Withholding Tables For Individual Income Tax - Maine Revenue Services - 2013 Page 7
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20WITHHOLDING TAX RATE SCHEDULES
For Single Taxpayers
If the annualized income is:
The annualized withholding is:
Less than
$ 8,450
0.0%
$ 8,450 but less than
$ 24,150
6.5% of excess over
$ 8,450
$ 24,150 or more
$ 1,021 plus 7.95% of excess over
$ 24,150
For Married Taxpayers
If the annualized income is:
The annualized withholding is:
Less than
$ 17,750
0.0%
$ 17,750 but less than
$ 49,150
6.50% of excess over
$ 17,750
$ 49,150 or more
$ 2,041 plus 7.95% of excess over $ 49,150
Example 1:
A single employee is paid $300 each week. The employee claims two withholding allowances on Form W-4ME.
Using the percentage method, compute the employee’s withholding as follows:
(1)
Gross pay of $300 x 52 weeks = $15,600
(2)
Compute annualized income:
2 allowances x $3,900 = $7,800
Annualized wage
$15,600
Allowances
- 7,800
Annualized Income
$7,800
(4)
Compute annualized withholding amount:
$7,800
- 8,450
$0
Because the annualized income amount is less than $8,450, the amount to be withheld is zero.
Example 2:
A single employee is paid $750 each week. The employee claims two withholding allowances on Form W-4ME.
Using the percentage method, compute the employee’s withholding as follows:
(1)
Gross pay of $750 x 52 weeks = $39,000
(2)
Compute annualized income:
2 allowances x $3,900 = $7,800
Annualized wage
$39,000
Allowances
-
7,800
Annualized Income
$31,200
(4)
Compute annualized withholding amount:
Rate
Tax
$31,200
- 24,150
See Schedule
$
1,021
$
7,050
x 7.95%
560
Annualized Withholding Amount
$
1,581
(5)
Annualized withholding of $1,581 divided by 52 = $30.40 rounded to $30. Withhold $30 each week.
NOTE: If the payment involved is subject to fl at rate federal withholding (backup withholding), a fl at
rate state withholding of 5% must be withheld. Multiply the amount of payment by 5% to
compute the amount of tax to withhold. Do not use the above steps.
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