TAXES 16-30, Nonresident Alien Federal Income Tax Withholding
Published: December 28, 2016
Effective: Pay Period 25, 2016
Summary
Effective January 1, 2017, the Nonresident Alien Federal income tax withholding formula will change:
- The Single or Head of Household and Married withholding tables will change.
- The annual amount to add to a nonresident alien's taxable wages prior to calculating the tax withholding will increase from $2,250 to $2,300.
Beginning with salary payments for Pay Period 25, 2016, Federal income tax will automatically be withheld in accordance with the new formula. No action on the part of the employee or the personnel office is necessary.
Tax Formula
Acceptable Exemption Form: |
W-4 |
Basis for Withholding: |
Federal Exemptions |
Acceptable Exemption Data: |
S/M, Number of Allowances |
TSP Deferred: |
Yes |
Special Coding: |
Determine the Total Number of Allowances as follows: Exemption Code N is the only acceptable code for nonresident aliens. Claim only one exemption, unless a resident of Canada, Mexico, South Korea, or a United States national. |
Additional Information: |
None |
Withholding Formula (Effective Pay Period 25, 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 (taxable life insurance, etc.) 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.
- Add $2,300 to the employee's annualized gross wages.
- Determine the personal exemption by applying the following guideline and subtract this amount from the gross wages to compute the taxable income:
Exemption Allowance = $4,050 x Number of Exemptions
- Apply the taxable income computed in step 6 to the following table to determine the Federal income tax withholding:
Tax Withholding Table Single or Head of Household
If the Amount of Taxable Income Is:
The Amount of Federal Income Tax Withholding Should Be:
Over $0 but not over $2,300
$0
Over $2,300 but not over $11,625
$0 plus 10.0% over $2,300
Over $11,625 but not over $40,250
$932.50 plus 15.0% over $11,625
Over $40,250 but not over $94,200
$5,226.25 plus 25.0% over $40,250
Over $94,200 but not over $193,950
$18,713.75 plus 28.0% over $94,200
Over $193,950 but not over $419,000
$46,643.75 plus 33.0% over $193,950
Over $419,000 but not over $420,700
$120,910.25 plus 35.0% over $419,000
Over $420,700
$121,505.25 plus 39.6% over $420,700
Tax Withholding Table Married
If the Amount of Taxable Income Is:
The Amount of Federal Income Tax Withholding Should Be:
Over $0 but not over $8,650
$0
Over $8,650 but not over $27,300
$0 plus 10.0% over $8,650
Over $27,300 but not over $84,550
$1,865.00 plus 15.0% over $27,300
Over $84,550 but not over $161,750
$10,452.50 plus 25.0% over $84,550
Over $161,750 but not over $242,000
$29,752.50 plus 28.0% over $161,750
Over $242,000 but not over $425,350
$52,222.50 plus 33.0% over $242,000
Over $425,350 but not over $479,350
$112,728.00 plus 35.0% over $425,350
Over $479,350
$131,628.00 plus 39.6% over $479,350
- Divide the annual Federal income tax withholding calculated in step 7 by 26 to obtain the biweekly Federal income 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 National Finance Center (NFC) homepage. Select the Publications tab in the center ribbon. Select U.S. Income Tax Formulas from the Publication menu to launch the tax map. Select 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.