TAXES 15-40, Alabama State Income Tax Withholding | National Finance Center

TAXES 15-40, Alabama State Income Tax Withholding

Published: October 2, 2015
Effective: Pay Period 20, 2015

Summary

The income tax withholding formula for the State of Alabama has been changed. The employees can no longer claim exemption from withholding.

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

Tax Formula

State Abbreviation:

AL

State Tax Withholding State Code:

01

Acceptable Exemption Form:

A-4

Basis for Withholding:

State Exemptions

Acceptable Exemption Data:

S, MS, M, HH / Number of Exemptions

TSP Deferred:

Yes

Special Coding:

Determine the Total Number of Allowances Claimed field as follows:

First Position - S = Single; MS = Married, Filing Separate Returns, M = Married, HH = Head of Household.

Second and Third Positions - Enter the total number of allowances claimed. If less than 10, precede with a 0 (zero).

Additional Information:

None

Withholding Formula (Effective Pay Period 20, 2015)

  1. Subtract the nontaxable biweekly Thrift Savings Plan contribution from the gross biweekly wages.
  2. 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.
  3. Add the taxable biweekly fringe benefits (taxable life insurance, etc.) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.
  4. Multiply the adjusted gross biweekly wages times 26 to obtain the gross annual wages.
  5. Determine the personal exemption by applying the following guideline and subtract this amount from the gross wages to compute the taxable income.

    Tax Withholding Table Zero (0) or Single (Filing Status S)

    If the Amount of Taxable Income Is:

    The Standard Deduction Amount Is:

    Over $0 but not over $20,499.99

    $2,500

    Over $20,499.99 but not over $20,999.99

    $2,475

    Over $20,999.99 but not over $21,499.99

    $2450

    Over $21,499.99 but not over $21,999.99

    $2,425

    Over $21,999.99 but not over $22,499.99

    $2,400

    Over $22,499.99 but not over $22,999.99

    $2,375

    Over $22,999.99 but not over $23,499.99

    $2,350

    Over $23,499.99 but not over $23,999.99

    $2,325

    Over $23,999.99 but not over $24,499.99

    $2,300

    Over $24,499.99 but not over $24,999.99

    $2,275

    Over $24,999.99 but not over $25,499.99

    $2,250

    Over $25,499.99 but not over $25,999.99

    $2,225

    Over $25,999.99 but not over $26,499.99

    $2,200

    Over $26,499.99 but not over $26,999.99

    $2,175

    Over $26,999.99 but not over $27,499.99

    $2,150

    Over $27,499.99 but not over $27,999.99

    $2,125

    Over $27,999.99 but not over $28,499.99

    $2,100

    Over $28,499.99 but not over $28,999.99

    $2,075

    Over $28,999.99 but not over $29,499.99

    $2,050

    Over $29,499.99 but not over $29,999.99

    $2,025

    Over $29,999.99 and over

    $2,000

    Tax Withholding Married Filing Separate (Filing Status MS)

    If the Amount of Taxable Income Is:

    The Standard Deduction Amount Is:

    Over $0 but not over $10,249.99

    $3,750

    Over $10,249.99 but not over $10,499.99

    $3,662

    Over $10,499.99 but not over $10,749.99

    $3,574

    Over $10,749.99 but not over $10,999.99

    $3,486

    Over $10,999.99 but not over $11,249.99

    $3,398

    Over $11,249.99 but not over $11,499.99

    $3,310

    Over $11,499.99 but not over $11,749.99

    $3,222

    Over $11,749.99 but not over $11,999.99

    $3,134

    Over $11,999.99 but not over $12,249.99

    $3,046

    Over $12,249.99 but not over $12,499.99

    $2,958

    Over $12,499.99 but not over $12,749.99

    $2,870

    Over $12,749.99 but not over $12,999.99

    $2,782

    Over $12,999.99 but not over $13,249.99

    $2,694

    Over $13,249.99 but not over $13,499.99

    $2,606

    Over $13,499.99 but not over $13,749.99

    $2,518

    Over $13,749.99 but not over $13,999.99

    $2,430

    Over $13,999.99 but not over $14,249.99

    $2,342

    Over $14,249.99 but not over $14,499.99

    $2,254

    Over $14,499.99 but not over $14,749.99

    $2,166

    Over $14,749.99 but not over $14,999.99

    $2,078

    Over $14,999.99 and over

    $2,000

    Tax Withholding Married (Filing Status M)

    If the Amount of Taxable Income Is:

    The Standard Deduction Amount Is:

    Over $0 but not over $20,499.99

    $7,500

    Over $20,499.99 but not over $20,999.99

    $7,325

    Over $20,999.99 but not over $21,499.99

    $7,150

    Over $21,499.99 but not over $21,999.99

    $6,975

    Over $21,999.99 but not over $22,499.99

    $6,800

    Over $22,499.99 but not over $22,999.99

    $6,625

    Over $22,999.99 but not over $23,499.99

    $6,450

    Over $23,499.99 but not over $23,999.99

    $6,275

    Over $23,999.99 but not over $24,499.99

    $6,100

    Over $24,499.99 but not over $24,999.99

    $5,925

    Over $24,999.99 but not over $25,499.99

    $5,750

    Over $25,499.99 but not over $25,999.99

    $5,575

    Over $25,999.99 but not over $26,499.99

    $5,400

    Over $26,499.99 but not over $26,999.99

    $5,225

    Over $26,999.99 but not over $27,499.99

    $5,050

    Over $27,499.99 but not over $27,999.99

    $4,875

    Over $27,999.99 but not over $28,499.99

    $4,700

    Over $28,499.99 but not over $28,999.99

    $4,525

    Over $28,999.99 but not over $29,499.99

    $4,350

    Over $29,499.99 but not over $29,999.99

    $4,175

    Over $29,999.99 and over

    $4,000

    Tax Withholding Head of Household (Filing Status HH)

    If the Amount of Taxable Income Is:

    The Standard Deduction Amount Is:

    Over $0 but not over $20,499.99

    $4,700

    Over $20,499.99 but not over $20,999.99

    $4,565

    Over $20,999.99 but not over $21,499.99

    $4,430

    Over $21,499.99 but not over $21,999.99

    $4,295

    Over $21,999.99 but not over $22,499.99

    $4,160

    Over $22,499.99 but not over $22,999.99

    $4,025

    Over $22,999.99 but not over $23,499.99

    $3,890

    Over $23,499.99 but not over $23,999.99

    $3,755

    Over $23,999.99 but not over $24,499.99

    $3,620

    Over $24,499.99 but not over $24,999.99

    $3,485

    Over $24,999.99 but not over $25,499.99

    $3,350

    Over $25,499.99 but not over $25,999.99

    $3,215

    Over $25,999.99 but not over $26,499.99

    $3,080

    Over $26,499.99 but not over $26,999.99

    $2,945

    Over $26,999.99 but not over $27,499.99

    $2,810

    Over $27,499.99 but not over $27,999.99

    $2,675

    Over $27,999.99 but not over $28,499.99

    $2,540

    Over $28,499.99 but not over $28,999.99

    $2,405

    Over $28,999.99 but not over $29,499.99

    $2,270

    Over $29,499.99 but not over $29,999.99

    $2,135

    Over $29,999.99 and over

    $2,000

  6. Calculate the Federal Tax Deduction based on the actual amount of federal tax withheld this payroll period multiplied by 26. Determine the personal exemption allowance based on the employee's marital status using the following table.

    If the Employee Claims the Following Withholding Exemption Status:

    The Personal Exemption Allowance Is:

    Zero

    $0

    Single or Married Filing Separate

    1,500

    Married or Head of Household

    3,000

  7. Calculate the Dependent Exemption by multiplying the number of exemptions claimed by one of the following amounts based on the employee's annualized wages.

    If the Amount of Annual Wages Is:

    The Amount Per Dependent Is:

    Over $0 but not over $20,000

    $1,000

    Over $20,000 but not over $100,000

    $500

    Over $100,000 and over

    $300

  8. If the employee is claiming "0" (Zero), Single, Married Filing Separately or Head of Household, apply the following tax rate the annualized taxable wages to determine the annual amount.

    Zero (0), Single, Married, Filing Separately or Head of Household

    If the Amount of Annual Taxable Wages Is:

    The Amount of Tax Is:

    Over $0 but not over $500

    $0 plus 2.0% over $0

    Over $500 but not over $3,000

    $10 plus 4.0% over $500

    Over $3,000 and over

    $110 plus 5.0% over $3,000

  9. If the employee is claiming Married, apply the following tax rate the annualized taxable wages to determine the annual amount.

    Married

    If the Amount of Annual Taxable Wages Is:

    The Amount of Tax Is:

    Over $0 but not over $1,000

    $0 plus 2.0% over $0

    Over $1,000 but not over $6,000

    $20 plus 4.0% over $1,000

    Over $6,000 and over

    $220 plus 5.0% over $6,000

  10. Divide the annual Alabama tax withholding by 26 to obtain the biweekly Alabama tax withholding.

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.

Additional Resources

To view the updated tax formula go to the HR/Payroll Client page and click the Publications tab in the center ribbon. Select Tax Formulas from the Publication menu to launch the tax map. Click the desired State from the map provided for the formula.