TAXES 20-22, Utah State Income Tax Withholding

Published: August 28, 2020
Effective: Pay Period 16, 2020

Summary

The income tax withholding formula for the State of Utah has been updated to eliminate the withholding allowance for employees who have not filed a W-4 form. The tax withheld will be at a flat 4.95 percent for those employees.

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

Tax Formula

State Abbreviation:

UT

State Tax Withholding State Code:

49

Acceptable Exemption Form:

W-4 (see Additional Information section)

Basis for Withholding:

Federal marital status

Acceptable Exemption Data:

S/M, prior to 2020 Federal Form W-4.
MS/MJ/HH, for 2020 Federal Form W-4.

TSP Deferred:

Yes

Special Coding:

The S, MS, and HH marital status will be treated as Single. The M and MJ marital status will be treated as Married.

Additional Information:

A State tax certificate is not required since the Federal Marital Status is used in the computation of the State formula. Employees who have not previously submitted a new 2020 Federal Form W-4 or a prior to 2020 Federal Form W-4, will be withheld at the flat rate of 4.95 percent without benefit of the annual withholding allowance.

 

Withholding Formula (Effective Pay Period 16, 2020)

  1. Subtract the nontaxable biweekly Thrift Savings Plan contribution from the gross biweekly wages.
  2. Subtract the nontaxable biweekly Federal Employees Health Benefits Plan payment(s) (includes dental and vision insurance program, and Flexible Spending Account — health care and dependent care deductions) from the adjusted gross biweekly wages.
  3. Add taxable biweekly fringe benefits (e.g., taxable life insurance) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.
  4. Multiply the adjusted gross biweekly wages by the number of pay dates in the tax year to obtain the gross annual wages.
  5. Multiply the annual taxable wages by 4.95 percent to determine the annual gross tax amount.
  6. Calculate the annual withholding allowance. If the employee has not filed a W-4, skip this step. The annual withholding allowance is zero if a W-4 has not been filed.
    1. Subtract the following amount from the employee's annual taxable wages, but not less than zero:

      Marital Status:

      Amount:

      Single

      $7,128

      Married

      $14,256

       

    2. Multiply the amount calculated in step 6a by 1.3 percent to determine the annual withholding allowance reduction.
    3. Subtract the annual withholding allowance reduction from the following Base Allowance, but not less than zero; the result is the annual withholding allowance:

      Marital Status:

      Base Allowance:

      Single

      $360

      Married

      $720

       

  7. Subtract the annual net withholding allowance in step 6c from the annual gross tax amount to determine the employee's annual net tax.
  8. Divide the annual Utah tax withholding calculated in step 7 by the number of pay dates in the tax year to obtain the biweekly Utah 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) Home page. Select the Publications tab and select U.S. Income Tax Formulas from the Publications 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 customer service portal.