University of Minnesota
Office of Human Resources
http://www.umn.edu/ohr
612-625-2016

Federal Income Tax Calculation - Biweekly Payroll Period

Effective January, 2014

To determine the amount of wages subject to federal tax, you must first add any taxable fringe benefits and taxable employer-paid deductions to your gross pay amount. You can then subtract $151.90 from the total biweekly taxable gross pay for each withholding allowance claimed.

Also, if you participate in tax deferred retirement (MSRS, Faculty Retirement Plan, 457 Plan, or Optional Retirement 403b Plan), before-tax Parking, Metro Pass, Employee Insurance Benefits, or Medical or Dependent Care Benefit Reimbursement deductions programs, subtract those amounts from biweekly gross pay as well. The remainder is subject to withholding tax at the rate in the appropriate biweekly table below.

Percentage Method – Value of One Withholding Allowance

In 2014, the value of one withholding allowance for a Biweekly Payroll Period is $151.90. 

The 2014 withholding adjustment for nonresident aliens is $86.50 for biweekly tax calculation purposes only.  This amount is added to the wage calculation solely for the purpose of calculating income tax withholding on the wages.  Note that nonresident alien students from India are not subject to this procedure.

Single Person (including Head of Household)

Amount of wages subject to tax:
(after subtracting withholding allowances)
The amount of income tax withheld:
Not over $87
$0
Over
But not over-
 
Of excess over
$87
$436
$0.00 plus 10%
$87
$436
$1,506
$34.90 plus 15%
$436
$1,506
$3,523
$195.40 plus 25%
$1,506
$3,523
$7,254
$699.65 plus 28%
$3,523
$7,254
$15,667
$1,744.33 plus 33%
$7,254
$15,667
$15,731
$4,520.62 plus 35%
$15,667
$15,731
 
$4,543.02 plus 39.6%
$15,731

Married Person

Amount of wages subject to tax:
(after subtracting withholding allowances)
The amount of income tax withheld:
Not over $325
$0
Over
But not over-
 
Of excess over
$325
$1,023
$0.00 plus 10%
$325
$1,23
$3,163
$69.80 plus 15%
$1,023
$3,163
$6,050
$390.80 plus 25%
$3,163
$6,050
$9,050
$1,112.55 plus 28%
$6,050
$9,050
$15,906
$1,952.55 plus 33%
$9,050
$15,906
$17,925
$4,215.03 plus 35%
$15,906
$17,925
 
$4,921.68 plus 39.6%
$17,925