        48        14        0          0          0          0          0          0          0          0

1,560  1,600  86        52        18        0          0          0          0          0          0          0          0

1,600  1,640  90        56        22        0          0          0          0          0          0          0          0

1,640  1,680  94        60        26        0          0          0          0          0          0          0          0

1,680  1,720  98        64        30        0          0          0          0          0          0          0          0

1,720  1,760  102     68        34        1          0          0          0          0          0          0          0

1,760  1,800  106     72        38        5          0          0          0          0          0          0          0

1,800  1,840  110     76        42        9          0          0          0          0          0          0          0

1,840  1,880  114     80        46        13        0          0          0          0          0          0          0

1,880  1,920  118     84        50        17        0          0          0          0          0          0          0

1,920  1,960  122     88        54        21        0          0          0          0          0          0          0

1,960  2,000  126     92        58        25        0          0          0          0          0          0          0

2,000  2,040  130     96        62        29        0          0          0          0          0          0          0

2,040  2,080  134     100     66        33        0          0          0          0          0          0          0

2,080  2,120  138     104     70        37        3          0          0          0          0          0          0

2,120  2,160  142     108     74        41        7          0          0          0          0          0          0

2,160  2,200  146     112     78        45        11        0          0          0          0          0          0

2,200  2,240  150     116     82        49        15        0          0          0          0          0          0

2,240  2,280  154     120     86        53        19        0          0          0          0          0          0

2,280  2,320  159     124     90        57        23        0          0          0          0          0          0

2,320  2,360  165     128     94        61        27        0          0          0          0          0          0

2,360  2,400  171     132     98        65        31        0          0          0          0          0          0

2,400  2,440  177     136     102     69        35        1          0          0          0          0          0

2,440  2,480  183     140     106     73        39        5          0          0          0          0          0

2,480  2,520  189     144     110     77        43        9          0          0          0          0          0

2,520  2,560  195     148     114     81        47        13        0          0          0          0          0

2,560  2,600  201     152     118     85        51        17        0          0          0          0          0

2,600  2,640  207     157     122     89        55        21        0          0          0          0          0

2,640  2,680  213     163     126     93        59        25        0          0          0          0          0

2,680  2,720  219     169     130     97        63        29        0          0          0          0          0

2,720  2,760  225     175     134     101     67        33        0          0          0          0          0

2,760  2,800  231     181     138     105     71        37        3          0          0          0          0

2,800  2,840  237     187     142     109     75        41        7          0          0          0          0

2,840  2,880  243     193     146     113     79        45        11        0          0          0          0

2,880  2,920  249     199     150     117     83        49        15        0          0          0          0

2,920  2,960  255     205     154     121     87        53        19        0          0          0          0

2,960  3,000  261     211     160     125     91        57        23        0          0          0          0

3,000  3,040  267     217     166     129     95        61        27        0          0          0          0

3,040  3,080  273     223     172     133     99        65        31        0          0          0          0

3,080  3,120  279     229     178     137     103     69        35        2          0          0          0

3,120  3,160  285     235     184     141     107     73        39        6          0          0          0

3,160  3,200  291     241     190     145     111     77        43        10        0          0          0

3,200  3,240  297     247     196     149     115     81        47        14        0          0          0

3,240  3,280  303     253     202     153     119     85        51        18        0          0          0

3,280  3,320  309     259     208     157     123     89        55        22        0          0          0

3,320  3,360  315     265     214     163     127     93        59        26        0          0          0

3,360  3,400  321     271     220     169     131     97        63        30        0          0          0

$3,400            $3,440            $327   $277   $226   $175   $135   $101   $67     $34     $0        $0        $0

3,440  3,480  333     283     232     181     139     105     71        38        4          0          0

3,480  3,520  339     289     238     187     143     109     75        42        8          0          0

3,520  3,560  345     295     244     193     147     113     79        46        12        0          0

3,560  3,600  351     301     250     199     151     117     83        50        16        0          0

3,600  3,640  357     307     256     205     155     121     87        54        20        0          0

3,640  3,680  363     313     262     211     161     125     91        58        24        0          0

3,680  3,720  369     319     268     217     167     129     95        62        28        0          0

3,720  3,760  375     325     274     223     173     133     99        66        32        0          0

3,760  3,800  381     331     280     229     179     137     103     70        36        2          0

3,800  3,840  387     337     286     235     185     141     107     74        40        6          0

3,840  3,880  393     343     292     241     191     145     111     78        44        10        0

3,880  3,920  399     349     298     247     197     149     115     82        48        14        0

3,920  3,960  405     355     304     253     203     153     119     86        52        18        0

3,960  4,000  411     361     310     259     209     158     123     90        56        22        0

4,000  4,040  417     367     316     265     215     164     127     94        60        26        0

4,040  4,080  423     373     322     271     221     170     131     98        64        30        0

4,080  4,120  429     379     328     277     227     176     135     102     68        34        0

4,120  4,160  435     385     334     283     233     182     139     106     72        38        4

4,160  4,200  441     391     340     289     239     188     143     110     76        42        8

4,200  4,240  447     397     346     295     245     194     147     114     80        46        12

4,240  4,280  453     403     352     301     251     200     151     118     84        50        16

4,280  4,320  459     409     358     307     257     206     155     122     88        54        20

4,320  4,360  465     415     364     313     263     212     161     126     92        58        24

4,360  4,400  471     421     370     319     269     218     167     130     96        62        28

4,400  4,440  477     427     376     325     275     224     173     134     100     66        32

4,440  4,480  483     433     382     331     281     230     179     138     104     70        36

4,480  4,520  489     439     388     337     287     236     185     142     108     74        40

4,520  4,560  495     445     394     343     293     242     191     146     112     78        44

4,560  4,600  501     451     400     349     299     248     197     150     116     82        48

4,600  4,640  507     457     406     355     305     254     203     154     120     86        52

4,640  4,680  513     463     412     361     311     260     209     159     124     90        56

4,680  4,720  519     469     418     367     317     266     215     165     128     94        60

4,720  4,760  525     475     424     373     323     272     221     171     132     98        64

4,760  4,800  531     481     430     379     329     278     227     177     136     102     68

4,800  4,840  537     487     436     385     335     284     233     183     140     106     72

4,840  4,880  543     493     442     391     341     290     239     189     144     110     76

4,880  4,920  549     499     448     397     347     296     245     195     148     114     80

4,920  4,960  555     505     454     403     353     302     251     201     152     118     84

4,960  5,000  561     511     460     409     359     308     257     207     156     122     88

5,000  5,040  567     517     466     415     365     314     263     213     162     126     92

5,040  5,080  573     523     472     421     371     320     269     219     168     130     96

5,080  5,120  579     529     478     427     377     326     275     225     174     134     100

5,120  5,160  585     535     484     433     383     332     281     231     180     138     104

5,160  5,200  591     541     490     439     389     338     287     237     186     142     108

5,200  5,240  597     547     496     445     395     344     293     243     192     146     112

5,240  5,280  603     553     502     451     401     350     299     249     198     150     116

5,280  5,320  609     559     508     457     407     356     305     255     204     154     120

5,320  5,360  615     565     514     463     413     362     311     261     210     160     124

5,360  5,400  621     571     520     469     419     368     317     267     216     166     128

5,400  5,440  627     577     526     475     425     374     323     273     222     172     132

5,440  5,480  633     583     532     481     431     380     329     279     228     178     136

5,480  5,520  639     589     538     487     437     386     335     285     234     184     140

5,520  5,560  645     595     544     493     443     392     341     291     240     190     144

5,560  5,600  651     601     550     499     449     398     347     297     246     196     148

5,600  5,640  657     607     556     505     455     404     353     303     252     202     152

5,640  5,680  663     613     562     511     461     410     359     309     258     208     157

5,680  5,720  669     619     568     517     467     416     365     315     264     214     163

5,720  5,760  675     625     574     523     473     422     371     321     270     220     169

5,760  5,800  681     631     580     529     479     428     377     327     276     226     175

5,800  5,840  687     637     586     535     485     434     383     333     282     232     181

5,840  5,880  693     643     592     541     491     440     389     339     288     238     187

5,880  5,920  699     649     598     547     497     446     395     345     294     244     193

5,920  5,960  705     655     604     553     503     452     401     351     300     250     199

5,960  6,000  711     661     610     559     509     458     407     357     306     256     205

6,000  6,040  717     667     616     565     515     464     413     363     312     262     211

6,040  6,080  723     673     622     571     521     470     419     369     318     268     217

6,080  6,120  729     679     628     577     527     476     425     375     324     274     223

 

$6,120 and over       Use Table 4(b) for a MARRIED person on page 24. Also see the instructions on page 23.

 

Wage Bracket Method Tables for Income Tax Withholding

SINGLE Persons—DAILY Payroll Period

(For Wages Paid through December 31, 2017)

And the wages are– And the number of withholding allowances claimed is—

At least           But less than 0          1          2          3          4          5          6          7          8          9          10

The amount of income tax to be withheld is—

$ 0       $15     $0        $0        $0        $0        $0        $0        $0        $0        $0        $0        $0

15        18        1          0          0          0          0          0          0          0          0          0          0

18        21        1          0          0          0          0          0          0          0          0          0          0

21        24        1          0          0          0          0          0          0          0          0          0          0

24        27        2          0          0          0          0          0          0          0          0          0          0

27        30        2          0          0          0          0          0          0          0          0          0          0

30        33        2          1          0          0          0          0          0          0          0          0          0

33        36        3          1          0          0          0          0          0          0          0          0          0

36        39        3          1          0          0          0          0          0          0          0          0          0

39        42        3          2          0          0          0          0          0          0          0          0          0

42        45        3          2          0          0          0          0          0          0          0          0          0

45        48        4          2          1          0          0          0          0          0          0          0          0

48        51        4          3          1          0          0          0          0          0          0          0          0

51        54        5          3          1          0          0          0          0          0          0          0          0

54        57        5          3          2          0          0          0          0          0          0          0          0

57        60        6          3          2          0          0          0          0          0          0          0          0

60        63        6          4          2          1          0          0          0          0          0          0          0

63        66        7          4          2          1          0          0          0          0          0          0          0

66        69        7          5          3          1          0          0          0          0          0          0          0

69        72        7          5          3          1          0          0          0          0          0          0          0

72        75        8          6          3          2          0          0          0          0          0          0          0

75        78        8          6          4          2          1          0          0          0          0          0          0

78        81        9          6          4          2          1          0          0          0          0          0          0

81        84        9          7          5          3          1          0          0          0          0          0          0

84        87        10        7          5          3          1          0          0          0          0          0          0

87        90        10        8          5          3          2          0          0          0          0          0          0

90        93        11        8          6          4          2          0          0          0          0          0          0

93        96        11        9          6          4          2          1          0          0          0          0          0

96        99        12        9          7          4          3          1          0          0          0          0          0

99        102     12        10        7          5          3          1          0          0          0          0          0

102     105     12        10        8          5          3          2          0          0          0          0          0

105     108     13        11        8          6          4          2          0          0          0          0          0

108     111     13        11        9          6          4          2          1          0          0          0          0

111     114     14        11        9          7          4          3          1          0          0          0          0

114     117     14        12        10        7          5          3          1          0          0          0          0

117     120     15        12        10        8          5          3          2          0          0          0          0

120     123     15        13        10        8          6          3          2          0          0          0          0

123     126     16        13        11        9          6          4          2          1          0          0          0

126     129     16        14        11        9          7          4          3          1          0          0          0

129     132     16        14        12        9          7          5          3          1          0          0          0

132     135     17        15        12        10        8          5          3          2          0          0          0

135     138     17        15        13        10        8          6          3          2          0          0          0

138     141     18        15        13        11        8          6          4          2          1          0          0

141     144     18        16        14        11        9          7          4          2          1          0          0

144     147     19        16        14        12        9          7          5          3          1          0          0

147     150     19        17        14        12        10        7          5          3          2          0          0

150     153     20        17        15        13        10        8          6          3          2          0          0

153     156     20        18        15        13        11        8          6          4          2          1          0

156     159     21        18        16        13        11        9          6          4          2          1          0

159     162     22        19        16        14        12        9          7          5          3          1          0

162     165     22        19        17        14        12        10        7          5          3          1          0

165     168     23        20        17        15        13        10        8          5          3          2          0

168     171     24        20        18        15        13        11        8          6          4          2          0

171     174     25        21        18        16        13        11        9          6          4          2          1

174     177     25        21        19        16        14        12        9          7          5          3          1

177     180     26        22        19        17        14        12        10        7          5          3          1

180     183     27        23        19        17        15        12        10        8          5          3          2

183     186     28        24        20        18        15        13        11        8          6          4          2

186     189     28        24        20        18        16        13        11        9          6          4          2

189     192     29        25        21        18        16        14        11        9          7          4          3

192     195     30        26        22        19        17        14        12        10        7          5          3

195     198     31        27        23        19        17        15        12        10        8          5          3

198     201     31        27        23        20        17        15        13        10        8          6          3

201     204     32        28        24        20        18        16        13        11        9          6          4

204     207     33        29        25        21        18        16        14        11        9          7          4

207     210     34        30        26        22        19        16        14        12        9          7          5

210     213     34        30        26        23        19        17        15        12        10        8          5

213     216     35        31        27        23        20        17        15        13        10        8          6

216     219     36        32        28        24        20        18        15        13        11        8          6

219     222     37        33        29        25        21        18        16        14        11        9          7

222     225     37        33        29        26        22        19        16        14        12        9          7

$225   $228   $38     $34     $30     $26     $22     $19     $17     $14     $12     $10     $7

228     231     39        35        31        27        23        20        17        15        13        10        8

231     234     40        36        32        28        24        20        18        15        13        11        8

234     237     40        36        32        29        25        21        18        16        14        11        9

237     240     41        37        33        29        25        22        19        16        14        12        9

240     243     42        38        34        30        26        22        19        17        14        12        10

243     246     43        39        35        31        27        23        20        17        15        13        10

246     249     43        39        35        32        28        24        20        18        15        13        11

249     252     44        40        36        32        28        25        21        18        16        13        11

252     255     45        41        37        33        29        25        21        19        16        14        12

255     258     46        42        38        34        30        26        22        19        17        14        12

258     261     46        42        38        35        31        27        23        19        17        15        12

261     264     47        43        39        35        31        28        24        20        18        15        13

264     267     48        44        40        36        32        28        24        21        18        16        13

267     270     49        45        41        37        33        29        25        21        18        16        14

270     273     49        45        41        38        34        30        26        22        19        17        14

273     276     50        46        42        38        34        31        27        23        19        17        15

276     279     51        47        43        39        35        31        27        24        20        17        15

279     282     52        48        44        40        36        32        28        24        20        18        16

282     285     52        48        44        41        37        33        29        25        21        18        16

285     288     53        49        45        41        37        34        30        26        22        19        16

288     291     54        50        46        42        38        34        30        27        23        19        17

291     294     55        51        47        43        39        35        31        27        23        20        17

294     297     55        51        47        44        40        36        32        28        24        20        18

297     300     56        52        48        44        40        37        33        29        25        21        18

300     303     57        53        49        45        41        37        33        30        26        22        19

303     306     58        54        50        46        42        38        34        30        26        22        19

306     309     58        54        50        47        43        39        35        31        27        23        20

309     312     59        55        51        47        43        40        36        32        28        24        20

312     315     60        56        52        48        44        40        36        33        29        25        21

315     318     61        57        53        49        45        41        37        33        29        25        22

318     321     61        57        53        50        46        42        38        34        30        26        22

321     324     62        58        54        50        46        43        39        35        31        27        23

324     327     63        59        55        51        47        43        39        36        32        28        24

327     330     64        60        56        52        48        44        40        36        32        28        25

330     333     64        60        56        53        49        45        41        37        33        29        25

333     336     65        61        57        53        49        46        42        38        34        30        26

336     339     66        62        58        54        50        46        42        39        35        31        27

339     341     66        63        59        55        51        47        43        39        35        31        27

341     343     67        63        59        55        51        47        44        40        36        32        28

343     345     67        64        60        56        52        48        44        40        36        32        28

345     347     68        64        60        56        52        48        45        41        37        33        29

347     349     68        65        61        57        53        49        45        41        37        33        29

349     351     69        65        61        57        53        49        46        42        38        34        30

351     353     69        66        62        58        54        50        46        42        38        34        30

353     355     70        66        62        58        54        50        47        43        39        35        31

355     357     70        67        63        59        55        51        47        43        39        35        31

357     359     71        67        63        59        55        51        48        44        40        36        32

359     361     71        68        64        60        56        52        48        44        40        36        32

361     363     72        68        64        60        56        52        49        45        41        37        33

363     365     72        69        65        61        57        53        49        45        41        37        33

365     367     73        69        65        61        57        53        50        46        42        38        34

367     369     74        70        66        62        58        54        50        46        42        38        34

369     371     74        70        66        62        58        54        51        47        43        39        35

371     373     75        71        67        63        59        55        51        47        43        39        35

373     375     75        71        67        63        59        55        52        48        44        40        36

375     377     76        72        68        64        60        56        52        48        44        40        36

377     379     76        72        68        64        60        56        53        49        45        41        37

379     381     77        73        69        65        61        57        53        49        45        41        37

381     383     77        73        69        65        61        57        54        50        46        42        38

383     385     78        74        70        66        62        58        54        50        46        42        38

385     387     79        74        70        66        62        58        55        51        47        43        39

387     389     79        75        71        67        63        59        55        51        47        43        39

389     391     80        75        71        67        63        59        56        52        48        44        40

391     393     80        76        72        68        64        60        56        52        48        44        40

 

$393 and over           Use Table 8(a) for a SINGLE person on page 25. Also see the instructions on page 23.

 

Wage Bracket Method Tables for Income Tax Withholding

MARRIED Persons—DAILY Payroll Period

(For Wages Paid through December 31, 2017)

And the wages are– And the number of withholding allowances claimed is—

At least           But less than 0          1          2          3          4          5          6          7          8          9          10

The amount of income tax to be withheld is—

$ 0       $39     $0        $0        $0        $0        $0        $0        $0        $0        $0        $0        $0

39        42        1          0          0          0          0          0          0          0          0          0          0

42        45        1          0          0          0          0          0          0          0          0          0          0

45        48        1          0          0          0          0          0          0          0          0          0          0

48        51        2          0          0          0          0          0          0          0          0          0          0

51        54        2          0          0          0          0          0          0          0          0          0          0

54        57        2          1          0          0          0          0          0          0          0          0          0

57        60        3          1          0          0          0          0          0          0          0          0          0

60        63        3          1          0          0          0          0          0          0          0          0          0

63        66        3          2          0          0          0          0          0          0          0          0          0

66        69        3          2          0          0          0          0          0          0          0          0          0

69        72        4          2          1          0          0          0          0          0          0          0          0

72        75        4          2          1          0          0          0          0          0          0          0          0

75        78        4          3          1          0          0          0          0          0          0          0          0

78        81        5          3          2          0          0          0          0          0          0          0          0

81        84        5          3          2          0          0          0          0          0          0          0          0

84        87        5          4          2          1          0          0          0          0          0          0          0

87        90        6          4          2          1          0          0          0          0          0          0          0

90        93        6          4          3          1          0          0          0          0          0          0          0

93        96        6          5          3          1          0          0          0          0          0          0          0

96        99        6          5          3          2          0          0          0          0          0          0          0

99        102     7          5          4          2          0          0          0          0          0          0          0

102     105     7          5          4          2          1          0          0          0          0          0          0

105     108     7          6          4          3          1          0          0          0          0          0          0

108     111     8          6          5          3          1          0          0          0          0          0          0

111     114     8          6          5          3          2          0          0          0          0          0          0

114     117     9          7          5          4          2          0          0          0          0          0          0

117     120     9          7          5          4          2          1          0          0          0          0          0

120     123     10        7          6          4          3          1          0          0          0          0          0

123     126     10        8          6          4          3          1          0          0          0          0          0

126     129     11        8          6          5          3          2          0          0          0          0          0

129     132     11        9          7          5          3          2          0          0          0          0          0

132     135     11        9          7          5          4          2          1          0          0          0          0

135     138     12        10        7          6          4          3          1          0          0          0          0

138     141     12        10        8          6          4          3          1          0          0          0          0

141     144     13        10        8          6          5          3          2          0          0          0          0

144     147     13        11        9          7          5          3          2          0          0          0          0

147     150     14        11        9          7          5          4          2          1          0          0          0

150     153     14        12        9          7          6          4          2          1          0          0          0

153     156     15        12        10        8          6          4          3          1          0          0          0

156     159     15        13        10        8          6          5          3          2          0          0          0

159     162     15        13        11        8          6          5          3          2          0          0          0

162     165     16        14        11        9          7          5          4          2          1          0          0

165     168     16        14        12        9          7          6          4          2          1          0          0

168     171     17        15        12        10        8          6          4          3          1          0          0

171     174     17        15        13        10        8          6          5          3          1          0          0

174     177     18        15        13        11        8          6          5          3          2          0          0

177     180     18        16        14        11        9          7          5          4          2          1          0

180     183     19        16        14        12        9          7          5          4          2          1          0

183     186     19        17        14        12        10        7          6          4          3          1          0

186     189     20        17        15        13        10        8          6          5          3          1          0

189     192     20        18        15        13        11        8          6          5          3          2          0

192     195     20        18        16        13        11        9          7          5          4          2          0

195     198     21        19        16        14        12        9          7          5          4          2          1

198     201     21        19        17        14        12        10        7          6          4          3          1

201     204     22        19        17        15        12        10        8          6          4          3          1

204     207     22        20        18        15        13        11        8          6          5          3          2

207     210     23        20        18        16        13        11        9          7          5          4          2

210     213     23        21        18        16        14        11        9          7          5          4          2

213     216     24        21        19        17        14        12        10        7          6          4          3

216     219     24        22        19        17        15        12        10        8          6          4          3

219     222     24        22        20        17        15        13        10        8          6          5          3

222     225     25        23        20        18        16        13        11        9          7          5          3

225     228     25        23        21        18        16        14        11        9          7          5          4

228     231     26        24        21        19        17        14        12        9          7          6          4

231     234     26        24        22        19        17        15        12        10        8          6          4

234     237     27        24        22        20        17        15        13        10        8          6          5

237     240     27        25        23        20        18        16        13        11        9          7          5

240     243     28        25        23        21        18        16        14        11        9          7          5

243     246     28        26        23        21        19        16        14        12        9          7          6

246     249     29        26        24        22        19        17        15        12        10        8          6

$249   $252   $29     $27     $24     $22     $20     $17     $15     $13     $10     $8        $6

252     255     29        27        25        22        20        18        15        13        11        8          6

255     258     30        28        25        23        21        18        16        14        11        9          7

258     261     30        28        26        23        21        19        16        14        12        9          7

261     264     31        28        26        24        21        19        17        14        12        10        7

264     267     31        29        27        24        22        20        17        15        13        10        8

267     270     32        29        27        25        22        20        18        15        13        11        8

270     273     32        30        27        25        23        20        18        16        13        11        9

273     276     33        30        28        26        23        21        19        16        14        12        9

276     279     33        31        28        26        24        21        19        17        14        12        10

279     282     33        31        29        26        24        22        19        17        15        12        10

282     285     34        32        29        27        25        22        20        18        15        13        11

285     288     34        32        30        27        25        23        20        18        16        13        11

288     291     35        33        30        28        26        23        21        18        16        14        11

291     294     35        33        31        28        26        24        21        19        17        14        12

294     297     36        33        31        29        26        24        22        19        17        15        12

297     300     36        34        32        29        27        25        22        20        18        15        13

300     303     37        34        32        30        27        25        23        20        18        16        13

303     306     37        35        32        30        28        25        23        21        18        16        14

306     309     38        35        33        31        28        26        24        21        19        17        14

309     312     38        36        33        31        29        26        24        22        19        17        15

312     315     38        36        34        31        29        27        24        22        20        17        15

315     318     39        37        34        32        30        27        25        23        20        18        16

318     321     39        37        35        32        30        28        25        23        21        18        16

321     324     40        37        35        33        30        28        26        23        21        19        16

324     327     40        38        36        33        31        29        26        24        22        19        17

327     330     41        38        36        34        31        29        27        24        22        20        17

330     333     42        39        36        34        32        29        27        25        22        20        18

333     336     43        39        37        35        32        30        28        25        23        21        18

336     339     43        40        37        35        33        30        28        26        23        21        19

339     341     44        40        38        35        33        31        28        26        24        21        19

341     343     44        41        38        36        33        31        29        26        24        22        19

343     345     45        41        38        36        34        31        29        27        24        22        20

345     347     45        42        39        36        34        32        29        27        25        22        20

347     349     46        42        39        37        34        32        30        27        25        23        20

349     351     46        43        39        37        35        32        30        28        25        23        21

351     353     47        43        40        37        35        33        30        28        26        23        21

353     355     47        44        40        38        35        33        31        28        26        23        21

355     357     48        44        40        38        35        33        31        28        26        24        21

357     359     48        45        41        38        36        33        31        29        26        24        22

359     361     49        45        41        38        36        34        31        29        27        24        22

361     363     49        46        42        39        36        34        32        29        27        25        22

363     365     50        46        42        39        37        34        32        30        27        25        23

365     367     50        47        43        39        37        35        32        30        28        25        23

367     369     51        47        43        40        37        35        33        30        28        26        23

369     371     51        48        44        40        38        35        33        31        28        26        24

371     373     52        48        44        40        38        36        33        31        29        26        24

373     375     52        49        45        41        38        36        34        31        29        26        24

375     377     53        49        45        41        38        36        34        31        29        27        24

377     379     53        50        46        42        39        36        34        32        29        27        25

379     381     54        50        46        42        39        37        34        32        30        27        25

381     383     54        51        47        43        39        37        35        32        30        28        25

383     385     55        51        47        43        40        37        35        33        30        28        26

385     387     55        52        48        44        40        38        35        33        31        28        26

387     389     56        52        48        44        40        38        36        33        31        29        26

389     391     56        53        49        45        41        38        36        34        31        29        27

391     393     57        53        49        45        41        39        36        34        32        29        27

393     395     57        54        50        46        42        39        37        34        32        29        27

395     397     58        54        50        46        42        39        37        34        32        30        27

397     399     58        55        51        47        43        39        37        35        32        30        28

399     401     59        55        51        47        43        40        37        35        33        30        28

401     403     59        56        52        48        44        40        38        35        33        31        28

403     405     60        56        52        48        44        40        38        36        33        31        29

405     407     60        57        53        49        45        41        38        36        34        31        29

407     409     61        57        53        49        45        41        39        36        34        32        29

 

$409 and over           Use Table 8(b) for a MARRIED person on page 25. Also see the instructions on page 23.

If you’re filing your tax return or paying your federal taxes electronically, a valid EIN is required. If a valid EIN isn’t provided, the return or payment won’t be processed. This may result in penalties and delays in processing your return or payment.

Electronic funds withdrawal (EFW). If you file your employment tax return electronically, you can e-file and e-pay (electronic funds withdrawal) the balance due in a single step using tax preparation software or through a tax professional. However, don’t use EFW to make federal tax deposits. For more information on paying your taxes using EFW, visit the IRS website at IRS.gov/payments. A fee may be charged to file electronically.

Credit or debit card payments. You can pay the balance due shown on your employment tax return by credit or debit card. Don’t use a credit or debit card to make federal tax deposits. For more information on paying your taxes with a credit or debit card, visit the IRS website at IRS.gov/payments.

Online payment agreement. You may be eligible to apply for an installment agreement online if you have a balance due when you file your employment tax return. For more information, see the instructions for your employment tax return or visit the IRS website at IRS.gov/opa.

When you hire a new employee. Ask each new employee to complete the 2017 Form W-4, or its Spanish version, Formulario W-4(SP). Also, ask the employee to show you his or her social security card so that you can record the employee’s name and social security number (SSN) accurately. If the employee has lost the card or recently changed names, have the employee apply for a duplicate or corrected card. If the employee doesn’t have a card, have the employee apply for one on Form SS-5, Application for a Social Security Card. See section 1 for more information.

Eligibility for employment. You must verify that each new employee is legally eligible to work in the United States. This includes completing the U.S. Citizenship and Immigration Services (USCIS) Form I-9, Employment Eligibility Verification. You can get Form I-9 at uscis.gov/forms, USCIS offices, or by calling 1-800-870-3676. For more information, visit the USCIS website at uscis.gov/i-9-central or call 1-800-375-5283 or 1-800-767-1833 (TDD).

New hire reporting. You’re required to report any new employee to a designated state new-hire registry. A new employee is an employee who hasn’t previously been employed by you or was previously employed by you but has been separated from such prior employment for at least 60 consecutive days. Many states accept a copy of Form W-4 with employer information added. Visit the Office of Child Support Enforcement’s website at acf.hhs.gov/css/employers for more information.

Dishonored payments. Any form of payment that is dishonored and returned from a financial institution is subject to a penalty. The penalty is $25 or 2% of the payment, whichever is more. However, the penalty on dishonored payments of $24.99 or less is an amount equal to the payment. For example, a dishonored payment of $18 is charged a penalty of $18.

Forms in Spanish. You can provide Formulario W-4(SP) in place of Form W-4 to your Spanish-speaking employees. For more information, see Pub. 17(SP), El Impuesto Federal sobre los Ingresos (Para Personas Físicas).For nonemployees, Formulario W-9(SP), Solicitud y Certificación del Número de Identificación del Contribuyente, may be used in place of Form W-9, Request for Taxpayer Identification Number and Certification.References in this publication to Form W-4 or Form W-9 also apply to their equivalent Spanish translations—Formulario W-4(SP) or Formulario W-9(SP).

Information returns. You may be required to file information returns to report certain types of payments made during the year. For example, you must file Form 1099-MISC, Miscellaneous Income, to report payments of $600 or more to persons not treated as employees (for example, independent contractors) for services performed for your trade or business. For details about filing Forms 1099 and for information about required electronic filing, see the General Instructions for Certain Information Returns for general information and the separate, specific instructions for each information return that you file (for example, Instructions for Form 1099-MISC). Generally, don’t use Forms 1099 to report wages or other compensation that you paid to employees; report these amounts on Form W-2.See the General Instructions for Forms W-2 and W-3 for details about filing Forms W-2 and for information about required electronic filing. If you file 250 or more Forms W-2, you must file them electronically. The IRS and the Social Security Administration (SSA) won’t accept information returns on magnetic media.

Information reporting customer service site. The IRS operates an information return customer service site to answer questions about reporting on Forms W-2, W-3, 1099, and other information returns. If you have questions related to reporting on information returns, you may call 1-866-455-7438 (toll free), 304-263-8700 (toll call), or 304-579-4827 (TDD/TTY for persons who are deaf, hard of hearing, or have a speech disability). The call site can also be reached by email at mccirp@irs.gov. Don’t include tax identification numbers (TINs) or attachments in email correspondence because electronic mail isn’t secure.

Web-based application for an employer identification number (EIN). Visit the IRS website at IRS.gov/ein to apply for an EIN online. See section 1 for additional information.

When a crew leader furnishes workers to you. Record the crew leader’s name, address, and EIN. See sections 2and 10.

Change of address. Use Form 8822-B to notify the IRS of an address change. Don’t mail Form 8822-B with your employment tax return.

Change of responsible party. Any entity with an EIN must file Form 8822-B to report a change to its responsible party. Form 8822-B must be filed within 60 days of the change. For a definition of “responsible party,” see the Form 8822-B instructions.

Ordering forms and publications. Visit IRS.gov/forms to download forms and publications. Otherwise, you can go to IRS.gov/orderforms to order current- and prior-year forms and instructions. Your order should arrive within 10 business days. Instead of ordering paper Forms W-2 and W-3, consider filing them electronically using the SSA’s free e-file service. Visit the SSA’s Employer W-2 Filing Instructions & Information website at socialsecurity.gov/employer to register for Business Services Online. You will be able to create and file “fill-in” versions of Forms W-2 with the SSA and can print out completed copies of Forms W-2 for filing with state and local governments, distribution to your employees, and for your records. Form W-3 will be created for you based on your Forms W-2.

Tax questions. If you have an employment tax question, check the information available on IRS.gov or call 1-800-829-4933 or 1-800-829-4059 (TDD/TTY for persons who are deaf, hard of hearing, or have a speech disability) Monday–Friday from 7:00 a.m. to 7:00 p.m. local time (Alaska and Hawaii follow Pacific time).

Recordkeeping. Keep all records of employment taxes for at least 4 years. These should be available for IRS review. Your records should include the following information.

• Your EIN.
• Amounts and dates of all wage, annuity, and pension payments.
• Names, addresses, SSNs, and occupations of employees and recipients.
• Any employee copies of Forms W-2 and W-2c returned to you as undeliverable.
• Dates of employment for each employee.
• Periods for which employees and recipients were paid while absent due to sickness or injury and the amount and weekly rate of payments you or third-party payers made to them.
• Copies of employees’ and recipients’ income tax withholding allowance certificates (Forms W-4, W-4(SP), W-4P, and W-4S).
• Dates and amounts of tax deposits you made and acknowledgment numbers for deposits made by EFTPS.
• Copies of returns filed and confirmation numbers.
• Records of fringe benefits and expense reimbursements provided to your employees, including substantiation.

If a crew leader furnished you with farmworkers, you must keep a record of the name, permanent mailing address, and EIN of the crew leader. If the crew leader has no permanent mailing address, record his or her present address.

Private delivery services. You can use certain private delivery services designated by the IRS to send tax returns and payments. The list includes only the following.

• DHL Express: DHL Express 9:00, DHL Express 10:30, DHL Express 12:00, DHL Express Worldwide, DHL Express Envelope, DHL Import Express 10:30, DHL Import Express 12:00, and DHL Import Express Worldwide.
• Federal Express (FedEx): FedEx First Overnight, FedEx Priority Overnight, FedEx Standard Overnight, FedEx 2 Day, FedEx International Next Flight Out, FedEx International Priority, FedEx International First, and FedEx International Economy.
• United Parcel Service (UPS): UPS Next Day Air Early AM, UPS Next Day Air, UPS Next Day Air Saver, UPS 2nd Day Air, UPS 2nd Day Air A.M., UPS Worldwide Express Plus, and UPS Worldwide Express.

For the IRS mailing address to use if you’re using a private delivery service, go to IRS.gov and enter “private delivery service” in the search box.Your private delivery service can tell you how to get written proof of the mailing date.

Private delivery services can’t deliver items to P.O. boxes. You must use the U.S. Postal Service to mail any item to an IRS P.O. box address.

Zero Wage return. If you haven’t filed a “final” Form 940, Employer’s Annual Federal Unemployment (FUTA) Tax Return, or Form 943, you must continue to file Forms 940 and 943 even for years during which you paid no wages. The IRS encourages you to file your “Zero Wage” Forms 940 and 943 electronically. Visit the IRS website at IRS.gov/employmentefile for more information on electronic filing.

Pub. 5146 explains employment tax examinations and appeal rights. Pub. 5146 provides employers with information on how the IRS selects employment tax returns to be examined, what happens during an exam, and what options an employer has in responding to the results of an exam, including how to appeal the results. Pub. 5146 also includes information on worker classification issues and tip exams.

Photographs of missing children. The IRS is a proud partner with the National Center for Missing & Exploited Children® (NCMEC). Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child.

Calendar

The following are important dates and responsibilities. See section 7 for information about depositing taxes reported on Forms 943 and 945. See section 10 for information about depositing FUTA tax. Also see Pub. 509, Tax Calendars.

If any date shown below for filing a return, furnishing a form, or depositing taxes falls on a Saturday, Sunday, or legal holiday, the due date is the next business day. A statewide legal holiday delays a filing due date only if the IRS office where you’re required to file is located in that state. However, a statewide legal holiday doesn’t delay the due date of federal tax deposits. See Deposits Due on Business Days Only in section 7. For any filing due date, you will meet the “file” or “furnish” requirement if the envelope containing the return or form is properly addressed, contains sufficient postage, and is postmarked by the U.S. Postal Service on or before the due date, or sent by an IRS-designated delivery service on or before the due date. See Private delivery services under Reminders for more information.

By January 31 .

• File Form 943. See section 8 for more information on Form 943. If you deposited all Form 943 taxes when due, you may file Form 943 by February 10.
• File Form 940. See section 10 for more information on FUTA. If you deposited all the FUTA tax when due, you may file Form 940 by February 10.
• File with the SSA Copy A of all 2016 paper and electronic Forms W-2 with Form W-3, Transmittal of Wage and Tax Statements. For more information on reporting Form W-2 information to the SSA electronically, visit the SSA’s Employer W-2 Filing Instructions & Information webpage at socialsecurity.gov/employer. If filing electronically, the SSA will generate Form W-3 data from the electronic submission of Form(s) W-2.
• Furnish each employee with a completed Form W-2.
• File with the IRS Copy A of all 2016 paper and electronic Forms 1099-MISC that report nonemployee compensation, with Form 1096, Annual Summary and Transmittal of U.S. Information Returns. For information on filing information returns electronically with the IRS, see Pub. 1220.
• Furnish each recipient to whom you paid $600 or more in nonemployee compensation with a completed Form 1099-MISC.
• File Form 945, Annual Return of Withheld Federal Income Tax, to report any nonpayroll federal income tax withheld in 2016. If you deposited all Form 945 taxes when due, you may file Form 945 by February 10.

By February 15. Ask for a new Form W-4 or Formulario W-4(SP) from each employee who claimed exemption from federal income tax withholding last year.

On February 16. Any Form W-4 claiming exemption from withholding for the previous year has now expired. Begin withholding for any employee who previously claimed exemption from withholding but hasn’t given you a new Form W-4 for the current year. If the employee doesn’t give you a new Form W-4, withhold tax based on the last valid Form W-4 you have for the employee that doesn’t claim exemption from withholding or, if one doesn’t exist, as if he or she is single with zero withholding allowances. See section 5 for more information. If the employee furnishes a new Form W-4 claiming exemption from withholding after February 15, you may apply the exemption to future wages, but don’t refund taxes withheld while the exempt status wasn’t in place.

By April 30, July 31, October 31, and January 31. Deposit FUTA taxes. Deposit FUTA tax if the undeposited amount is over $500.

Before December 1. Remind employees to submit a new Form W-4 if their marital status or withholding allowances have changed or will change for the next year.

Introduction

This publication is for employers of agricultural workers (farmworkers). It contains information that you may need to comply with the laws for agricultural labor (farmwork) relating to social security and Medicare taxes, FUTA tax, and withheld federal income tax (employment taxes). Agricultural employers report social security and Medicare taxes and withheld federal income tax on Form 943 and report FUTA tax on Form 940.

When you pay your employees, you don’t pay them all the money they earned. As their employer, you have the added responsibility of withholding taxes from their paychecks. The federal income tax and employees’ share of social security and Medicare taxes that you withhold from your employees’ paychecks are part of their wages that you pay to the United States Treasury instead of to your employees. Your employees trust that you pay the withheld taxes to the United States Treasury by making federal tax deposits. This is the reason that these withheld taxes are called trust fund taxes. If federal income, social security, or Medicare taxes that must be withheld aren’t withheld or aren’t deposited or paid to the United States Treasury, the trust fund recovery penalty may apply. See section 7 for more information.

If you have nonfarm employees, see Pub. 15. If you have employees in the U.S. Virgin Islands, Guam, American Samoa, or the Commonwealth of the Northern Mariana Islands, see Pub. 80. Pub. 15-A contains more employment-related information, including information about sick pay and pension income. Pub. 15-B contains information about the employment tax treatment and valuation of various types of noncash compensation.

Comments and suggestions.

We welcome your comments about this publication and your suggestions for future editions.

You can send us comments from IRS.gov/formcomment.

Or you can write to:

Internal Revenue Service
Tax Forms and Publications
1111 Constitution Ave. NW, IR-6526
Washington, DC 20224

We respond to many letters by telephone. Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence.

Although we can’t respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax forms, instructions, and publications. We can’t answer tax questions sent to the above address.

 

COBRA premium assistance credit.

The Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) provides certain former employees, retirees, spouses, former spouses, and dependent children the right to temporary continuation of health coverage at group rates. COBRA generally covers multiemployer health plans and health plans maintained by private-sector employers (other than churches) with 20 or more full- and part-time employees. Parallel requirements apply to these plans under the Employee Retirement Income Security Act of 1974 (ERISA). Under the Public Health Service Act, COBRA requirements apply also to health plans covering state or local government employees. Similar requirements apply under the Federal Employees Health Benefits Program and under some state laws. For the premium assistance (or subsidy) discussed below, these requirements are all referred to as COBRA requirements.

Under the American Recovery and Reinvestment Act of 2009 (ARRA), employers are allowed a credit against “payroll taxes” (referred to in this publication as “employment taxes”) for providing COBRA premium assistance to assistance-eligible individuals. For periods of COBRA continuation coverage beginning after February 16, 2009, a group health plan must treat an assistance-eligible individual as having paid the required COBRA continuation coverage premium if the individual elects COBRA coverage and pays 35% of the amount of the premium.

An assistance-eligible individual is a qualified beneficiary of an employer’s group health plan who is eligible for COBRA continuation coverage during the period beginning September 1, 2008, and ending May 31, 2010, due to the involuntary termination from employment of a covered employee during the period and elects continuation COBRA coverage. The assistance for the coverage can last up to 15 months.

The COBRA premium assistance credit was available to an employer for premiums paid on behalf of employees who were involuntarily terminated from employment between September 1, 2008, and May 31, 2010. The COBRA premium assistance credit isn’t available for individuals who were involuntarily terminated after May 31, 2010. Therefore, only in rare circumstances will the credit still be available, such as instances where COBRA eligibility was delayed as a result of employer-provided health insurance coverage following termination. For more information about the credit, see Notice 2009-27, 2009-16 I.R.B. 838, available at IRS.gov/irb/2009-16_irb/ar09.html.

Administrators of the group health plans (or other entities) that provide or administer COBRA continuation coverage must provide notice to assistance-eligible individuals of the COBRA premium assistance.

The 65% of the premium not paid by the assistance-eligible individual is reimbursed to the employer maintaining the group health plan. The reimbursement is made through a credit against the employer’s employment tax liabilities. For information on how to claim the credit, see the Instructions for Form 943-X. The credit is treated as a deposit made on the first day of the return period. In the case of a multiemployer plan, the credit is claimed by the plan, rather than the employer. In the case of an insured plan subject to state law continuation coverage requirements, the credit is claimed by the insurance company, rather than the employer.

Anyone claiming the credit for COBRA premium assistance payments must maintain the following information to support their claim.

• Information on the receipt of the assistance-eligible individuals’ 35% share of the premium, including dates and amounts.
• In the case of an insurance plan, a copy of an invoice or other supporting statement from the insurance carrier and proof of timely payment of the full premium to the insurance carrier required under COBRA.
• In the case of a self-insured plan, proof of the premium amount and proof of the coverage provided to the assistance-eligible individuals.
• Attestation of involuntary termination, including the date of the involuntary termination for each covered employee whose involuntary termination is the basis for eligibility for the subsidy.
• Proof of each assistance-eligible individual’s eligibility for COBRA coverage and the election of COBRA coverage.
• A record of the SSNs of all covered employees, the amount of the subsidy reimbursed with respect to each covered employee, and whether the subsidy was for one individual or two or more individuals.

For more information, visit IRS.gov and enter “COBRA” in the search box.

Useful Items – You may want to see:

Publication

• 15 Employer’s Tax Guide
• 15-A Employer’s Supplemental Tax Guide
• 15-B Employer’s Tax Guide to Fringe Benefits
• 225 Farmer’s Tax Guide
• 535 Business Expenses
• 583 Starting a Business and Keeping Records
• 1635 Employer Identification Number: Understanding Your EIN