Iowa Withholding Tax Booklet And Tax Tables - 2005 Page 10
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28Iowa Department of Revenue
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contain the name, address and Federal employer identification number of the employer and the
name, address, Social Security number of the employee, the gross amount of compensation paid
to the employee during the year and the amount of Federal and State tax withheld.
6. CALCULATION OF WITHHOLDING
Computer Formula
The State of Iowa offers two formulas, either of which may be used by withholding agents in
calculating the correct amount of Iowa tax to withhold from an employee’s paycheck. The
regular formula utilizes values for the actual pay period to calculate liability. The annualized
formula projects all values to an annual basis, then reduces the tax back to the amount due for the
pay period. For withholding agents who must calculate withholding for more than one length of
pay period, the annualized formula may be particularly beneficial. Round all amounts to the
nearest whole dollar.
Values of Variables used in the Formula
Standard Deduction Amounts
Pay Period
Number of Personal Allowances Claimed
0 or 1
2 or more
Weekly
$
28.85
$
69.23
Biweekly
$
57.69
$
138.46
Monthly
$
125.00
$
300.00
Annually
$
1,500.00
$
3,600.00
Tax Rate and Bracket Amounts
Rates
Weekly
Biweekly
Semimonthly
Monthly
Annually
0.0036 x 1st
$24.40
$48.81
$52.88
$105.75
$1,269.00
0.0072 x next
$24.40
$48.81
$52.88
$105.75
$1,269.00
0.0243 x next
$48.81
$97.62
$105.75
$211.50
$2,538.00
0.0450 x next
$122.02
$244.04
$264.38
$528.75
$6,345.00
0.0612 x next
$146.42
$292.85
$317.25
$634.50
$7,614.00
0.0648 x next
$122.02
$244.04
$264.38
$528.75
$6,345.00
0.0680 x next
$244.04
$488.08
$528.75
$1,057.50
$12,690.00
0.0792 x next
$366.06
$732.12
$793.13
$1,586.25
$19,035.00
0.0898 x remaining amount
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