TAXES 16-25, Iowa State Income Tax Withholding
Published: March 25, 2016
Effective: Pay Period 06, 2016
Summary
The Iowa State income tax is no longer required to be rounded to the nearest whole dollar to obtain the biweekly tax withholding. No action on the part of the employee or the personnel office is necessary.
Tax Formula
State Abbreviation: |
IA |
State Tax Withholding State Code: |
19 |
Acceptable Exemption Form: |
IA-W4 or W4 |
Basis for Withholding: |
State Exemptions |
Acceptable Exemption Data: |
0/Number of Allowances |
TSP Deferred: |
Yes |
Special Coding: |
Determine the Total Number Of Allowances Claimed field as follows:
|
Additional Information: |
None |
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.
- Multiply the biweekly Federal income tax withholding by 26 to obtain the annual Federal income tax withholding and subtract this amount from the gross annual wages computed in step 4.
- Determine the standard deduction by applying the following guideline and subtract this amount from the result of step 5 to compute the taxable income:
If the Number of Allowances Claimed Is:
If the Number of Allowances Claimed Is:
The Standard Deduction Is:
0 or 1
$1,650
2 or more
$4,060
- Apply the taxable income computed in step 6 to the following table to determine the Iowa tax withholding:
Tax Withholding Table
If the Amount of Taxable Income Is:
The Amount of Iowa Tax Withholding Should Be:
Over $0 but not over $1,300
$0.00 plus 0.36% of excess over $0
Over $1,300 but not over $2,600
$4.68 plus 0.72% of excess over $1,300
Over $2,600 but not over $5,200
$14.04 plus 2.43% of excess over $2,600
Over $5,200 but not over $11,700
$77.22 plus 4.50% of excess over $5,200
Over $11,700 but not over $19,500
$369.72 plus 6.12% of excess over $11,700
Over $19,500 but not over $26,000
$847.08 plus 6.48% of excess over $19,500
Over $26,000 but not over $39,000
$1,268.28 plus 6.80% of excess over $26,000
Over $39,000 but not over $58,500
$2,152.28 plus 7.92% of excess over $39,000
Over $58,500
$3,696.68 plus 8.98% of excess over $58,500
- Determine the exemption allowance by applying the following guideline and subtract this amount from the results of step 7 to compute the annual Iowa tax withholding:
Exemption Allowance = $40 x Number of Exemptions
- Divide the annual Iowa tax withholding by 26 to obtain the biweekly Iowa tax withholding.
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.
Inquiries
For questions about NFC processing, authorized Servicing Personnel Office representatives should contact the NFC Contact Center at 1-855-NFC-4GOV (1-855-632-4468) or via the Internet using the Requester Console.