2007 Payroll Tax Information - Effective 7/1/2007
(The new guidelines on Federal Income Tax withholding,
Social Security, and Medicare are effective for wages PAID on and after
January 1, 2007. The Medical Aid guidelines are effective for hours WORKED
on and after July 1, 2007.)
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| A. FEDERAL INCOME TAX WITHHOLDING
| 1. Calculate the taxable gross: |
| Gross Pay minus Reductions |
PERS, UWRP,
TRS, LEOFF,
FSA,
VIP,
State Def
Comp,
Pre-Tax Med Ins/Dep Care,
Pre-Tax Parking |
= |
Taxable Gross |
| 2. Calculate the Federal Withholding Allowance (amount per
IRS) |
| $141.67 |
X |
number of allowances claimed |
| 3. Calculate the Taxable Income: |
| Taxable Gross minus Federal
Withholding Allowance |
= |
Taxable Income |
| 4. Using Taxable Income, calculate
Federal Income Tax Withholding using TABLE 3 below: |
| (from Publication 15,
"Circular E, Employer's Tax Guide") |
|
| 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 $110 |
$0 |
Not over $333 |
$0 |
| Over |
But not over |
of excess over |
Over |
But not over |
of excess over |
| $110 |
$422 |
10% |
$110 |
$333 |
$973 |
10% |
$333 |
| $422 |
$1,397 |
$31.20 |
plus |
15% |
$422 |
$973 |
$2,946 |
$64.00 |
plus |
15% |
$973 |
| $1,397 |
$3,211 |
$177.45 |
plus |
25% |
$1,397 |
$2,946 |
$5,575 |
$359.95 |
plus |
25% |
$2,946 |
| $3,211 |
$6,783 |
$630.95 |
plus |
28% |
$3,211 |
$5,575 |
$8,465 |
$1017.20 |
plus |
28% |
$5,575 |
| $6,783 |
$14,652 |
$1,631.11 |
plus |
33% |
$6,783 |
$8,465 |
$14,875 |
$1,826.40 |
plus |
33% |
$8,465 |
| $14,652 |
$4,227.88 |
plus |
35% |
$14,652 |
$14,875 |
$3,941.70 |
plus |
35% |
$14,875 |
|
| B. SOCIAL SECURITY/MEDICARE
Taxable Gross = Gross Pay minus Pretax Med Ins, Dep. Care,
Pre-Tax Parking, FSA
| Social Security |
6.2% |
X |
Taxable Gross up to $97,500 (Max. Tax
$6,045.00) |
| Medicare |
1.45% |
X |
all taxable gross |
|
| C. MEDICAL AID (Worker's Compensation) for hours
worked on or after July 1st
| 0.0334 |
X |
hours worked (maximum 80 hours) |
| The maximum deduction is: |
| 0.0334 |
X |
80 hours |
= |
$2.67 per pay period |
| Employer Contribution: 0.1114 X hours= up to a
maximum
of $8.91 |
|
