Fillable Printable Withholding Tax Percentage Formula, 150-206-677
Fillable Printable Withholding Tax Percentage Formula, 150-206-677
Withholding Tax Percentage Formula, 150-206-677
150-206-677 (Rev. 07-15) 1
Withholding Tax
Percentage Formula
To figure Oregon withholding amounts, you may
use the formulas shown below. If you use your own
formula, it must be approved by the Oregon Depart-
ment of Revenue before use.
To use the formulas for each payroll period, you
must figure a ‘base wage’ (BASE) amount. The base
wage is the employee’s wage minus the federal tax
withheld minus standard deduction. The federal
tax deduction can’t be more than $6,450 per year in
2015. That’s because Oregon personal income tax
law limits the amount of federal income tax that is
subtracted from federal adjusted gross income (AGI).
For payroll periods of less than a year, figure the
annual withholding then divide by the number of
pay periods.
Once you figure the base wage, use the base wage in
the formulas below to compute your Oregon with-
holding (WH).
Example 1: A single employee has an annual wage
of $15,000 and claims one allowance. If the federal
withholding for this employee is $1,440, and stan-
dard deduction is $2,145, then the base is $11,415 =
($15,000 – $1,440 – $2,415). The amount of annual
Oregon withholding from the table below would be
$986.
WH = $715 + [(BASE – $8,400) x 0.09] – (194 x Allowances)
WH = $715 + [($11,415 – $8,400) x 0.09] – 194 x 0 = $986
You can figure Oregon withholding for this employee
as follows:
1. Wage ............................................................ $15,000
2. Less federal withholding.......................... – $1, 44 0
3. Less standard deduction .......................... – $ 2,14 5
4. BASE ............................................................ $11,415
5. Amount of BASE over $7,950 .................... $3,015
6. Tax on first $8,400 of BASE....................... $715
7. Tax on excess (0.09 × $3,015) ..................... $271
8. Total tax from rates (lines 6 + 7) .............. $986
9. Less personal exemption credit ($194 × 0) – $0
10. Net tax to be withheld .............................. $986
Example 2: To figure withholding based on the same
information listed in example 1:
• For monthly, take the annual “net tax to be with-
held” ($986) & divide by 12 = $82.
• For twice a month, take the $986 and divide by 24
= $41.
• For every two weeks, take the $986 and divide by
26 = $38.
• For weekly, take the $986 and divide by 52 = $19.
• For daily, take the $986 and divide by 260 = $4.
Example 3: A single employee earns $132,000 a year
and claims four allowances on her federal W-4.
Because the employee makes more than $125,000
annually, the employee’s subtraction for federal
withholding is limited. For example, if the employ-
ee’s federal tax withheld is $9,368 for the year, they
may only subtract $3,850 of that amount. Because
the single taxpayers adjusted gross income is over
$100,000, the personal exemption credits of four are
not allowed.
Example 4: A married employee earns $175,000 a year
and claims four allowances on his federal W-4 but
he requests his employer to withhold at the higher
single rate even though he is married. Because his
annual income is higher than $145,000 which is the
final step in the phase-out for the single withholding
rates, his employer would not give any subtraction
for federal tax withheld. His employer would also
not allow any allowances in the formula because his
income is over $100,000 for a single individual.
Have questions? Need help?
General tax information .......... www.oregon.gov/dor
Salem ....................................................(503) 378-4988
Toll-free from an Oregon prefix ... 1 (800) 356-4222
Asistencia en español:
En Salem o fuera de Oregon .............(503) 378-4988
Gratis de prefijo de Oregon ........... 1 (800) 356-4222
TTY (hearing or speech impaired; machine only):
Salem area or outside Oregon ...........(503) 945-8617
Toll-free from an Oregon prefix ....1 (800) 886-7204
Americans with Disabilities Act (ADA): Call one of the help
numbers above for information in alternative formats.
March 2015 www.oregon.gov/dor
150-206-677 (Rev. 07-15) 2
Use the formula that matches your payroll period
Annual wages up to $50,000
Annual formula: BASE = wages – federal tax withheld (not to exceed $6,450) – standard deduction ($2,145[S] / $4,295[M])
Single with less than 3 allowances (A) Single with 3 or more allowances (A) or Married
If BASE is: If BASE is:
Over But not over Over But not over
0 > 3,350 WH = 194 + [BASE × 0.05] – (194 × allow.) 0 > 6,700 WH = 194 + [BASE × 0.05] – (194 × allow.)
3,450 > 8,400 WH = 362 + [(BASE – 3,450) × 0.07] – (194 × allow.) 6,700 > 16,800 WH = 529 + [(BASE – 6,700) × 0.07] – (194 × allow.)
8,400 > 50,000 WH = 715 + [(BASE – 8,400) × 0.09] – (194 × allow.) 16,800 > 50,000 WH = 1,236 + [(BASE – 16,800) × 0.09] – (194 × allow.)
Annual wages of $50,000 or higher
Annual formula: BASE = wages – federal tax withheld (not to exceed phase out) – standard deduction ($2,145[S] / $4,295[M])
Single with less than 3 allowances (A) Single with 3 or more allowances (A) or Married
If BASE is: If BASE is:
Over But not over Over But not over
41,405 > 125,000 WH = 521 + [(BASE – 8,400) × 0.09] – (194 × allow.) 39,255 > 250,000 WH = 1,042 + [(BASE – 16,800) × 0.09] – (194 × allow.)
125,000 WH = 11,015 + [(BASE – 125,000) × 0.099] – (194 × allow.) 250,000 WH = 22,030 + [(BASE – 250,000) × 0.099] – (194 × allow.)
Phase out amounts
Single
Annual
wages ≥ $50,000 and < $125,000 = $6,450
wages ≥ $125,000 and < $130,000 = $5,150
wages ≥ $130,000 and < $135,000 = $3,850
wages ≥ $135,000 and < $140,000 = $2,550
wages ≥ $140,000 and < $145,000 = $1,250
wages ≥ $145,000 = $0
Married
Annual
wages ≥ $50,000 and < $250,000 = $6,450
wages ≥ $250,000 and < $260,000 = $5,150
wages ≥ $260,000 and < $270,000 = $3,850
wages ≥ $270,000 and < $280,000 = $2,550
wages ≥ $280,000 and < $290,000 = $1,250
wages ≥ $290,000 = $0
