TAXES 16-17, Oklahoma State Income Tax Withholding

Published: March 25, 2016
Effective: Pay Period 06, 2016

Summary

The income tax withholding formula for the State of Oklahoma will include the following changes:

The flat tax rate on supplemental wages will change from 5.25 percent to 5.00 percent.
The Single and Married withholding tables will increase.

No action on the part of the employee or the personnel office is necessary.

Tax Formula

State Abbreviation:	OK
State Tax Withholding State Code:	40
Acceptable Exemption Form:	W-4
Basis for Withholding:	State or Federal Exemptions
Acceptable Exemption Data:	S, M/Number of Exemptions
TSP Deferred:	Yes
Special Coding:	None
Additional Information:	If no State income tax certificate has been processed or no valid State exemption code is present, the Federal exemptions will be used in the computation of State taxes.

Withholding Formula (Effective Pay Period 06, 2016)

Subtract the nontaxable biweekly Thrift Savings Plan contribution from the gross biweekly wages.
Subtract the nontaxable biweekly Federal Health Benefits Plan payment(s) (includes dental and vision insurance program and Flexible Spending Account - health care and dependent care deductions) from the amount computed in step 1.
Add the taxable biweekly fringe benefits (i.e., taxable life insurance) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.
Multiply the adjusted gross biweekly wages times 26 to obtain the gross annual wages.
Determine the exemption allowance by applying the following guidelines and subtract this amount from the result of step 4:
Exemption Allowance = $1,000 x Number of Exemptions

Apply the taxable income computed in step 5 to the following table(s) to determine the annual Oklahoma tax withholding:

Single Tax Withholding Table

If the Amount of Taxable Income Is:	The Amount of Tax Withholding Should Be:
Over $0 but not over $6,300	$0.00
Over $6,300 but not over $7,300	$0.00 plus 0.50% of excess over $6,300
Over $7,300 but not over $8,800	$5.00 plus 1.00% of excess over $7,300
Over $8,800 but not over $10,050	$20.00 plus 2.00% of excess over $8,800
Over $10,050 but not over $11,200	$45.00 plus 3.00% of excess over $10,050
Over $11,200 but not over $13,500	$79.50 plus 4.00% of excess over $11,200
Over $13,500	$171.50 plus 5.00% of excess over $13,500

Married Tax Withholding Table

If the Amount of Taxable Income Is:	The Amount of Tax Withholding Should Be:
Over $0 but not over $12,600	$0.00
Over $12,600 but not over $14,600	$0.00 plus 0.50% of excess over $12,600
Over $14,600 but not over $17,600	$10.00 plus 1.00% of excess over $14,600
Over $17,600 but not over $20,100	$40.00 plus 2.00% of excess over $17,600
Over $20,100 but not over $22,400	$90.00 plus 3.00% of excess over $20,100
Over $22,400 but not over $24,800	$159.00 plus 4.00% of excess over $22,400
Over $24,800	$255.00 plus 5.00% of excess over $24,800

Divide the annual Oklahoma tax withholding by 26 and round to the nearest dollar to obtain the biweekly Oklahoma tax withholding.
Add the additional amount or percentage elected by the employee to the pay period tax calculated in the above step and round to the nearest dollar to determine the amount of tax to be withheld for the pay period.

Additional Resources

To view the updated tax formula, go to the HR and Payroll Clients page from the MyNFC drop-down menu on the NFC homepage. Click the Publications tab in the center ribbon. Select U.S. Income Tax Formulas from the Publication menu to launch the tax map. Click the desired State from the map provided for the formula.

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