Field Description - Tax - Federal Gross Income Over Amount

The Tax - Federal Gross Income Over Amount is the amount used to determine the Tax - Federal Base Amount to Withhold.  There are six levels, indicating different cutoff points for the Gross Income Over Amount.

Example:

If a single person's annual income is $25,000.00...

• Gross Income Level = 2 (see table)

• Federal Gross Income Over Amount = $10,000.00

• Federal Base Amount to Withhold = $735.00

• Federal Plus % of Excess Over Rate = 15.00%

• $25,000.00 - $10,000.00 = $15,000.00 Excess Taxable Amount

• Excess Taxable Amount $15,000.00 X % of Excess Over Rate 15.00% = Excess W/H Amount $2,250.00

• Federal Tax Withholding Amount = $735.00 + $2,250.00 = $2,985.00

Tip:  For more information, see Understanding Tax Calculations.

Where-Maintained:  Federal & Medicare FICA Tax Table Maintenance (FEDM2 & FEDS2), Federal & Regular FICA Tax Table Maintenance (FEDM & FEDS)

Where-Used:  Tax calculations

Format:  6.2 numeric