TAXES 18-25, Delaware State Income Tax Withholding

TAXES 18-25, Delaware State Income Tax Withholding

Published: March 21, 2018
Effective: Pay Period 06, 2014

Summary

This tax bulletin is being updated to remove the number of pay periods in steps 4 and 8 and replace with the phrase "number of pay dates in the tax year," thereby preventing any confusion in future years. All other information in this bulletin remains the same.

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

Tax Formula

State Abbreviation:

DE

State Tax Withholding State Code:

10

Acceptable Exemption Form:

W-4

Basis for Withholding:

State Exemptions

Acceptable Exemption Data:

S/M, Number of Exemptions

TSP Deferred:

Yes

Special Coding:

None

Additional Information:

Single (S) exemption code is used for both Single and Married (Filing Separately). Married (M) exemption code is used only for Married (Filing Jointly).

 

Withholding Formula (Effective Pay Period 06, 2014)

  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 (i.e., 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. Determine the standard deduction allowance by applying the following guideline and subtract this amount from the annual wages:

    Single

    Married (Filing Jointly)

    Married (Filing Separately)

    $3,250

    $6,500

    $3,250

     

  6. Apply the taxable income computed in step 5 to the following table to determine the annual Delaware tax withholding:

    If the Amount of
    Taxable Income Is:

    The Amount of Delaware
    Tax Withholding Should Be:

    Over $0 but not over $2,000

    $0.00

    Over $2,000 but not over $5,000

    2.20% of excess over $2,000

    Over $5,000 but not over $10,000

    $66.00 plus 3.90% of excess over $5,000

    Over $10,000 but not over $20,000

    $261.00 plus 4.80% of excess over $10,000

    Over $20,000 but not over $25,000

    $741.00 plus 5.20% of excess over $20,000

    Over $25,000 but not over $60,000

    $1,001.00 plus 5.55% of excess over $25,000

    Over $60,000

    $2,943.00 plus 6.60% of excess over $60,000

     

  7. Determine the exemption allowance by applying the following guideline and subtract this amount from the result of step 6 to compute the annual Delaware tax withholding:

    Exemption Allowance = $110 x Number of Exemptions

  8. Divide the annual Delaware tax withholding by the number of pay dates in the tax year to obtain the biweekly Delaware 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 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.

Previous Tax Bulletin

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.