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

Previous Year Federal Income Tax Calculation - Biweekly Payroll Period

Effective January, 2011

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 $142.31 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 2011, the value of one withholding allowance for a Biweekly Payroll Period is $142.31.  The "Making Work Pay" credit expires on December 31, 2010.  As a result, the income tax withholding tables for 2011 are not adjusted for the Making Work Pay credit. 

The 2011 withholding adjustment for nonresident aliens is $80.80 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 $81
$0
Over
But not over-
 
Of excess over
$81
$408
$0.00 plus 10%
$81
$408
$1,408
$32.70 plus 15%
$408
$1,408
$3,296
$182.70 plus 25%
$1,408
$3,296
$6,788
$654.70 plus 28%
$3,296
$6,788
$14,663
$1,632.46 plus 33%
$6,788
$14,663
 
$4,231.21plus 35%
$14,663

Married Person

Amount of wages subject to tax:
(after subtracting withholding allowances)
The amount of income tax withheld:
Not over $304
$0
Over
But not over-
 
Of excess over
$304
$958
$0.00 plus 10%
$304
$958
$2,958
$65.40 plus 15%
$958
$2,958
$5,663
$365.40 plus 25%
$2,958
$5,663
$8,469
$1,041.65 plus 28%
$5,663
$8,469
$14,887
$1,827.33 plus 33%
$8,469
$14,887
 
$3,945.27plus 35%
$14,887