Table 2: 2013 State Withholding Rates and Rate Calculations for Qualified Retirement Plan and IRA Plan Distributions
NOTE: Use of the terms “periodical” and “non-periodical” is the same as defined for federal purposes under IRC '3405 and related federal regulations. Where
there are special state applications to “eligible rollover distributions” (ERDs) as defined in IRC '3405 subject to federal withholding at 20%, they are so noted in
the table.
11102013 (replaces 11012013) DC updated to add link to FR 230.
State
Alabama (as of
03/13/2013)
Periodical
Calculation
Nonperiodical
Calculation
Applies to
periodical
payments from
QRPs, life
insurance
contracts,
commercial
annuities, and
endowment
contracts. QRPs
include IRC
'401(a), including
'401(k), '403(a)
and (b), and
governmental '457
plans.
Applies to
nonperiodical
payments such as
lump sums from
QRPs, life insurance
contracts, commercial
annuities, and
endowment contracts,
and to all taxable IRA
distributions.
Wage tables at
http://revenue.al
abama.gov/withh
olding/whbooklet
_0213.pdf
In Alabama,
payers may elect
to treat
distributions as
“wages” and if
elected
compliance
follows wage
treatment. ADOR
prefers that you
use the tables for
periodical
payments and if
so, an A-4 is
needed from
payee. In the
alternative, payer
can treat the
payment as a
supplemental
wage and
withhold 5%
where no A-4 is
5%
Minimum
Percentage
Rate
Minimum
Dollar
Amount
Comments
Authority with
Hyperlink
Other Authority
Withholding can be
effected on a voluntary
basis. Must have A4,
Employee's Exemption
Certificate, to use wage
tables or withhold
supplemental rate if
agreed upon. If use
periodical tables and
receive an A-4, two
withholding exemptions
have been added: "H"
and "MS." "H" indicates
an employee is single,
has one or more
qualifying dependents,
and is claiming head of
family. Withholding
exemption "MS"
indicates an employee
is married, but filing a
separate return. "H" has
the same value as the
"M" exemption, and
"MS" has the same
value as the "S"
exemption. A
withholding exemption
http://www.revenue.alab
ama.gov/incometax/1we
breghold/810-03-075MN.htm#reg81037504
Alabama Department of
Revenue Administrative
Code §810-3-75-.04
See
http://revenue.alabama.
gov/withholding/whbookl
et_0213.pdf
State
Periodical
Calculation
Nonperiodical
Calculation
Applies to
periodical
payments from
QRPs, life
insurance
contracts,
commercial
annuities, and
endowment
contracts. QRPs
include IRC
'401(a), including
'401(k), '403(a)
and (b), and
governmental '457
plans.
Applies to
nonperiodical
payments such as
lump sums from
QRPs, life insurance
contracts, commercial
annuities, and
endowment contracts,
and to all taxable IRA
distributions.
required.
Minimum
Dollar
Amount
Comments
Authority with
Hyperlink
Other Authority
of "0" indicates that no
personal exemption is
selected. A withholding
exemption of "S"
indicates that a full
personal exemption is
selected. A withholding
exemption of "M"
indicates that personal
exemptions for both
spouses are being
selected. [Rule 810-371-.02]
Alaska
Arizona
(as of
12/17/2012)
Minimum
Percentage
Rate
No state income tax
Effective
7/1/2010, AZ
adopted tables
no longer tied to
the federal
withholding rate.
New rates to be
elected on Form
A-4P are: 0.8%,
1.3%, 1.8%,
2.7%, 3.6%,
4.2%, and 5.1%.
Rates are to be
applied to the
taxable amount
of distribution as
reported in Box
2a of federal
Form 1099-R.
No withholding
permitted on nonperiodic or other
lump sum
distribution.
Effective7/1/2010,
withholding is a
percentage of taxable
amount of the
distribution as reported
in Box 2a of federal
Form 1099-R and no
longer a percentage of
federal withholding.
New rates are to be
elected by the payee on
A-4P; A-4P needs to be
on file to support
withholding.
See current A-4P at
http://www.azdor.gov/Fo
rms/Withholding.aspx
http://www.azdor.gov/Bu
siness/WithholdingTax.a
spx
A.R.S. §43-404; AZ
Withholding Tax Ruling
WTR 99-2.
http://www.azdor.gov/Li
nkClick.aspx?fileticket=f
69LSkeUCDI%3d&tabid
=241
Historical note: Each
pension or annuity
recipient electing
withholding when the
change in withholding
regime occurred in 2010
were required to file a
revised Form A-4P to
elect a new withholding
percentage and take into
consideration the
change in the
withholding base.
Notifications of the
changes were required
to be provided to
payees. See Table 3.
State
Periodical
Calculation
Nonperiodical
Calculation
Applies to
periodical
payments from
QRPs, life
insurance
contracts,
commercial
annuities, and
endowment
contracts. QRPs
include IRC
'401(a), including
'401(k), '403(a)
and (b), and
governmental '457
plans.
Applies to
nonperiodical
payments such as
lump sums from
QRPs, life insurance
contracts, commercial
annuities, and
endowment contracts,
and to all taxable IRA
distributions.
Minimum
Percentage
Rate
Minimum
Dollar
Amount
Comments
Authority with
Hyperlink
Other Authority
Prior to the change,
withholding was a
percentage of federal
withholding. Rates
decreased from 2009 for
1/1/2010 through
6/30/2010 to: 10.7%,
20.3%, 24.5%, 26.7%,
33.1% or 39.5% of
federal tax withheld as
specified on A-4P.
After 6/30/2010, new A4Ps were required and
new designated
percentages applied.
Rates from 5/1/2009
through 12/31/2009
were: 11.5%, 21.9%,
26.5%, 28.8%, 35.7% or
42.6% of federal tax
withheld as specified on
A-4P.
Arkansas (as of
10/04/2013)
Must use wage
tables. Under
current law,
specific dollar
amounts cannot
be designated
unless as an
additional
amount to be
withheld on
line 5 of AR4P. If
3% of taxable
amount for IRAs
and other nonperiodical
payments unless
ERD.
5% for all ERDs
(direct
distributions that
would be eligible
for rollover)
3% for IRAs and
other nonperiodical
distributions;
5% for ERDs
Arkansas allows
annuitants who receive
benefits from an
employment-related
annuity plan or qualified
IRA distribution to
exempt the first $6,000
of benefits received.
Must submit AR 4P to
claim exemption.
http://www.dfa.arkansas
.gov/offices/incomeTax/
withholding/Documents/
AR4P.pdf
Current employer guide
and tables are dated
12/7/1998. See at
http://www.dfa.arkansas
.gov/offices/incomeTax/
withholding/Documents/
Arkansas Act 1309 of
2005 adopting IRC
§3405;
A.C.A. §26-51-918;
State of Ark. Employee's
Exemption Certificate for
Pensions and Annuities.
http://www.dfa.arkansas.
gov/offices/incomeTax/w
ithholding/Documents/A
R4P.pdf
State
Periodical
Calculation
Nonperiodical
Calculation
Applies to
periodical
payments from
QRPs, life
insurance
contracts,
commercial
annuities, and
endowment
contracts. QRPs
include IRC
'401(a), including
'401(k), '403(a)
and (b), and
governmental '457
plans.
Applies to
nonperiodical
payments such as
lump sums from
QRPs, life insurance
contracts, commercial
annuities, and
endowment contracts,
and to all taxable IRA
distributions.
payee fails to
submit AR4P,
the payer must
withhold on
periodic
payments as if
payee was
married claiming
three withholding
allowances.
The agency has
announced that
withholding
tables will
change for 2014
and 2015 to
accommodate
recent rate
changes. See
comment
column.
Minimum
Percentage
Rate
Minimum
Dollar
Amount
Comments
May not elect out of
withholding if recipient
of ERD, or with address
for payment outside the
U.S. or its possessions,
or if a nonresident alien.
If payee submits an
AR4P that fails to
contain a correct
taxpayer identification
number (TIN), the payer
must withhold as if
payee is single claiming
zero withholding
allowances even if they
choose not to have state
income tax withheld.
See instructions to AR
4P.
Withholding formula for
periodicals is available
at
http://www.dfa.arkansas.
gov/offices/incomeTax/w
ithholding/Documents/w
hformula.pdf
Wage tables are at
http://www.dfa.arkansas.
gov/offices/incomeTax/w
ithholding/Documents/wi
thholdTaxTables.pdf
and for low income at
http://www.dfa.arkansas.
gov/offices/incomeTax/w
ithholding/Documents/wi
thholdTaxTablesLowInc
ome.pdf
Authority with
Hyperlink
withholdTaxTables.pdf
.
Other Authority
State
Periodical
Calculation
Nonperiodical
Calculation
Applies to
periodical
payments from
QRPs, life
insurance
contracts,
commercial
annuities, and
endowment
contracts. QRPs
include IRC
'401(a), including
'401(k), '403(a)
and (b), and
governmental '457
plans.
Applies to
nonperiodical
payments such as
lump sums from
QRPs, life insurance
contracts, commercial
annuities, and
endowment contracts,
and to all taxable IRA
distributions.
Minimum
Percentage
Rate
Minimum
Dollar
Amount
Comments
For when to use the low
income tables see
instructions to AR 4P.
The following tax rates
become effective in
2015 except for the
lowest rate which will be
effective in 2014: $0 to
$4,099 of net income:
0.9%; $4,100 to $8,199
of net income: 2.4%;
$8,200 to $12,199 of net
income: 3.4%;
$12,200 to $20,399 of
net income: 4.4%;
$20,400 to $33,999 of
net income: 5.9%; and
$34,000 or more of net
income: 6.9%. Inflationadjustments are part of
the legislation. In
addition, the Arkansas
personal income tax
standard deduction is
increased from $2,000
to $2,200 per taxpayer
for tax years beginning
after 2014. [H.B. 1585
and H.B.1966 (Act
1488), 2013]
The agency has
announced that
withholding tables will
change for 2014 and
2015
Authority with
Hyperlink
Other Authority
State
California (as of
11/01/2013)
Periodical
Calculation
Nonperiodical
Calculation
Applies to
periodical
payments from
QRPs, life
insurance
contracts,
commercial
annuities, and
endowment
contracts. QRPs
include IRC
'401(a), including
'401(k), '403(a)
and (b), and
governmental '457
plans.
Applies to
nonperiodical
payments such as
lump sums from
QRPs, life insurance
contracts, commercial
annuities, and
endowment contracts,
and to all taxable IRA
distributions.
California allows 3 different
withholding options:
(1) 10% of the amount of the
computed federal withholding tax;
(2) California wage withholding tables
using DE 4P allowances; or
(3) A designated dollar amount as
requested by the participant on DE 4P.
2014 and 2013 withholding tables can
be found at
http://www.edd.ca.gov/Payroll_Taxes/
Rates_and_Withholding.htm#CAWithh
oldingSchedules
Minimum
Percentage
Rate
Minimum
Dollar
Amount
1.00%
$10
Comments
Periodic and nonperiodic payments are
treated as wages.
Voters approved
Proposition 30 to
increase personal
income tax rates for
individuals earning over
$250,000 for taxable
years beginning after
2011 and before 2019.
Temporary 10.3%,
11.3%, and 12.3%
personal income tax
brackets are created for
individuals earning over
$250,000, $300,000,
and $500,000.
Authority with
Hyperlink
http://www.edd.ca.gov/p
df_pub_ctr/de231p.pdf
http://www.edd.ca.gov/p
df_pub_ctr/de4p.pdf
See 2014 and 2013
tables at
http://www.edd.ca.gov/P
ayroll_Taxes/Rates_and
_Withholding.htm#CAWi
thholdingSchedules .
Colorado (as of
01/03/2013)
Agency suggests
using
supplemental
wage rate for
bonuses of 4.63%
Totally voluntary
withholding. Colorado
DOR email received
6/22/2007 suggests
using the flat tax rate
(currently 4.63% for
2013-2011) in the
context of voluntary
requests to withhold.
Withholding is not
required because the
first $20,000 of taxable
Withholding tables
change every 2 years.
New tables released for
2013 at
http://www.colorado.gov
/cs/Satellite?blobcol=url
data&blobheader=applic
ation%2Fpdf&blobkey=i
d&blobtable=MungoBlob
s&blobwhere=12518441
68748&ssbinary=true
Other Authority
California Revenue &
Tax Code §18662
State
Periodical
Calculation
Nonperiodical
Calculation
Applies to
periodical
payments from
QRPs, life
insurance
contracts,
commercial
annuities, and
endowment
contracts. QRPs
include IRC
'401(a), including
'401(k), '403(a)
and (b), and
governmental '457
plans.
Applies to
nonperiodical
payments such as
lump sums from
QRPs, life insurance
contracts, commercial
annuities, and
endowment contracts,
and to all taxable IRA
distributions.
Minimum
Percentage
Rate
Minimum
Dollar
Amount
Comments
Authority with
Hyperlink
Other Authority
pension, IRA or other
retirement income is not
subject to tax for
individuals age 55 or
older ($24,000 if age 65
or older) if not from a
premature distribution.
If the pension
organization agrees to
withhold on pensions,
an individual may
request Colorado tax be
withheld. Payer files
same forms as for
withholding on wages.
Round withholding to
nearest dollar.
Connecticut (as
of 08/14/2013)
The request to withhold and deduct
Connecticut income tax is to be made
in a specific whole dollar amount on
CT-W-4P
http://www.ct.gov/drs/lib/drs/forms/201
3withholding/ct-w4p.pdf
Delaware (as of
04/03/2013)
Delaware recommends the use of a
percentage method of withholding
rather than the wage tax tables
although the tax tables are allowed. If
a percentage method of withholding is
used, it is recommended that the
percent withheld not be less than 5%.
If wage tables are used, the W-4P may
be required to determine correct
allowances for accessing withholding
$10 minimum
request to
withhold
5.00%
Rounded to nearest $
See IP 2013(8) at
http://www.ct.gov/drs/lib/
drs/publications/pubsip/
2013/ip2013-8.pdf
Connecticut Agencies
Regs. §12-705(b)-3
Delaware w/h is
mandatory on ERD or
on all distributions
where payment made to
outside the U.S. where
federal w/h is
mandatory. Under
Federal statute,
withholding on certain
retirement pay is
http://revenue.delaware.
gov/services/wit_folder/s
ection12.shtml
State of Delaware
"Employer's Guide,
Section 12: Deferred
Compensation"
Effective January 1,
2014, the top personal
income tax rate reduces
to 6.6%, down from
6.75% in 2013. The top
State
Periodical
Calculation
Nonperiodical
Calculation
Applies to
periodical
payments from
QRPs, life
insurance
contracts,
commercial
annuities, and
endowment
contracts. QRPs
include IRC
'401(a), including
'401(k), '403(a)
and (b), and
governmental '457
plans.
Applies to
nonperiodical
payments such as
lump sums from
QRPs, life insurance
contracts, commercial
annuities, and
endowment contracts,
and to all taxable IRA
distributions.
tables. See
http://revenue.delaware.gov/services/
wit_folder/section12.shtml
Current withholding tables can be
found at
http://revenue.delaware.gov/services/
wit_folder/section24.shtml
District of
Where withholding is required, it shall be
Columbia (as of at the highest District individual income
11/10/2013)
tax rate which is in effect at the time of
distribution. As of the date of this notice,
the highest DC income tax rate is 8.95%.
See FR 230.
[Subsection (f) of D.C. Official Code §
47-1812.08]
The Fiscal Year 2013 Budget Support
Act of 2012, enacted June 22, 2012,
effective after a 30-day congressional
review period, made permanent the
requirement to withhold on lump-sum
distributions that are the payee’s entire
account balance if not made through a
trustee-to-trustee transfer.
Minimum
Percentage
Rate
Minimum
Dollar
Amount
Comments
Authority with
Hyperlink
required unless the
recipient specifically
elects not to have the
tax withheld. Delaware
has no such
requirement, but State
tax may be withheld
from such payments if
the recipient voluntarily
requests State
withholding. An
annuitant, who has
elected to have federal
tax withheld, may either
elect to have state tax
withheld or elect not to
have state tax withheld.
An annuitant who has
filed Federal Form W-4P
may also request State
Income Tax withholding.
See FR 230 at
http://otr.cfo.dc.gov/nod
e/499192
There are many forms
of lump sum payments
that could be considered
a pay out of a payee’s
And see details at
entire account balance if
http://newsroom.dc.gov/
not made through a
show.aspx/agency/otr/s
trustee-to-trustee
ection/2/release/23108/y transfer, including the
ear/2012
cash out of an IRA CD,
or the reversal of a
Cokala has received
traditional IRA
confirmation from the
contribution. Cokala has
agency that the new
developed a list of
withholding provisions will queries on these
only attach to total
matters and is in
account distributions.
discussion with the
Where the resident payee agency on their
Other Authority
rate is applicable to
taxable income over
$60,000. It was
scheduled to decrease
to the pre-2010 level of
5.95%, but was changed
by legislative action. [DE
HB 50 (2013)]
Current withholding
tables can be found at
http://revenue.delaware.
gov/services/wit_folder/s
ection24.shtml
State
Periodical
Calculation
Nonperiodical
Calculation
Applies to
periodical
payments from
QRPs, life
insurance
contracts,
commercial
annuities, and
endowment
contracts. QRPs
include IRC
'401(a), including
'401(k), '403(a)
and (b), and
governmental '457
plans.
Applies to
nonperiodical
payments such as
lump sums from
QRPs, life insurance
contracts, commercial
annuities, and
endowment contracts,
and to all taxable IRA
distributions.
Minimum
Percentage
Rate
Minimum
Dollar
Amount
://newsroom.dc.gov/show.aspx?agency
=otr&section=2&release=23108&year=2
012&file=file.aspx%2frelease%2f23108
%2fWH%2520Retirement%2520Plan%2
520Distribution%2520Revision.
See Table 1 for the full requirements, list
of plans requiring withholding, as well as
application to residents.
Florida
Georgia (as of
05/17/2013)
Comments
Authority with
Hyperlink
still has funds in its
account after a partial
distribution, the partial
payment is not subject to
DC withholding. Only if
the entire account
balance is distributed will
the payment be subject to
DC withholding before
taking any fees or other
deductions. See OTR
Notice 2012-02, District of
Columbia Office of Tax
and Revenue, February
24, 2012. See next
column on matters still
open.
[Subsection (f) of D.C.
Official Code § 471812.08]
treatment. For the
present, all we have to
work from is the
agency's notice at
http://newsroom.dc.gov/
show.aspx?agency=otr&
section=2&release=231
08&year=2012&file=file.
aspx%2frelease%2f231
08%2fWH%2520Retire
ment%2520Plan%2520
Distribution%2520Revisi
on.pdf
Should additional
information be gathered,
we plan to post it in our
tables and in our news
bulletins.
Other Authority
For additional
information, please
contact the Office of Tax
and Revenue’s
Customer Service
Administration at (202)
727-4TAX(4829).
No state income tax
Use G 4P
specified
allowances and
marital status to
access
percentage
method or wage
tables found in
Upon the election
by a payee of any
non-periodic
payment or
distribution from a
pension, annuity
or similar fund, the
payor shall
To measure
minimum
withholding on
non-periodic
distributions,
use the
supplemental
rate table that
Legislation has been
enacted that phases in
the Georgia personal
income taxation of
retirement income
beginning with the 2012
tax year for those 62
and older. The personal
https://etax.dor.ga.gov/i
nctax/withholding/TSD_
Withholding_from_Pensi
ons_and_Annuities_G4
P.pdf
Wage tables and
percentage method can
O.C.G.A. §§48-7100(8.1), 48-7-101(h),
48-7-101(j), 48-7-102;
and Reg 560-7-8-.32.
State
Periodical
Calculation
Nonperiodical
Calculation
Applies to
periodical
payments from
QRPs, life
insurance
contracts,
commercial
annuities, and
endowment
contracts. QRPs
include IRC
'401(a), including
'401(k), '403(a)
and (b), and
governmental '457
plans.
Applies to
nonperiodical
payments such as
lump sums from
QRPs, life insurance
contracts, commercial
annuities, and
endowment contracts,
and to all taxable IRA
distributions.
Employer
Withholding
Guide at
https://etax.dor.g
a.gov/taxguide/2
013_Employers_
tax_guide_0211
2013.pdf .
withhold from
such payment the
amount specified
by the payee, but
in no event shall
the amount
withheld be less
than the amount
which would be
required to be
withheld if such
payment were a
payment of wages
by an employer to
an employee for
the appropriate
payroll period.
[O.C.G.A. § 48-7128]
To measure
minimum
withholding on
non-periodic
distributions, use
the bonus rate
table that applies
to bonus wages:
Under $8,000 =
2% of taxable;
$8,000 - 10,000 =
3% of taxable;
$10,001 - 12,000
= 4% of taxable;
$12,001 -15,000 =
Minimum
Percentage
Rate
Minimum
Dollar
Amount
Comments
Authority with
Hyperlink
applies to
bonus wages.
income retirement
exclusion amount has
been capped at $65,000
for taxpayers 65 years
of age or older and
$35,000 for certain
taxpayers between ages
62 and 65, or if
permanently and totally
disabled for tax years
beginning on or after
January 1, 2012. [H.B.
1055, Laws 2010,
effective May 12, 2010;
modified by H.B. 386,
Laws 2012, effective
January 1, 2013] This
may affect the way that
taxpayers complete G
4P.
be found at
https://etax.dor.ga.gov/t
axguide/2013_Employer
s_tax_guide_02112013.
pdf
Bonus rate
table:
Under $8,000
= 2% of
taxable;
$8,000 10,000 = 3%
of taxable;
$10,001 12,000 = 4%
of taxable;
$12,001 15,000 = 5%
of taxable;
over $15,000
= 6% of
taxable
https://etax.do
r.ga.gov/taxgu
ide/2013_Emp
loyers_tax_gui
de_02112013.
pdf
For 2013, the only
withholding table that
changed was the
standard deduction and
personal allowance
table.
Other Authority
State
Periodical
Calculation
Nonperiodical
Calculation
Applies to
periodical
payments from
QRPs, life
insurance
contracts,
commercial
annuities, and
endowment
contracts. QRPs
include IRC
'401(a), including
'401(k), '403(a)
and (b), and
governmental '457
plans.
Applies to
nonperiodical
payments such as
lump sums from
QRPs, life insurance
contracts, commercial
annuities, and
endowment contracts,
and to all taxable IRA
distributions.
Minimum
Percentage
Rate
Minimum
Dollar
Amount
Comments
Authority with
Hyperlink
Other Authority
Payments are exempt
from withholding if paid:
- from a trust which is
exempt from tax at the
time of such payment,
unless such payment is
made to an employee of
the trust as
remuneration for
services rendered as an
employee, or
- to an employee or
beneficiary under an
annuity plan (i.e., one
which at the time of
such payment is a plan
described in IRC
§403(a)).
http://www6.hawaii.gov/t
ax/2011/n196.pdf
On February 28, 2013,
Cokala received an
email from HI DOT that
the taxpayer is
responsible for
estimated tax payments
on the IRA distributions
taxable to the State of
Hawaii. There is no
withholding
responsibility on the part
of payers.
5% of taxable;
over $15,000 =
6% of taxable
https://etax.dor.ga
.gov/taxguide/201
3_Employers_tax
_guide_02112013
.pdf
Hawaii
(as of
02/28/2013)
On February 28,
2013, Cokala
received an email
from HI DOT that
the taxpayer is
responsible for
estimated tax
payments on the
IRA distributions
taxable to the
State of Hawaii.
There is no
withholding
responsibility on
the part of payers.
Compensation received
in the form of a pension
for past services is
expressly excluded from
withholding base. HI
Form N-196 does not
identify state withholding
amounts from Form
1099-R; it could be
http://www.state.hi.us/ta
x/pubs/12bklta.pdf
State
Periodical
Calculation
Nonperiodical
Calculation
Applies to
periodical
payments from
QRPs, life
insurance
contracts,
commercial
annuities, and
endowment
contracts. QRPs
include IRC
'401(a), including
'401(k), '403(a)
and (b), and
governmental '457
plans.
Applies to
nonperiodical
payments such as
lump sums from
QRPs, life insurance
contracts, commercial
annuities, and
endowment contracts,
and to all taxable IRA
distributions.
Minimum
Percentage
Rate
Minimum
Dollar
Amount
Comments
Authority with
Hyperlink
Other Authority
concluded that state
withholding is not
available in Hawaii.
Idaho (as of
5/16/2013)
Illinois (as of
04/03/2013)
Treated as wage withholding.
Idaho allows for 3 methods of
calculating withholding:
•
Percentage Computation;
•
Wage Bracket Method;
•
Annualized Wage Method
and allows a flat rate of 7.4% on
supplemental wages.
Rounded to nearest $
Subtract any exemptions claimed on Il
W-4 from the distribution and multiply
the result by 5 percent. Can use tax
tables: find the number of allowances
claimed on Line 1 of Form IL-W-4 and
pull the withholding amount from the
tables based on amount paid under
column of allowances claimed.
Withholding is voluntary
upon agreement
between the payer and
the payee. IL W-4 to be
used. Illinois does not
require a separate
agreement for payments
covered by a federal
voluntary withholding
agreement. If
On May 14, 2013, Idaho
for the second time this
year again released
2013 withholding tables
at
http://tax.idaho.gov/pubs
/EPB00006_05-142013.pdf to reflect
changes to the different
computation methods
due to inflation
adjustments. In March,
2013, tables were
adjusted to reflect the
annual exemption which
is now $3,900. Payers
are not required to
adjust the withholding
for the months prior to
receiving the new
tables.
For new tables effective
in 2013 released on
May 14, 2013, see
http://tax.idaho.gov/pubs
/EPB00006_05-142013.pdf
See also withholding
information at
http://tax.idaho.gov/i1026.cfm
http://www.revenue.stat
e.il.us/Publications/Pubs
/Pub-130.pdf
For tables and how to
calculate withholding
from IL W-4 see
http://www.revenue.stat
e.il.us/taxforms/Withhold
ing/IL-700-T.pdf
Illinois Department of
Revenue Reg. IITA
100.7070
The Illinois income tax
rate for individuals was
increased from 3 % to 5
%, effective from
January 1, 2011 through
tax year 2014. See
State
Periodical
Calculation
Nonperiodical
Calculation
Applies to
periodical
payments from
QRPs, life
insurance
contracts,
commercial
annuities, and
endowment
contracts. QRPs
include IRC
'401(a), including
'401(k), '403(a)
and (b), and
governmental '457
plans.
Applies to
nonperiodical
payments such as
lump sums from
QRPs, life insurance
contracts, commercial
annuities, and
endowment contracts,
and to all taxable IRA
distributions.
Minimum
Percentage
Rate
Minimum
Dollar
Amount
Comments
Authority with
Hyperlink
requested by a payee,
you can enter into a
voluntary agreement
and withhold Illinois
Income Tax on
individual retirement
accounts (IRAs) or
pensions.
Indiana
(as of
10/03/2013)
Payee shall specify a flat whole dollar
amount for state and separately, for
county taxes to be withheld.
$10
State's requirement to
withhold once payee
requests extends to
local taxes. The payer
is not required to
withhold state income
tax from a payment if
the amount to be
withheld is less than $10
or if the amount to be
withheld would reduce
the payment to less than
$10.
Other Authority
http://www.revenue.stat
e.il.us/Businesses/Withh
oldingFAQs.htm.
[S.B. 2505, as passed
by the Illinois
Legislature, January 12,
2011]
Indiana Dept. of Rev.
Information Bulletin #52;
http://www.in.gov/dor/ref
erence/bulletins/income/
pdf/ib52.pdf
"Withholding
Instructions for Indiana
State and County
Income Taxes" at
http://www.in.gov/dor/ref
erence/files/dn01.pdf
The personal income
tax rate is reduced for
tax years beginning after
December 31, 2014, to
3.3% from the current
3.4%, and after
December 31, 2016, the
rate decreases to
3.23%. [P.L. 205, H.B.
1001 (2013)]
This publication
frequently changes.
Caution is warranted to
check the website to
make use the version
you are using is current.
Iowa (as of
10/24/2013)
Payers have the option of withholding
at the rate of 5% or using the
published withholding formulas or
withholding tables at
http://www.state.ia.us/tax/forms/44001.
pdf.
DOR has announced no Change to
Iowa Withholding Tables for 2014.
The current tables,
which became effective
April 1, 2006, remain
valid through 2014.
http://www.iowa.gov/tax/
forms/withhold.html?gob
ack=.gde_4307305_me
mber_57988214578867
32290#! See
http://www.iowaccess.or
g/tax/educate/78552.ht
ml#yestax
See IA W-4P at
http://www.iowa.gov/tax/
forms/1344020.pdf
I.A.C.. §§701-46.1, 46.3.
Note: Iowa has not
updated the withholding
guide since 2006. 2006
tables remain valid
through 2014. See
http://www.iowa.gov/tax/
forms/withhold.html?gob
State
Periodical
Calculation
Nonperiodical
Calculation
Applies to
periodical
payments from
QRPs, life
insurance
contracts,
commercial
annuities, and
endowment
contracts. QRPs
include IRC
'401(a), including
'401(k), '403(a)
and (b), and
governmental '457
plans.
Applies to
nonperiodical
payments such as
lump sums from
QRPs, life insurance
contracts, commercial
annuities, and
endowment contracts,
and to all taxable IRA
distributions.
Payers are to continue to use the
current tables, which became effective
April 1, 2006. See
http://www.iowa.gov/tax/forms/withhold
.html?goback=.gde_4307305_member
_5798821457886732290#!
Iowa withholding is not required when
distributions fall below certain levels
(see comments column), when
payments are not subject to Iowa
income tax, or when no federal income
tax withholding is required. See
instructions to IA W-4P at
http://www.iowa.gov/tax/forms/134402
0.pdf
See also,
http://www.iowa.gov/tax/educate/7855
2.html#yestax
Minimum
Percentage
Rate
Minimum
Dollar
Amount
Comments
withholding tables at
http://www.state.ia.us/ta
x/forms/44001.pdf
Rounded to nearest $. If
payee is an Iowa
resident and the taxable
portion of payee's
annual distribution is
greater than $6,000
($12,000 married Iowa
filers), Iowa tax must be
withheld if federal tax is
being withheld unless
the payee qualifies for
the low income
exemption described in
the instructions in IA W4P. Payee must provide
the IA W-4P to claim
exemption.
A partial exemption is
provided for pensions,
annuities, self-employed
retirement plans,
deferred compensation,
IRA distributions, and
other retirement benefits
to qualified individuals.
To qualify the recipient
must be 55 years of age
or older, disabled or a
surviving spouse of an
individual who would
have qualified. The
exemption is up to
$12,000 for a joint filing
status and up to $6,000
Authority with
Hyperlink
Other Authority
ack=.gde_4307305_me
mber_57988214578867
32290#!
State
Periodical
Calculation
Nonperiodical
Calculation
Applies to
periodical
payments from
QRPs, life
insurance
contracts,
commercial
annuities, and
endowment
contracts. QRPs
include IRC
'401(a), including
'401(k), '403(a)
and (b), and
governmental '457
plans.
Applies to
nonperiodical
payments such as
lump sums from
QRPs, life insurance
contracts, commercial
annuities, and
endowment contracts,
and to all taxable IRA
distributions.
Minimum
Percentage
Rate
Minimum
Dollar
Amount
Comments
for all other filing
statuses. Eligible
recipients should
complete the IA W-4P to
claim exemption.
An Iowa resident may
also choose to have
Iowa tax withheld on the
exempted annual
taxable amount, $6,000
($12,000 if married)
through submitting an IA
W-4P. If no choice is
made on the IA W-4P,
payers can
automatically exempt
the $6,000 if the payee
appears qualified.
State income tax is not
required to be withheld if
the amount of the
distribution is $500 per
month or less or if the
taxable amount is $500
or less and the person
receiving the distribution
is eligible for the partial
exemption of retirement
benefits. In instances
where the distribution
amount or the taxable
amount is more than
$500 per month but less
than $6,000 for the year,
no state income tax is
required to be withheld,
if the person receiving
Authority with
Hyperlink
Other Authority
State
Periodical
Calculation
Nonperiodical
Calculation
Applies to
periodical
payments from
QRPs, life
insurance
contracts,
commercial
annuities, and
endowment
contracts. QRPs
include IRC
'401(a), including
'401(k), '403(a)
and (b), and
governmental '457
plans.
Applies to
nonperiodical
payments such as
lump sums from
QRPs, life insurance
contracts, commercial
annuities, and
endowment contracts,
and to all taxable IRA
distributions.
Minimum
Percentage
Rate
Minimum
Dollar
Amount
Comments
Authority with
Hyperlink
Other Authority
the distribution is eligible
for a partial exemption
of retirement benefits.
[Reference 707-46.2(1)c
Iowa Administrative
Code.]
Kansas
(10/30/2013)
Effective January 1, 2013, if the
federal withholding is a percentage (as
is the case with withholding under IRC
§3405 on retirement distributions) the
Kansas rate is 4.5% (down from 5% in
2012) of the payment.
A percentage method or wage tables
may also be used but require K-4 from
payee.
Generally withhold 4.5%
(down from 5% in 2012)
whenever there is
federal withholding on
the distribution unless
payee elects differently
on K-4. Where
withholding is voluntary
for federal purposes, it is
also voluntary for
Kansas purposes.
Effective in 2013, the
supplement wage rate
was reduced from 5% to
4.5% (thus the reduction
in percentage-method
withholding on
retirement distributions
noted above). The older
three-bracket structure
for personal income
taxes (3.5%, 6.25%, and
6.45%) was also shifted
to a two-bracket system
using rates of 3.0% and
4.9%. These amounts
will now change for
2014 and again for
2015, 2016 and 2017.
See next column.
Withholding tables for
2013 and 2014 are
contained in the
applicable year’s KW100. See tables and
KW-100 at
http://www.ksrevenue.or
g/forms-btwh.html#pub
CAUTION: New
legislation has passed
that would implement a
new series of personal
income tax rate cuts
beginning in tax year
2014, when the current
bottom bracket of 3%
would be reduced to
2.7%; and then further
reduced to 2.4%
beginning in tax year
2016. The current top
bracket of 4.9% will be
reduced to 4.8% in
2014, then in 2015 it
would further reduce to
4.6%. In 2017 the rates
will be 2.3% and 4.6%,
and in 2018, 2.3% and
3.9%. Additionally, the
legislation provides a
formula for additional
K.S.A.. §§79-32,100a,
79-3295, 79-3296
State
Periodical
Calculation
Nonperiodical
Calculation
Applies to
periodical
payments from
QRPs, life
insurance
contracts,
commercial
annuities, and
endowment
contracts. QRPs
include IRC
'401(a), including
'401(k), '403(a)
and (b), and
governmental '457
plans.
Applies to
nonperiodical
payments such as
lump sums from
QRPs, life insurance
contracts, commercial
annuities, and
endowment contracts,
and to all taxable IRA
distributions.
Minimum
Percentage
Rate
Minimum
Dollar
Amount
Comments
Standard deductions
were lowered
retroactively for 2013 to
$7,500 for married filing
jointly and to $5,500 for
single head of
household. But, the
standard deduction for
single taxpayers
remains unchanged at
$3,000. Although the
standard deduction was
increased for single
head-of-household filers
to $9,000 (from $4,500)
and for married
taxpayers filing jointly to
$9,000 (from $6,000) by
H.B. 2117 in 2012, new
HB 2059 passed June
1, 2013, has now
retroactively changed
these amounts.
Authority with
Hyperlink
Other Authority
rate relief beginning in
tax year 2019. Tables
will probably be
changing each year for
the next few years.
Withholding tables for
2013 and 2014 are
contained in the
applicable year’s KW100. See tables and
KW-100 at
http://www.ksrevenue.or
g/forms-btwh.html#pub
Kentucky (as of
04/17/2013)
Even though withholding is voluntary,
and both parties agree to withhold,
there may be only one way to effect
withholding. Payers are required to
compute the amount of state income
tax to be withheld using either the
Withholding is voluntary,
but no instructions are
given apart from the use
of the tables and
formula
Links to Computer
formula and wage tables
for 2013 as well as link
to archived 2012
formula and tables can
be found at
Withholding is voluntary.
Agency has not given
guidance on specifics
apart from treatment
under the wage
withholding rules that
State
Periodical
Calculation
Nonperiodical
Calculation
Applies to
periodical
payments from
QRPs, life
insurance
contracts,
commercial
annuities, and
endowment
contracts. QRPs
include IRC
'401(a), including
'401(k), '403(a)
and (b), and
governmental '457
plans.
Applies to
nonperiodical
payments such as
lump sums from
QRPs, life insurance
contracts, commercial
annuities, and
endowment contracts,
and to all taxable IRA
distributions.
Minimum
Percentage
Rate
Minimum
Dollar
Amount
Comments
wage-bracket tables or the computer
formula.
Authority with
Hyperlink
Other Authority
http://revenue.ky.gov/wh
t/
apply to employers. It
does appear that if you
withhold, you will need
to follow compliance
instructions in the
Employer's Withholding
Guide for wages and
use the formula or
tables for withholding
calculations. Kentucky
does not offer a fixed
supplemental
withholding rate.
[See 103 KAR 18:110,
Kentucky Department of
Revenue, effective April
2, 2010.]
After 2013, KY personal
credits in lieu of the
personal exemption are
reduced from $20 to $10
for single and married
taxpayers filing joint or
separate returns, and
for dependents.
Withholding tables will
change for 2014.
[H.B. 440, 2013]
KY computer formula instructions and
employer guide say that no other
formula or method may be used
without the specific written approval of
the Department of Revenue. See
http://revenue.ky.gov/NR/rdonlyres/10
031437-78E2-4567-A7584A2E88C99971/0/WEB_201342A003
T_ComputerFormula.pdf and
http://www.revenue.ky.gov/NR/rdonlyr
es/07644FF8-0204-48F2-B7814720C38006C4/0/42A003811rev9211.
pdf
Use of tables or the formula will
necessitate payee providing a Form K4, the standard certificate that
authorizes an employer to withhold KY
income tax from an employee based
on the exemptions claimed. See K-4 at
http://revenue.ky.gov/NR/rdonlyres/69
0434A9-D933-4F06-82286C70D441A8E0/0/42A8041110.pdf
Louisiana
(as of
12/23/2012)
Louisiana Administrative Code
61:I.1501 provides income tax
withholding tables to be used for
computing the proper amount to be
withheld based on the employees
income, filing status, and number of
exemptions and requires use formula
to compute the withholding. Agency
suggests payee should provide L-4 to
payer to access the withholding tables
and formula. See L-4 for payee at
Withholding is voluntary,
but no instructions are
given apart from the use
of the tables and
formula
Tables and formula are
at
http://www.revenue.louis
iana.gov/sections/busine
ss/withholding.aspx#Rat
e
And at
http://www.revenue.louis
iana.gov/forms/publicatio
ns/1306%281_12%29TF
.pdf
State
Periodical
Calculation
Nonperiodical
Calculation
Applies to
periodical
payments from
QRPs, life
insurance
contracts,
commercial
annuities, and
endowment
contracts. QRPs
include IRC
'401(a), including
'401(k), '403(a)
and (b), and
governmental '457
plans.
Applies to
nonperiodical
payments such as
lump sums from
QRPs, life insurance
contracts, commercial
annuities, and
endowment contracts,
and to all taxable IRA
distributions.
Minimum
Percentage
Rate
Minimum
Dollar
Amount
Comments
Authority with
Hyperlink
Other Authority
http://revenue.louisiana.gov/forms/taxf
orms/1300%284_11%29F.pdf
See
http://www.revenue.louisiana.gov/form
s/publications/1306%281_12%29TF.p
df and
http://www.revenue.louisiana.gov/secti
ons/business/withholding.aspx
Withholding is voluntary, but no
instructions are given apart from the
use of the tables and formula .
Maine (as of
06/27/2013)
If federal
withholding or if
no federal
withholding and
voluntarily elect
Maine withholding,
use wage tables
following wage
method. If no W4P and no W4ME, withhold
based on single
status and no
allowances.
Where there is
10% or 20% flat
federal
withholding, Maine
withholding of 5%
is required.
5% on lump sums,
IRAs and 401(k)
distributions.
Rounded to
nearest $
See tables and
withholding instructions
for 2013 at
http://www.maine.gov/re
venue/forms/with/2013/1
3_whtables.pdf
See 36 MRSA Chapter
827 (sections 5250
through 5255-B)
.
See 2012 MRS
withholding tables and
formula at
http://www.maine.gov/re
venue/forms/with/2012/1
2_whtables.pdf and
http://www.maine.gov/re
venue/forms/with/2012/1
2_whtabsup.pdf
The Maine Legislature
has overridden Gov. Paul
Le Page’s veto of a
budget bill. Under the
new Maine legislation
Maine law was decoupled
from the larger federal
standard deduction for
joint filers permanently
enacted as part of the
federal American
Taxpayer Relief Act of
2012 for income tax years
beginning in 2013, the
inflation adjustment was
suspended for Maine
personal income tax
brackets for tax years
beginning in 2014 and
2015 and the inflation
adjustment calculation for
tax years beginning after
2015 is now to be based
on the Chained Consumer
Price Index instead of the
State
Periodical
Calculation
Nonperiodical
Calculation
Applies to
periodical
payments from
QRPs, life
insurance
contracts,
commercial
annuities, and
endowment
contracts. QRPs
include IRC
'401(a), including
'401(k), '403(a)
and (b), and
governmental '457
plans.
Applies to
nonperiodical
payments such as
lump sums from
QRPs, life insurance
contracts, commercial
annuities, and
endowment contracts,
and to all taxable IRA
distributions.
Minimum
Percentage
Rate
Minimum
Dollar
Amount
Comments
Authority with
Hyperlink
Other Authority
Consumer Price Index, as
well as changed
numerous other items
were changed. These
changes may cause the
agency to adjust the
withholding tables. [H.P.
1079, June 13, 2013]
Maryland
(as of
12/24/2012)
Withholding amounts are specified by
taxpayer on MW 507P. Withholding
must be a whole dollar amount and at
least $5 per month. For an ERD paid to
MD resident subject to mandatory 20%
federal withholding, MD mandatory
withholding is also required at 7.75%.
Although new legislation increased the
highest marginal rate to 5.75%, making
the new supplemental wage withholding
that amount plus 3% (8.75%), the new
employer guide says to withhold 7.75%
on ERDs following AR 41.
For ERDs,
7.75%; for all
other
distributions
whatever is
specified by
payee on MW
507P.
Although new
legislation
increased the
highest marginal
rate to 5.75%,
making the new
supplemental
wage
withholding that
amount plus 3%
(8.75%), the
new employer
guide says to
withhold 7.75%
on ERDs
following AR 41.
$5 minimum
Although new legislation
increased the highest
marginal rate to 5.75%,
making the new
supplemental wage
withholding that amount
plus 3% (8.75%), the
new employer guide
says to withhold 7.75%
on ERDs following AR
41. For all other
distributions, withhold
whatever is specified by
payee on MW 507P.
See Administrative
Release 41 at
http://www.marylandtax
es.com/publications/bull
etins/it/ar_it41.pdf
Maryland enacted an
increase in the top
personal income tax
rate for 2012 and
changes in some of the
income tax brackets.
[SB 1302, Laws 2012]
The new top rate of
state individual income
tax is 5.75 percent,
applicable to Maryland
taxable income in
excess of $250,000 for
an individual, or in
excess of $300,000 for
spouses filing a joint
return, a surviving
spouse, or a head of
household. The
previous top rate was
5.5 percent.
Maryland Code Ann.,
Tax §§10-905(c), 10907(b)
Link to Maryland
Department of Revenue
"Maryland Employer
Withholding Guide" at
http://business.maryland
taxes.com/taxinfo/withho
lding/default.asp
The mandatory
withholding only applies
to an eligible rollover
distribution within the
meaning of §3405(c) of
the Internal Revenue
Code, subject to
mandatory withholding
of federal income tax at
20% and received by a
domiciliary or statutory
resident of Maryland.
State
Massachusetts
(as of
12/24/2012)
Periodical
Calculation
Nonperiodical
Calculation
Applies to
periodical
payments from
QRPs, life
insurance
contracts,
commercial
annuities, and
endowment
contracts. QRPs
include IRC
'401(a), including
'401(k), '403(a)
and (b), and
governmental '457
plans.
Applies to
nonperiodical
payments such as
lump sums from
QRPs, life insurance
contracts, commercial
annuities, and
endowment contracts,
and to all taxable IRA
distributions.
The amount of income tax withheld is
based on the taxable portion of the
distribution, the number of exemptions
claimed, and any additional
withholding amounts requested on M4P. See table 3.There are 4 steps to
the calculation. From the recipient's
total taxable payment::
1. Subtract the total of the exemption
factors for the applicable period.
If “0” exemptions claimed or no M-4P,
omit this step.
a. Monthly: $83 multiplied by number
of exemptions claimed, plus
$284.
b. Quarterly: $250 multiplied by
number of exemptions claimed, plus
$850.
c. Semiannually: $500 multiplied by
number of exemptions claimed,
plus $1,700.
d. Annually: $1,000 multiplied by
number of exemptions claimed,
plus $3,400.
2. If the recipient will file as head of
household on their tax return,
add to the amount computed in step 1
and subtract the total from the
payment: monthly: $200; quarterly:
$600; semiannually: $1,200; annually:
$2,400.
3. If the recipient and/or spouse is
blind, for each blind person add to
the amount computed in steps 1 and
2, if applicable, and subtract the
total from the payment: monthly: $183;
Minimum
Percentage
Rate
If a recipient
does not file
Form M-4P with
the payer,
Massachusetts
withholding
should be based
on “0”
exemptions. In
such cases,
5.25% of each
payment should
be withheld from
January 1
through
December 31 of
the calendar
year.
Minimum
Dollar
Amount
Comments
Authority with
Hyperlink
Only the Massachusetts
Income Tax Withholding
System Percentage
Methods for Pensions
can be used. The
definition of wages for
Massachusetts
withholding purposes
includes periodic
payments and
nonperiodic distributions
as defined in IRC §
3405 and subject to
federal withholding...."
G.L. c. 62B, § 1.
See Cir. M at
http://www.mass.gov/do
r/docs/dor/forms/wagerpt/pdfs/circ-m12.pdf
From the federal
amount adjustments
may be necessary. Any
portion of a distribution
that the recipient could
exclude from income
because it represents
either the employee's
nondeductible
contributions to the plan
or the annuitant's
investment in the
contract is not subject to
withholding. The amount
of the distribution that is
taxable in
Massachusetts will differ
from the federal taxable
amount if the
Massachusetts
treatment of
contributions differs from
federal treatment.
See general instructions
at
http://www.mass.gov/do
r/businesses/currenttax-info/guide-to-trusteetaxes/withholdingtax.html#CalPensions
Other Authority
M.G.L.. c. 62B §§1-12;
830 CMR 62B.2.1
State
Michigan (as of
10/02/2013)
Periodical
Calculation
Nonperiodical
Calculation
Applies to
periodical
payments from
QRPs, life
insurance
contracts,
commercial
annuities, and
endowment
contracts. QRPs
include IRC
'401(a), including
'401(k), '403(a)
and (b), and
governmental '457
plans.
Applies to
nonperiodical
payments such as
lump sums from
QRPs, life insurance
contracts, commercial
annuities, and
endowment contracts,
and to all taxable IRA
distributions.
Minimum
Percentage
Rate
Minimum
Dollar
Amount
Comments
quarterly: $550; semiannually:
$1,100; annually: $2,200.
4. After subtracting the amounts
specified in steps 1, 2 and/or 3 from
the recipient’s total payment, multiply
the result by .0525 and withhold
the resulting amount.
See
http://www.mass.gov/dor/docs/dor/for
ms/wage-rpt/pdfs/circ-m12.pdf
Amounts contributed to
traditional IRAs for
which no Massachusetts
personal income tax
deduction was
previously allowed will
not be subject to tax
when the IRA is
distributed or converted
to a Roth IRA so
adjustments will be
required. See table 1.
Withholding
depends on the
age of the recipient
(3 categories: born
before 1946, born
1946-through
1952, born after
1952) and receipt
of required MI W4P. Pension
withholding tables
are only for those
born after 1946
through 1952.
General wage
tables are to be
used for those born
after 1952 and for
those receiving
New rates and PE
amounts: HB 5699
reduced the withholding
rate from 4.35% to
4.25% effective on
October 1, 2012. The
final version of H.B. 5700
also enacted into law
changes the personal
exemption (PE) on
October 1, 2012, and
before January 1, 2014,
to $3,950.00 from
$3,700. Beginning on
and after January 1,
2014 and each year after
2014, the personal
exemption is $4,000.00.
Tables have been
Withholding
depends on the age
of the recipient (3
categories: born
before 1946, born
1946-through 1952,
born after 1952) and
receipt of required
MI W-4P.
In FAQ 5 under
“Withholding
Information for
Pensions, Annuities
and other
Retirement
Payments” on the
agency's website at
http://www.michigan
Authority with
Hyperlink
2013 pension and wage
withholding tables and
2013 announcement:
http://www.michigan.gov
/taxes/0,4676,7-23843531_61039-155476-,00.html
Withholding instructions
and FAQs:
http://www.michigan.gov
/taxes/0,4676,7-23843531_61041---,00.html
2013 withholding Tax
Guide at
http://www.michigan.gov
/documents/taxes/446_
WithholdingGuide_4033
Other Authority
[ §703(1) of new PA 38
of 2011 (H.B. 4361);
M.C.L. 206.51a]
See discussion in Table
1 and 3.
State
Periodical
Calculation
Nonperiodical
Calculation
Applies to
periodical
payments from
QRPs, life
insurance
contracts,
commercial
annuities, and
endowment
contracts. QRPs
include IRC
'401(a), including
'401(k), '403(a)
and (b), and
governmental '457
plans.
Applies to
nonperiodical
payments such as
lump sums from
QRPs, life insurance
contracts, commercial
annuities, and
endowment contracts,
and to all taxable IRA
distributions.
distributions funded
by elected
deferrals such as
401(k), 403(b) and
457 plans.
Withholding applies
starting in 2012 to
payments from
pensions; IRAs and
individual
retirement
annuities; profitsharing, stock
bonus, and other
deferred
compensation
plans; and
annuities,
endowments and
life insurance
contracts issued by
a life insurance
company. See
http://www.michiga
n.gov/taxes/0,4676
,7-23843531_61041--,00.html and
http://www.michiga
n.gov/documents/t
axes/446_370048_
7.pdf
Three categories of
recipients:
- Born before 1946:
benefits from
private sources
may be exempt up
.gov/taxes/0,4676,7
-238-43513_59451263747--,00.htm , a
onetime distribution
from a retirement
plan or IRA is only
subject to Michigan
pension withholding
if the taxable
distribution exceeds
the exemption
allowance for the
number of personal
exemptions claimed
on line 6 of the MI
W-4P. The 2013
withholding guide at
http://www.michigan
.gov/documents/tax
es/446_Withholding
Guide_403367_7.p
df says if benefits
are paid other than
monthly,
withholding is only
due on the amount
that exceeds the
recipients’
deduction amount.
Cokala has
confirmed with
agency that the
information in FAQ
5 relates specifically
to taxable
distributions. It does
not apply to
recipients whose
distributions are not
Minimum
Percentage
Rate
Minimum
Dollar
Amount
Comments
Authority with
Hyperlink
released to reflect the
new rates and PE. See
http://www.michigan.gov/
taxes/0,4676,7-23843531_61039-155476-,00.html
67_7.pdf
Michigan 2012 Pension
Withholding Guide at
http://www.michigan.gov
/documents/taxes/2012_
Pension_Withholding_G
uide_365268_7.pdf
Recipients may only
opt out of withholding
tax if they believe they
will not have a balance
due on MI-1040 and
provide payers with an
MI W-4P marking box 1.
Early and elective
deferral plan
distributions have
special withholding
rules: Payments received
before the recipient could
retire under the provisions
of the plan or benefits
from 401(k), 457, or
403(b) plans attributable to
employee contributions
alone are not qualifying
pension and retirement
benefits under Michigan
law and are subject to
withholding. Since the
pension withholding tables
take pension exemptions
into consideration, the
pension tables may not be
used for these
distributions even if the
payee was born in 1946
through 1952. If
See also Order, In Re
Request for Advisory
Opinion Regarding
Constitutionality of 2011
PA 38, Michigan
Supreme Court, Docket
No. 143157, June 15,
2011]
Other Authority
State
Periodical
Calculation
Nonperiodical
Calculation
Applies to
periodical
payments from
QRPs, life
insurance
contracts,
commercial
annuities, and
endowment
contracts. QRPs
include IRC
'401(a), including
'401(k), '403(a)
and (b), and
governmental '457
plans.
Applies to
nonperiodical
payments such as
lump sums from
QRPs, life insurance
contracts, commercial
annuities, and
endowment contracts,
and to all taxable IRA
distributions.
to $48,302 for
single/ married
filing separate filers
and $96,605 for
married filing
jointly. Excess is
withholdable, but
requires MI W-4P.
See
http://www.michiga
n.gov/taxes/0,4676
,7-23843531_61039155476--,00.html
taxable. As such, it
would not generally
apply to recipients
born before 1946
who check box 2,
unless total annual
distributions will
exceed the
deduction amount
for private pension
caps of $48,302 for
single filers or
$96,605 for married
filers, or to
recipients born in
- Born during the
1946 through 1952
period 1946
who check box 3
through 1952: the unless total annual
first $20,000 if
distributions exceed
single or married
deduction amounts
filing separately (or of $20,000 for
$40,000 if married single or married
filing jointly) of
filing separate
public and private taxpayers, or
pension income is $40,000 if married
exempt. (Different filing a joint return.
exemption
The deduction
amounts for
amounts are annual
payees born 1947 and not per
through 1952 who distribution. Those
receive public
born after 1952
retirement benefits have no
from an agency
subtractions
exempt from the
allowed from
Social Security
retirement income,
Act, who may
making all
exempt $35,000 for payments taxable,
single filers or
but may provide PE
$55,000 for joint
in line 6 that will
Minimum
Percentage
Rate
Minimum
Dollar
Amount
Comments
periodical, these
distributions are subject to
withholding under the
general wage withholding
tables and if not, subject to
withholding at 4.25%.
Generally, recipients born
during the period 1946
and 1952 will be able to
deduct $20,000 in pension
and retirement benefits if
single or married filing
separate or $40,000 if
married filing a joint return.
However, this exemption
does not apply to
payments from 457 plans,
401(k) plans, 403(b) plans
or any other elective
deferral plans if only the
employee made
contributions to the plan.
See
http://www.michigan.gov/d
ocuments/taxes/446_With
holdingGuide_403367_7.p
df and
http://www.michigan.gov/d
ocuments/taxes/2012_Pen
sion_Withholding_Guide_
365268_7.pdf
See also:
http://www.michigan.gov/t
axes/0,4676,7-23843513_5. For Oct., 2012
though 2013 9451263747-,00.html#Withholding and
Authority with
Hyperlink
Other Authority
State
Periodical
Calculation
Nonperiodical
Calculation
Applies to
periodical
payments from
QRPs, life
insurance
contracts,
commercial
annuities, and
endowment
contracts. QRPs
include IRC
'401(a), including
'401(k), '403(a)
and (b), and
governmental '457
plans.
Applies to
nonperiodical
payments such as
lump sums from
QRPs, life insurance
contracts, commercial
annuities, and
endowment contracts,
and to all taxable IRA
distributions.
filers of all
retirement benefits
from Michigan
taxable income.
The Michigan
standard deduction
for those born in
1946 was
increased by
$15,000 on public
retirement income
if employer was
exempt from Social
Security.)
Amounts paid in
excess of proper
exemption are
taxable; payers
must receive MI W4P and use
pension
withholding table at
http://www.michiga
n.gov/taxes/0,4676
,7-23843531_61039155476--,00.html
or formula in the
Pension
Withholding Guide.
-Born after 1952:
all benefits are fully
taxable; use the
monthly wage
withholding table in
Form 446 and
withhold based on
MI W-4P.
lower withholding.
In our mind
withholding can
only be managed
on lump sums, for
those born in 1946
through 1952 if you
use the agency’s
formula and not by
applying the
pension specific
Michigan
withholding tables
which are designed
for periodic
payments.
Formula:
Withholding =
[Pension or
Retirement
Payment subject to
federal income tax
– pension
deduction –
(Allowance per
Exemption x
Number of
Exemptions)] x
4.25%
Minimum
Percentage
Rate
Minimum
Dollar
Amount
Comments
http://www.michigan.gov/t
axes/0,4676,7-23843531_61041--,00.html#Formula
Refunds. If a payer
withholds on a retiree’s
distribution and pays the
withheld money to DOT,
and later determines that
the distribution was not
subject to income tax,
then the payer may
directly refund the
withheld amount to the
retiree. Payers can use
the same procedures
that are available to
employers under the
Michigan Administrative
Code R 206.22(1). The
rule provides that "[i]f an
employer over withholds
income tax from an
employee’s wages, or if
he withholds Michigan
tax where he should not
have withheld Michigan
tax, he may repay the
amount withheld in error
to the employee at any
time within the same
calendar year. … The
employer may adjust his
records internally and
deduct the amount
refunded from the tax
owing on his next tax
Authority with
Hyperlink
Other Authority
State
Periodical
Calculation
Nonperiodical
Calculation
Applies to
periodical
payments from
QRPs, life
insurance
contracts,
commercial
annuities, and
endowment
contracts. QRPs
include IRC
'401(a), including
'401(k), '403(a)
and (b), and
governmental '457
plans.
Applies to
nonperiodical
payments such as
lump sums from
QRPs, life insurance
contracts, commercial
annuities, and
endowment contracts,
and to all taxable IRA
distributions.
ALERT: special
withholding rules
apply to
distributions from
457 plans, 401(k)
plans, 403(b) plans
if made solely from
employee's
elective deferrals.
See comment
column and
http://www.michiga
n.gov/documents/t
axes/446_Withhold
ingGuide_403367_
7.pdf .
If no MI W-4P,
payers are to do
one of the
following:
• Not withhold on
benefits paid to
recipients born
before 1946
unless the
benefits exceed
private pension
limits of
$48,302 for
single filers or
$96,605 for
married filers.
• If the recipient
was born 1946
or after,
withhold on all
Minimum
Percentage
Rate
Minimum
Dollar
Amount
Comments
return …." See
http://www.michigan.gov/
taxes/0,4676,7-23843513_59451-263747-,00.html#Withholding
Trust as IRA
beneficiary: An IRA
custodian or
administrator is subject
to Michigan’s pension
withholding tax on any
distributions that will be
subject to Michigan
income tax at the end of
the year in the hands of
the beneficiary.
Distributions paid to a
trust as an IRA
beneficiary will be
taxable at the end of the
year and are subject to
pension withholding.
See
http://www.michigan.gov/
documents/taxes/446_37
0048_7.pdf
Charitable annuities
are subject:. A
501(c)(3) organization
making annuity
payments to
beneficiaries through a
charitable gift annuity
plan is subject to
Michigan pension
withholding on the
taxable portion of the
Authority with
Hyperlink
Other Authority
State
Periodical
Calculation
Nonperiodical
Calculation
Applies to
periodical
payments from
QRPs, life
insurance
contracts,
commercial
annuities, and
endowment
contracts. QRPs
include IRC
'401(a), including
'401(k), '403(a)
and (b), and
governmental '457
plans.
Applies to
nonperiodical
payments such as
lump sums from
QRPs, life insurance
contracts, commercial
annuities, and
endowment contracts,
and to all taxable IRA
distributions.
taxable pension
distributions at
4.25%
beginning Oct.
1, 2012 (down
from 4.35%).
From agency
FAQs:
Can the withholding
table or withholding
formula be used for
everyone? No. The
withholding tables
and/or withholding
formula found in the
Pension
Withholding Guide
are only for
recipients that were
born during the
period 1946 through
1952 and for whom
an MI W-4P has
been received.
What is the
difference between
the single and joint
Withholding tables?
The pension tax
withholding tables
included in the
Pension
Withholding Guide
incorporate the
deductions of
$20,000 for single
or married filing
Minimum
Percentage
Rate
Minimum
Dollar
Amount
Comments
distributions. In general,
the taxable portion of
distributions subject to
Michigan withholding will
be the taxable amount
that is reported to the
beneficiary at the end of
the year in box 2a of the
federal 1099-R form.
Authority with
Hyperlink
Other Authority
State
Periodical
Calculation
Nonperiodical
Calculation
Applies to
periodical
payments from
QRPs, life
insurance
contracts,
commercial
annuities, and
endowment
contracts. QRPs
include IRC
'401(a), including
'401(k), '403(a)
and (b), and
governmental '457
plans.
Applies to
nonperiodical
payments such as
lump sums from
QRPs, life insurance
contracts, commercial
annuities, and
endowment contracts,
and to all taxable IRA
distributions.
separate, and
$40,000 for married
filing a joint return,
assuming benefits
are paid monthly.
Recipients who
indicate on the MI
W-4P they are
married (withhold
as single) should
have withholding
computed as if they
are single.
For those that mark
line 1 of MI W-4P,
election out of
withholding is
allowed.
For those that mark
line 2 of MI W-4P
only withhold on
amounts paid in
excess of $48,302
for single filers or
$96,605 for married
filers.
What is the 4.25%
formula for those
born between 1946
and 1952 (those
who mark line 3 of
MI W-4P)? Use
formula at
http://www.michigan
.gov/taxes/0,4676,7
-238-43531_61041--,00.html#Formula
Minimum
Percentage
Rate
Minimum
Dollar
Amount
Comments
Authority with
Hyperlink
Other Authority
State
Periodical
Calculation
Nonperiodical
Calculation
Applies to
periodical
payments from
QRPs, life
insurance
contracts,
commercial
annuities, and
endowment
contracts. QRPs
include IRC
'401(a), including
'401(k), '403(a)
and (b), and
governmental '457
plans.
Applies to
nonperiodical
payments such as
lump sums from
QRPs, life insurance
contracts, commercial
annuities, and
endowment contracts,
and to all taxable IRA
distributions.
or 4927T pension
withholding tables
at
http://www.michigan
.gov/taxes/0,4676,7
-238-43531_61039155476--,00.html
Monthly
exemption
amounts for those
born in 1946
through 1952 if
claimed on MI W4P: The taxable
portion is
determined by
subtracting the
pension deduction
and personal
exemption
allowance. For Oct.,
2012 through 2013
monthly deduction
amounts are: single
pension deduction
$1666.67 and
married pension
deduction
$3,333.33.
Monthly PE
allowance for Oct.,
2012 through 2013
is: $329.17
(increasing to
$333.33 in 2014). .
These amounts are
Minimum
Percentage
Rate
Minimum
Dollar
Amount
Comments
Authority with
Hyperlink
Other Authority
State
Periodical
Calculation
Nonperiodical
Calculation
Applies to
periodical
payments from
QRPs, life
insurance
contracts,
commercial
annuities, and
endowment
contracts. QRPs
include IRC
'401(a), including
'401(k), '403(a)
and (b), and
governmental '457
plans.
Applies to
nonperiodical
payments such as
lump sums from
QRPs, life insurance
contracts, commercial
annuities, and
endowment contracts,
and to all taxable IRA
distributions.
already included in
the pension table.
Formula for those
born in 1946
through 1952:
Withholding =
[Distribution subject
to federal income
tax – Monthly
pension deduction –
(PE allowance x
Number claimed on
MI W-4P)] x 4.25%.
Example:
Pension Payment
$2,100 (-) Single
Pension Deduction
$1,666.67 =
$433.33
$433.33 (-)
($329.17 x 1
Exemption) =
$104.16
$104.16 x 4.25% =
$4.43 Monthly
Withholding
What is the
withholding rate
for those born
after 1952? (those
who check line
box 4 of MI W-4P) For recipients born
after 1952, all
pension and
Minimum
Percentage
Rate
Minimum
Dollar
Amount
Comments
Authority with
Hyperlink
Other Authority
State
Periodical
Calculation
Nonperiodical
Calculation
Applies to
periodical
payments from
QRPs, life
insurance
contracts,
commercial
annuities, and
endowment
contracts. QRPs
include IRC
'401(a), including
'401(k), '403(a)
and (b), and
governmental '457
plans.
Applies to
nonperiodical
payments such as
lump sums from
QRPs, life insurance
contracts, commercial
annuities, and
endowment contracts,
and to all taxable IRA
distributions.
Minimum
Percentage
Rate
Minimum
Dollar
Amount
Comments
Authority with
Hyperlink
Other Authority
Minnesota Income Tax
Withholding Guide at
http://www.revenue.stat
e.mn.us/Forms_and_Ins
tructions/2012/wh_inst_
1113.pdf
If payee requests on a
MN marked W-4P must
follow wage withholding
rules. See
http://www.revenue.stat
e.mn.us/businesses/with
holding/Pages/Nonwage
paymentssubjecttowithh
oldingAnnuitiesandPensi
ons.aspx
retirement benefits
are taxable. Use
the monthly
withholding table
from the Michigan
Income Tax
Withholding Guide
(Form 446) to
calculate the
appropriate
withholding based
on the number of
personal
exemptions claimed
on the MI W-4P.
Minnesota
(as of
06/20/2013)
Alert: new
legislation has
retroactively
changed the
rates for 2013.
New withholding
tables were
released on
June 20, 2013,
effective
immediately.
Payers are
instructed to
begin using the
revised
withholding
tables and
formula
immediately.
However, the
tables have not
been increased
New tables were
released June 20,
2013, but Guide
still says
supplemental rate
is 6.25%. See
http://www.revenu
e.state.mn.us/For
ms_and_Instructio
ns/2012/wh_inst_
1113.pdf
New June 20, 2013,
withholding computer
formula and tables can
be found at :
http://www.revenue.stat
e.mn.us/Forms_and_Ins
tructions/2012/wh_inst_
1113.pdf
Alert: New
withholding tables
released June 20,
2013. See periodic
calculation column and
http://www.revenue.stat
State
Periodical
Calculation
Nonperiodical
Calculation
Applies to
periodical
payments from
QRPs, life
insurance
contracts,
commercial
annuities, and
endowment
contracts. QRPs
include IRC
'401(a), including
'401(k), '403(a)
and (b), and
governmental '457
plans.
Applies to
nonperiodical
payments such as
lump sums from
QRPs, life insurance
contracts, commercial
annuities, and
endowment contracts,
and to all taxable IRA
distributions.
to account for
additional
withholding on
amounts paid
before the
revised tables
and formula
were released.
Payers have
been told that
they are not
responsible to
catch up
withholding for
the first six
months of 2013.
See FAQs and
link to new
tables at
http://www.reven
ue.state.mn.us/b
usinesses/withh
olding/Pages/Ne
wMinnesotaWith
holdingTaxTable
sandFormula.as
px
See also:
http://www.reven
ue.state.mn.us/D
ocuments/Law_
Changes/2013_
WH_Overview.p
df
The withholding
amount is
determined as
Minimum
Percentage
Rate
Minimum
Dollar
Amount
Comments
Authority with
Hyperlink
e.mn.us/Documents/La
w_Changes/2013_WH_
Overview.pdf
There is a new 4th tier
tax rate of 9.85% that
applies to amounts
greater than $250,000
(married filing jointly);
$125,000 (married filing
separately); $150,000
(single); and $200,000
(head of household).
Thresholds are to be
adjusted for inflation
with the base year for
adjustment reset to
2013. Payers are
instructed to begin using
the revised withholding
tables and formula
immediately. However,
the tables have not
been increased to
account for additional
withholding on amounts
paid before the revised
tables and formula were
released. Payers have
been told that they are
not responsible to catch
up withholding for the
first six months of 2013.
[H.F. 677, May 20,
2013]
Other Authority
State
Periodical
Calculation
Nonperiodical
Calculation
Applies to
periodical
payments from
QRPs, life
insurance
contracts,
commercial
annuities, and
endowment
contracts. QRPs
include IRC
'401(a), including
'401(k), '403(a)
and (b), and
governmental '457
plans.
Applies to
nonperiodical
payments such as
lump sums from
QRPs, life insurance
contracts, commercial
annuities, and
endowment contracts,
and to all taxable IRA
distributions.
Minimum
Percentage
Rate
Minimum
Dollar
Amount
Comments
Authority with
Hyperlink
Other Authority
See withholding tables
in
http://www.dor.ms.gov/d
ocs/with_89700.pdf
For what is taxable and
exemptions, see MS
Code § 27-7-15(2)(k),
(l); and MS Admin. Code
Title 35, Part III, §2.07,
§3.15, and §11.02 Rule
101 (1) (which exempts
items in MS Code 27-715, all but early and
excess distributions) at
http://www.mscode.com/
free/statutes/27/007/001
5.htm
though the
annuity was a
payment of
wages. To
determine how
much to withhold, use the
wage
withholding
tables or formula
tables and treat
the payment as
though it were a
payment of
wages. Apply
allowances from
MN marked W4P. See
http://www.reven
ue.state.mn.us/F
orms_and_Instru
ctions/2012/wh_i
nst_1113.pdf
Mississippi (as
of 12/26/2012)
Form 89-350 from participant is
necessary to access MS tax
withholding tables; but only withhold
on early or excess distributions.
Find withholding tax tables and
Withholding Computer Payroll
Accounting Flowchart at
http://www.dor.ms.gov/taxareas/withho
ld/main.html
See Form 89-350 at
http://www.dor.ms.gov/docs/WH_8935
0_2012.pdf
Rounded to nearest $
Or, find withholding tax
tables and Withholding
Computer Payroll
Accounting Flowchart at
http://www.dor.ms.gov/t
axareas/withhold/main.h
tml
Some firms withhold at a
State
Periodical
Calculation
Nonperiodical
Calculation
Applies to
periodical
payments from
QRPs, life
insurance
contracts,
commercial
annuities, and
endowment
contracts. QRPs
include IRC
'401(a), including
'401(k), '403(a)
and (b), and
governmental '457
plans.
Applies to
nonperiodical
payments such as
lump sums from
QRPs, life insurance
contracts, commercial
annuities, and
endowment contracts,
and to all taxable IRA
distributions.
Minimum
Percentage
Rate
Minimum
Dollar
Amount
Comments
Authority with
Hyperlink
Other Authority
flat 5%,which is the
highest individual
income tax bracket and
applies on income over
$10,000, but there
appears to be no
authorization of that
practice. Pub 89-700
says for supplemental
wages the amount to be
withheld may be
computed at the
percent corresponding
to the highest tax
bracket an employee
is expected to reach on
his annual state income
tax return. See
http://www.dor.ms.gov/d
ocs/with_89700.pdf
Missouri (email
received from
MO DOR that
matters have
been referred
to counsel.) (as
of 09/12/2013)
Election is voluntary so withhold a flat
dollar amount as designated by
taxpayer on MO W-4P for pensions
and annuities. See comment column.
$10 per month
In the 2013 Employer's
Guide, it says Missouri
follows the federal
guidelines for lump sum
and periodic
distributions. On lump
sum distributions, we
are instructed to
withhold at the rate of 6
percent. If a periodic
distribution, to follow the
formula for wages or
use the tax tables. In
email exchanges in
April, 2008 with
Missouri, we learned
that withholding for all
retirement plans except
Missouri Department of
Revenue "State of
Missouri Employer's Tax
Guide" at
http://dor.mo.gov/pdf/42
82.pdf and on line at
http://dor.mo.gov/busine
ss/withhold/
See also 12 CSR 102.015(15). at
http://www.sos.mo.gov/a
drules/csr/current/12csr/
12c10-2.pdf
and
http://dor.mo.gov/faq/bu
siness/withhold.php#vol
untary
See MO W-4P at
http://dor.mo.gov/forms/
MO-W-4P_2013.pdf
H.B. 253, S.B. 26, 11,
and 31 was vetoed by
State
Periodical
Calculation
Nonperiodical
Calculation
Applies to
periodical
payments from
QRPs, life
insurance
contracts,
commercial
annuities, and
endowment
contracts. QRPs
include IRC
'401(a), including
'401(k), '403(a)
and (b), and
governmental '457
plans.
Applies to
nonperiodical
payments such as
lump sums from
QRPs, life insurance
contracts, commercial
annuities, and
endowment contracts,
and to all taxable IRA
distributions.
Minimum
Percentage
Rate
Minimum
Dollar
Amount
Comments
Authority with
Hyperlink
Other Authority
Governor and it was
sustained. Tax rate cuts
will not occur.
non-qualified deferred
compensation is
voluntary on part of
payee so withhold
based on amount payee
tells you to withhold on
MO-W-4P.
Even with this
correspondence, the
treatment of private
annuities, life insurance
products and IRAs are
still unclear. We have
contacted the agency to
refresh our 2008 answer
and received an email
that the query has been
referred to counsel.
See also 12 CSR 102.015(15).
Montana (as of
12/26/2012)
Flat amount as designated by payee.
Rounded to nearest $.
See Mont. Admin. Regs
§42.17.103(4) at
http://www.mtrules.org/g
ateway/RuleNo.asp?RN
=42.17.103 effective
Jan. 15, 2010.
See also
http://revenue.mt.gov/co
ntent/formsandresource
s/current_year_downloa
dable_forms/Other_For
ms_Not_Yearly/Withhol
ding_Forms/Employers_
Tax_Guide.pdf
A recipient of any
designated distribution
may elect to have the
payor withhold state
income tax from such
payments by filing a
written election with the
payor. Such tax
withholding election
shall specify a flat dollar
amount of income tax to
be withheld by the payor
from each designated
distribution. Such
election shall also
specify the name,
State
Periodical
Calculation
Nonperiodical
Calculation
Applies to
periodical
payments from
QRPs, life
insurance
contracts,
commercial
annuities, and
endowment
contracts. QRPs
include IRC
'401(a), including
'401(k), '403(a)
and (b), and
governmental '457
plans.
Applies to
nonperiodical
payments such as
lump sums from
QRPs, life insurance
contracts, commercial
annuities, and
endowment contracts,
and to all taxable IRA
distributions.
Minimum
Percentage
Rate
Minimum
Dollar
Amount
Comments
Authority with
Hyperlink
Other Authority
current address, and
taxpayer identification
number of the recipient.
Any change or
revocation of a
previously filed election
shall include the same
information for an initial
election except the
recipient should indicate
whether a change or
revocation of a
previously filed election
is being made. In this
case, the payor shall
remit the withholding tax
to the department as
required for wages.
DOR suggests calling
(406)
444-6900 for more
information.
Nebraska
(as of
12/14/2012)
Use wage tables.
However,
disregard the
special 1½%
withholding
procedures when
using the 2013
tables (the
shading holds no
meaning for
periodic
payments). See
http://www.revenu
e.state.ne.us/circen/2013/circ_en_2
5%, if distribution
is subject to
mandatory 10% or
20% federal
withholding
5.00%
Withholding allowances
and marital status for
federal withholding will
apply to state
withholding.
Premature distributions
from an IRA are not
subject to Nebraska
withholding.
New 2013 Circular EN,
Income Tax Withholding
guide including new
withholding tables, for
use on and after Jan. 1,
2013, see
http://www.revenue.stat
e.ne.us/circen/2013/circ_en_2013.h
tml
Previous version with
2012 tables can be
found at:
http://www.revenue.ne.g
Nebraska requires
withholding whenever
the recipient has federal
withholding taken from a
pension or annuity
payment. However, the
special 1½% withholding
procedures do not apply
to any pension or
annuity payments.
While pension and
annuity payments may
be deemed “wages
subject to withholding”
under both federal and
State
Periodical
Calculation
Nonperiodical
Calculation
Applies to
periodical
payments from
QRPs, life
insurance
contracts,
commercial
annuities, and
endowment
contracts. QRPs
include IRC
'401(a), including
'401(k), '403(a)
and (b), and
governmental '457
plans.
Applies to
nonperiodical
payments such as
lump sums from
QRPs, life insurance
contracts, commercial
annuities, and
endowment contracts,
and to all taxable IRA
distributions.
013.html and
http://www.revenu
e.state.ne.us/ques
tion/wh_new_ques
t.html#wh01
Minimum
Percentage
Rate
Minimum
Dollar
Amount
Comments
Authority with
Hyperlink
Other Authority
ov/circ-en/2011/2011ciren_whole.pdf
state law, the special
1½% withholding
procedures apply only to
wages and salaries paid
to active employees by
their employer.
http://www.revenue.stat
e.ne.us/question/wh_ne
w_quest.html#wh01
See also
http://www.revenue.ne.g
ov/withhold.html
New legislation has
reduced tax rates
beginning in 2013.
Under the change, the
single status 2.56% rate
drops to 2.46%, the
3.57% rate drops to
3.51% and the 5.12%
rate drops to 5.01%. In
2014, the 2.46% rate
will apply to the first
$3,000 of taxable
income, the 3.51% rate
to the next $15,000 of
taxable income, the
5.01% rate to the next
$11,000 of taxable
income and the 6.84%
rate to all taxable
income above $29,000.
Starting in 2013, for
married taxpayers, the
new law reduces the
2.56% rate to 2.46%,
the 3.57% rate to 3.51%
and the 5.12% rate to
5.01%. In 2014, the
2.46% rate applies to
the first $6,000 of
taxable income, the
3.51% rate to the next
State
Periodical
Calculation
Nonperiodical
Calculation
Applies to
periodical
payments from
QRPs, life
insurance
contracts,
commercial
annuities, and
endowment
contracts. QRPs
include IRC
'401(a), including
'401(k), '403(a)
and (b), and
governmental '457
plans.
Applies to
nonperiodical
payments such as
lump sums from
QRPs, life insurance
contracts, commercial
annuities, and
endowment contracts,
and to all taxable IRA
distributions.
Minimum
Percentage
Rate
Minimum
Dollar
Amount
Comments
Authority with
Hyperlink
Other Authority
$30,000 of taxable
income, the 5.01% rate
to the next $22,000 of
taxable income and the
6.84% rate to all taxable
income above $58,000.
[L.B. 970, Laws 2012]
Nevada
No state income tax
New
Hampshire
No state income tax
New Jersey (as
of 12/20/2012)
Even dollar amount as specified on NJ
W-4P
$10
http://www.state.nj.us/tr
easury/taxation/pdf/curr
ent/njw4p.pdf
New Jersey Statutes
54A:7-1.1 (P.L. 1989,
c.328)
http://www.state.nj.us/tr
easury/taxation/pdf/curr
ent/njwt.pdf
New Mexico
(as of
02/01/2013)
Designated
specific dollar
amount
allowed. If an
individual
requests in
writing that the
payor deduct
and withhold an
amount from the
pension or
annuity income
paid to the
individual, the
payor is required
Designated
specific dollar
amount allowed.
If an individual
requests in writing
that the payor
deduct and
withhold an
amount from their
retirement
benefits, the payor
is required to
deduct and
withhold the
amount requested
FYI 104 says
"No
withholding
is required if
the total
withholding for
payee during
any one
month is less
than $1.00.
See FYI 104
at
http://www.tax.
newmexico.go
v/Forms-and-
Withholding on
retirement distributions
is optional on the part of
the payee. Pension and
annuity income of a
New Mexico resident is
subject to income tax in
New Mexico, but New
Mexico does not require
payers to withhold
unless the payee
requests the payer to
withhold state tax from
their retirement benefits.
If an individual requests
New Mexico Taxation
and Revenue
Department Pub. FYI104 "New Mexico
Withholding Tax" and
FYI 107 "An Individual's
Guide to New Mexico
Withholding Tax" at
http://www.tax.newmexic
o.gov/Forms-andPublications/Publications
/FYIPublications/Pages/With
holding.aspx
New Mexico Statutes
Ann. §7-3-3
State
Periodical
Calculation
Nonperiodical
Calculation
Applies to
periodical
payments from
QRPs, life
insurance
contracts,
commercial
annuities, and
endowment
contracts. QRPs
include IRC
'401(a), including
'401(k), '403(a)
and (b), and
governmental '457
plans.
Applies to
nonperiodical
payments such as
lump sums from
QRPs, life insurance
contracts, commercial
annuities, and
endowment contracts,
and to all taxable IRA
distributions.
to deduct and
withhold the
amount
requested
unless the
requested
amount of
withholding is
less than
$10.00.
unless the
requested amount
of withholding is
less than $10.00.
Tables can also
be used. A
percentage
method or wage
tables may be
used; can use
federal W-4P
allowances to
access tables or
use percentage
method. See
tables and
method in FYI
104 at
http://www.tax.ne
wmexico.gov/For
ms-andPublications/Publ
ications/FYIPublications/Pag
es/Withholding.a
spx
Alert: NM
initially released
estimated 2013
tables on
January 10,
Note: the
provision for using
a flat 4.9 percent
only applies to
supplemental
wages or fringe
benefit amounts
taxable as wages.
See FYI 104 at
http://www.tax.new
mexico.gov/Forms
-andPublications/Public
ations/FYIPublications/Page
s/Withholding.aspx
Minimum
Percentage
Rate
Minimum
Dollar
Amount
Comments
Publications/P
ublications/FYI
Publications/P
ages/Withholdi
ng.aspx
in writing that the payor
deduct and withhold an
amount from the
pension or annuity
income paid to the
individual, the payor is
required to deduct and
withhold the amount
requested unless the
requested amount of
withholding is less than
$10.00.To report
withholding tax, a payer
must be registered with
the state under the
Combined Reporting
System. See Table 4A.
But FYI 107
says " the
payor is
required to
deduct and
withhold the
amount
requested
unless the
requested
amount of
withholding is
less than
$10.00."
http://www.tax.
newmexico.go
v/Forms-andPublications/P
ublications/FYI
Publications/P
ages/Withholdi
ng.aspx
Authority with
Hyperlink
Other Authority
State
Periodical
Calculation
Nonperiodical
Calculation
Applies to
periodical
payments from
QRPs, life
insurance
contracts,
commercial
annuities, and
endowment
contracts. QRPs
include IRC
'401(a), including
'401(k), '403(a)
and (b), and
governmental '457
plans.
Applies to
nonperiodical
payments such as
lump sums from
QRPs, life insurance
contracts, commercial
annuities, and
endowment contracts,
and to all taxable IRA
distributions.
Minimum
Percentage
Rate
Minimum
Dollar
Amount
Comments
Authority with
Hyperlink
Other Authority
Each amount
must be at
least $5 per
month and
should not
reduce the
annuity or
pension
payment to
less than $10.
Withholding only
allowed for annuities
and pensions payable
over a period longer
than 1 year. For these
payments, IT-2104-P is
to be used by payees to
specify amounts of New
York State income tax
(and, if a New York City
or Yonkers resident, that
city’s personal income
tax) to be withheld from
each payment. With the
exception of thes e
annuity payments,
income that is reported
on federal F orms 1099
is not s ubject to New
Y ork S tate withholding
tax and there are no
provis ions in the tax law
for s uch withholding.
See links to IT-2104-P
and New York State
Department of Taxation
and Finance Pub. NYS50 "Employer's Guide to
Unemployment
Insurance, Wage
Reporting, and
Withholding Tax" at
http://www.tax.ny.gov/fo
rms/withholding_cur_for
ms.htm
However, the annuity or
pension must be
payable over a period
longer than one year.
Instructions require
whole dollar amount(s)
to be withheld from each
annuity or pension
payment.
2013. It now has
finalized the
estimated tables
without change
for 2013.
New York (as
of 12/27/2012)
Whole dollar amount specified on
IT-2104-P found at
http://www.tax.ny.gov/forms/withholdin
g_cur_forms.htm
NYS allows employee
and employer to enter
into an agreement to
provide for withholding
on payments for
s ervices not cons idered
wages , but not on
payments to s elf-
State
Periodical
Calculation
Nonperiodical
Calculation
Applies to
periodical
payments from
QRPs, life
insurance
contracts,
commercial
annuities, and
endowment
contracts. QRPs
include IRC
'401(a), including
'401(k), '403(a)
and (b), and
governmental '457
plans.
Applies to
nonperiodical
payments such as
lump sums from
QRPs, life insurance
contracts, commercial
annuities, and
endowment contracts,
and to all taxable IRA
distributions.
Minimum
Percentage
Rate
Minimum
Dollar
Amount
Comments
Authority with
Hyperlink
Other Authority
employed or other nonemployee payments. S o
as to IR As and lump
s ums from other plans,
withholding appears not
to be s upported.
North Carolina
(as of
10/04/2013)
Use married with
3 allowances to
access
withholding
tables in NC 30
unless payee
specifies a
different status
or number of
allowances on
NC-4P.
Find withholding
tables and
instructions for
2013 at
http://www.dor.st
ate.nc.us/downlo
ads/nc30_2013.
pdf and for 2012
at
http://www.dor.st
ate.nc.us/downlo
ads/nc30_2012.
pdf
See instructions
for missing NC4P, missing TIN,
or incorrect TIN
4%;
also withhold 4%
on ERDs.
See instructions
for missing NC4P, missing TIN,
or incorrect TIN in
comment column.
Caution:
legislation
passed to
change to a flat
tax in 2014. See
authority column.
[H.B. 998, as
passed by the
North Carolina
Legislature on
July 17, 2013]
Caution: if no TIN or
incorrect TIN, then an
election not to have tax
withheld is void if the
recipient does not
furnish the recipient’s
TIN (SSN) to the payer
or furnishes an incorrect
TIN. In such cases, the
payer withholds on
periodic payments as if
the recipient is married
claiming three
allowances and on
nonperiodic distributions
at the rate of 4 percent.
In lieu of Form NC-4P,
payers may use a
substitute form if it
contains all the
provisions included on
Form NC-4P. For nonperiodical distributions
including all IRA
distributions, the
election needs to be
made on a distributionby-distribution basis.
See instructions to Form
NC-4P at
Find withholding tables
and instructions in NC30 for 2013 at
http://www.dor.state.nc.
us/downloads/nc30_201
3.pdf and for 2012 at
http://www.dor.state.nc.
us/downloads/nc30_201
2.pdf
CAUTION: New
legislation was signed
into law that in 2014
will:
• Replace the
graduated tax rates
with a flat tax of 5.8%
for 2014 and 5.75%
after 2014 (currently
graduated tax rates
range from 6% to
7.75%);
• Increase the standard
deduction to $15,000
for joint filers (up from
$6,000), $12,000 for
heads of household
(up from $4,400), and
$7,500 for single
Individual Income Tax
directive PD-00-2
NC-4P at
http://www.dor.state.nc.
us/downloads/NC4P.pdf
http://www.dor.state.nc.
us/downloads/NC4P.pdf
State
Periodical
Calculation
Nonperiodical
Calculation
Applies to
periodical
payments from
QRPs, life
insurance
contracts,
commercial
annuities, and
endowment
contracts. QRPs
include IRC
'401(a), including
'401(k), '403(a)
and (b), and
governmental '457
plans.
Applies to
nonperiodical
payments such as
lump sums from
QRPs, life insurance
contracts, commercial
annuities, and
endowment contracts,
and to all taxable IRA
distributions.
in comment
column.
Caution:
legislation
passed to
change tax
structure to a flat
tax in 2014 that
will also change
withholding
responsibilities.
See authority
column.
Minimum
Percentage
Rate
Minimum
Dollar
Amount
Comments
Authority with
Hyperlink
http://www.dor.state.nc.
us/downloads/nc30_201
3.pdf
taxpayers and married
taxpayers filing
separately (up from
$3,000);
• Limit itemized
deductions allowing
only charitable
deductions, personal
residence interest,
and real property
taxes, but cap those
deduction amounts for
personal residence
interest and real
property taxes at
$20,000; but there is
no limit on charitable
deductions;
• Repeal the personal
exemption and other
deductions, including
deductions for certain
retirement benefits
and other deductions.
Other deductions,
such as for Social
Security benefits is
retained.
If do not received NC4P: In the case of a
periodic payment, as
defined in IRC §
3405(e)(2), the payer
must withhold as if the
recipient were a married
person with three
allowances unless the
recipient provides a
Form NC-4P or valid
substitute reflecting a
different filing status or
number of allowances.
But, for pension
distributions that are not
ERDs, see special payer
election not to withhold
where annually paying
$10,560 or less,
covered in column on
payee notices.
For a nonperiodic
distribution as defined
in IRC §3405(e)(3),
withhold at 4%. If not an
ERD, payee may elect
out of withholding on
Form NC 4P or valid
substitute. See Table 1.
Most changes are
effective beginning with
the 2014 tax year. [H.B.
998, as passed by the
North Carolina
Legislature on July 17,
2013]
If a payee has provided
a North Carolina
DOR has said NC 30
will be revised to reflect
Other Authority
State
North Dakota
(as of
07/18/2013)
Periodical
Calculation
Nonperiodical
Calculation
Applies to
periodical
payments from
QRPs, life
insurance
contracts,
commercial
annuities, and
endowment
contracts. QRPs
include IRC
'401(a), including
'401(k), '403(a)
and (b), and
governmental '457
plans.
Applies to
nonperiodical
payments such as
lump sums from
QRPs, life insurance
contracts, commercial
annuities, and
endowment contracts,
and to all taxable IRA
distributions.
Withholding is voluntary. For periodical
payments, payers may use one of two
methods: Percentage of Wages
Method, which is similar to the federal
percentage method (in IRS Pub. 15);
Withholding Tables which are similar
to the federal wage bracket method.
May use W-4P allowances to access
tables.
New tables and instructions were
released for 2013 in June, 2013. The
June version of withholding
instructions deleted the “Percentage of
Federal Withholding” method due to
obsolescence. Any payer using this
method may continue using it through
the 2013 calendar year, but must
change in the 2014 calendar year to
one of the two methods described in
the new guide at
www.nd.gov/tax/indwithhold/pubs/with
Minimum
Percentage
Rate
Minimum
Dollar
Amount
Not required
to w/h on
amounts less
than $1
Comments
Authority with
Hyperlink
address to a pension
payer, the payee is
presumed to be a North
Carolina resident and
the payer is required
to apply the NC
withholding
requirements. Form NC4P is required to rebut
this if the payee is not a
resident, but is using an
NC address.
See
http://www.dor.state.nc.
us/downloads/nc30_201
3.pdf
these changes in
withholding tables and
instructions for 2014.
Rounded to nearest $
See July, 2013 version
of the withholding guide
at
http://www.nd.gov/tax/in
dwithhold/pubs/guide/gl28221.pdf (now also
amended to remove
information regarding
the percent of federal
withholding method.)
The Withholding Rates
and Instructions booklet
and the withholding
tables were revised in
June 2013 to reflect the
reduced individual
income tax rates passed
by the 2013 North
Dakota Legislature. The
reduced rates will apply
Other Authority
See July, 2013 version
of the withholding guide
at
http://www.nd.gov/tax/in
dwithhold/pubs/guide/gl28221.pdf that outlines
terms of voluntary
withholding (now also
amended to remove
information regarding
the percent of federal
withholding method.)
The June version of
withholding instructions
deleted the “Percentage
of Federal Withholding”
method due to
obsolescence. Any
payer using this method
may continue using it
through the 2013
State
Periodical
Calculation
Nonperiodical
Calculation
Applies to
periodical
payments from
QRPs, life
insurance
contracts,
commercial
annuities, and
endowment
contracts. QRPs
include IRC
'401(a), including
'401(k), '403(a)
and (b), and
governmental '457
plans.
Applies to
nonperiodical
payments such as
lump sums from
QRPs, life insurance
contracts, commercial
annuities, and
endowment contracts,
and to all taxable IRA
distributions.
holdingbooklet2013.pdf?20130701115
520
The supplemental wage rate was also
decreased to 2.28%.
Minimum
Percentage
Rate
Minimum
Dollar
Amount
Comments
Authority with
Hyperlink
Other Authority
to tax years beginning
on or after January 1,
2013. However,
updating systems for the
changes is optional for
the remainder of the
2013 calendar year.
Payers are encouraged
to update as soon as
possible, and if
choosing to update for
the remainder of the
2013 calendar year,
payers are not required
to account for any overwithholding that might
have occurred with
respect to previously
paid amounts.
calendar year, but must
change in the 2014
calendar year to one of
the two methods
described in the new
guide at
www.nd.gov/tax/indwith
hold/pubs/withholdingbo
oklet2013.pdf?2013070
1115520
The supplemental wage
rate was also decreased
to 2.28%.
Find 2013 withholding
rates and instructions at
www.nd.gov/tax/indwith
hold/pubs/withholdingbo
oklet2013.pdf?2013070
1115520 and
2013 withholding tables
at
http://www.nd.gov/tax/in
dwithhold/pubs/guide/in
dex.html
Under the new
legislation, North Dakota
has reduced tax rates
State
Periodical
Calculation
Nonperiodical
Calculation
Applies to
periodical
payments from
QRPs, life
insurance
contracts,
commercial
annuities, and
endowment
contracts. QRPs
include IRC
'401(a), including
'401(k), '403(a)
and (b), and
governmental '457
plans.
Applies to
nonperiodical
payments such as
lump sums from
QRPs, life insurance
contracts, commercial
annuities, and
endowment contracts,
and to all taxable IRA
distributions.
Minimum
Percentage
Rate
Minimum
Dollar
Amount
Comments
Authority with
Hyperlink
Other Authority
retroactively to January
1, 2013, for all filing
statuses and brackets,
with the lowest bracket
decreasing from 1.51%
to 1.22% and remaining
brackets reduced to
2.27% (previously,
2.82%), 2.52%
(previously, 3.13%),
2.93% (previously,
3.63%), and 3.22%
(previously, 3.99%).
[S.B. 2156, 2013]
Ohio (as of
08/13/2013)
Ohio recommends the taxpayer
complete the estimated tax worksheet
(IT-1040ES worksheet and
instructions), which allows the
taxpayer to figure the tax, including the
credits and deductions. Once the
estimated tax for the year is
determined, the taxpayer should divide
the amount by twelve to determine the
monthly withholding.
On June 30, 2013,
Amended Substitute
House Bill 59 (HB 59) of
the 130th General
Assembly (also known
as the fiscal year 20142015 biennial budget
bill) was signed into law.
The new law will not
affect retirement plan
withholding
requirements in Ohio,
but may cause payees
to want to modify
withholding requests.
New HB 59 reduces
income tax base
amounts and rates by
8.5% in taxable year
2013, an additional .5%
to total 9% in taxable
year 2014, and an
additional 1% to total
Email dated 6/25/07
from Ohio Dept. of
Taxation
IT 1996-01 -- Personal
Income Tax: Federal
Law Preempting State
Taxation of Retirement
Plan Income - Issued
March 11, 1996;
Revised May 2007:
http://www.tax.ohio.gov/
ohio_individual/individua
l/information_releases/it
199601.aspx
State
Periodical
Calculation
Nonperiodical
Calculation
Applies to
periodical
payments from
QRPs, life
insurance
contracts,
commercial
annuities, and
endowment
contracts. QRPs
include IRC
'401(a), including
'401(k), '403(a)
and (b), and
governmental '457
plans.
Applies to
nonperiodical
payments such as
lump sums from
QRPs, life insurance
contracts, commercial
annuities, and
endowment contracts,
and to all taxable IRA
distributions.
Minimum
Percentage
Rate
Minimum
Dollar
Amount
Comments
Authority with
Hyperlink
10% in taxable year
2015. See ORC
5747.02.
Corresponding changes
to employer income tax
withholding tables have
been released to be
used for payrolls that
end on or after
September 1, 2013.
The new tables are to
be used for payrolls for
the remainder of the
2013 calendar year and
for all of 2014. Even
with the drop in the
2013 income tax rates,
the supplemental rate of
withholding will remain
at 3.5% (rather than
decrease to 3.2%). See
tables at
http://www.tax.ohio.gov/
employer_withholding.a
spx
Other Authority
State
Oklahoma (as
of 05/15/2013)
Periodical
Calculation
Nonperiodical
Calculation
Applies to
periodical
payments from
QRPs, life
insurance
contracts,
commercial
annuities, and
endowment
contracts. QRPs
include IRC
'401(a), including
'401(k), '403(a)
and (b), and
governmental '457
plans.
Applies to
nonperiodical
payments such as
lump sums from
QRPs, life insurance
contracts, commercial
annuities, and
endowment contracts,
and to all taxable IRA
distributions.
A percentage
5%
method or wage
See OAC 710:90tables are to be
1-13 at
used. Marital status http://www.tax.ok.
and allowances are gov/rules/rule9008
the same as
.pdf
claimed on federal
Form W-4P. If no
W-4P, treat
recipient as married
with 3 withholding
allowances.
Minimum
Percentage
Rate
Minimum
Dollar
Amount
5.00% on nonperiodical
distributions
Comments
Rounded to nearest $
Authority with
Hyperlink
Other Authority
See revised 2013 tables
at
http://www.tax.ok.gov/pu
blicat/2013WHTablesV2
.pdf?goback=.gde_4307
305_member_21010911
4
Withholding on
Pensions, designated
distributions and nonperiodic payments are to
be treated as wages.
See 710:90-1-13 at
http://www.tax.ok.gov/rul
es/rule9008.pdf
ALERT: Agency issued
a second release of the
2013 withholding tables
on January 9, 2013, as
it had earlier cautioned,
revising the tables
because of
Congressional action in
late 2012 and early
2013. See
http://www.tax.ok.gov/up
min010313.html
On May 13, 2013,
Governor Mary Fallin
signed into law an
income tax reduction bill.
HB 2032 would cut the
top income tax rate from
5.25 percent to 5.0
percent on January 1,
2015 and further cut the
rate to 4.85 percent in
2016.
See 2012 tables at
http://www.tax.ok.gov/pu
blicat/2012WHTables.pd
f
Oregon (as of
10/15/2013)
Wage tables or
computer
formula applied
same as for
wages using
federal W-4P
allowances.
http://www.orego
n.gov/DOR/BUS/
payroll_updates.
shtml and
http://www.filingi
noregon.com/pa
8%
http://www.filingin
oregon.com/page
s/forms/business/
guides/employer_
guide.pdf
Note that the
withholding rate in
the Employer
Guide is specified
for lump sum
distributions at
$10
Distributions are treated
as wages. The amount
of withholding per payee
must be $10 or more.
May be rounded to the
nearest dollar.
Links to 2013
withholding formula and
to the 2012 formulas
and tables can be found
at
http://www.oregon.gov/
DOR/BUS/Pages/payroll
_updates.aspx
ALERT: Under recent
legislation, retroactive to
Jan. 1, 2013, taxpayers
cannot claim the
O.R.S. 316.189; O.A.R.
150-316.189(4) and (6).
.
State
Periodical
Calculation
Nonperiodical
Calculation
Applies to
periodical
payments from
QRPs, life
insurance
contracts,
commercial
annuities, and
endowment
contracts. QRPs
include IRC
'401(a), including
'401(k), '403(a)
and (b), and
governmental '457
plans.
Applies to
nonperiodical
payments such as
lump sums from
QRPs, life insurance
contracts, commercial
annuities, and
endowment contracts,
and to all taxable IRA
distributions.
ges/forms/busin
ess/guides/empl
oyer_guide.pdf
8%. This is the
rate in the
regulations for
withholding on this
type of income. It
differs from the
supplemental
wage rate of 9%
found in
http://www.oregon
.gov/dor/BUS/doc
s/withholdingformulas_206436_2013.pdf
See also:
http://www.orego
n.gov/dor/BUS/d
ocs/combinedpayroll_211-1552_2013.pdf
ALERT: Under
recent
legislation,
retroactive to
Jan. 1, 2013,
taxpayers
cannot claim the
personal
exemption credit
if their federal
adjusted gross
income for the
tax year exceeds
$100,000 or
more for a single
return or
$200,000 or
more for a joint
return.
Withholding
tables have not
been adjusted.
[H.B. 3601a,
2013 Special
Session]
Pennsylvania
(as of
3.07% PA tax rate for all withholding.
See https://revenue-
Minimum
Percentage
Rate
Minimum
Dollar
Amount
Comments
Authority with
Hyperlink
Other Authority
personal exemption
credit if their federal
adjusted gross income
for the tax year exceeds
$100,000 or more for a
single return or
$200,000 or more for a
joint return. Withholding
tables have not been
adjusted. [H.B. 3601a,
2013 Special Session]
3.07%
Generally, PA does not
consider retirement
See Answer ID 578 at
https://revenue-
PA Code §§101.6,
113.2; Pennsylvania Act
State
01/13/2013)
Periodical
Calculation
Nonperiodical
Calculation
Applies to
periodical
payments from
QRPs, life
insurance
contracts,
commercial
annuities, and
endowment
contracts. QRPs
include IRC
'401(a), including
'401(k), '403(a)
and (b), and
governmental '457
plans.
Applies to
nonperiodical
payments such as
lump sums from
QRPs, life insurance
contracts, commercial
annuities, and
endowment contracts,
and to all taxable IRA
distributions.
pa.custhelp.com/app/answers/detail/a
_id/1347
Minimum
Percentage
Rate
Minimum
Dollar
Amount
Comments
income to be taxable,
but voluntary
withholding
arrangements may be
effected.
Authority with
Hyperlink
Other Authority
pa.custhelp.com/app/an
swers/detail/a_id/578/kw
/578
40 of 2005; 61 PA Code
§117.18 and §113.3 (a)
(2) found at
http://www.pacode.com/
See 1099R Filing
General Instructions and
separately, 2012 and
2013 Rev 1716
schedule and efile
instructions in pdf that
can be downloaded at
http://www.revenue.stat
e.pa.us/portal/server.pt/
community/employer_wi
thholding_tax/14705
Note, PA does not
generally tax amounts
reported in Box 7 on the
1099-R with codes 3
(disability),4 (death), 7
(normal retirement), G
or H (rollovers).
However, this may not
be true for private
annuities. See Table 1.
Rhode Island
(as of
12/14/2012)
A percentage
method or wage
tables may be
used. Federal
W-4P
allowances may
be a vehicle to
use Rhode
Island wage
Supplemental rate
at 5.99%
See
http://www.tax.ri.g
ov/forms/2013/Wit
hholding/2013%2
0RI%20Employer'
s%20Withholding
Payers may withhold
Rhode Island personal
income tax at the
request of the payee
even though the income
may not be subject to
withholding. See FAQ
13 which explains the
need for payees to
http://www.tax.ri.gov/for
ms/2013/Withholding/20
13%20RI%20Employer'
s%20Withholding%20Ta
bles.pdf
Rhode Island General
Laws Ch. 44-30
Personal Income Tax
State
Periodical
Calculation
Nonperiodical
Calculation
Applies to
periodical
payments from
QRPs, life
insurance
contracts,
commercial
annuities, and
endowment
contracts. QRPs
include IRC
'401(a), including
'401(k), '403(a)
and (b), and
governmental '457
plans.
Applies to
nonperiodical
payments such as
lump sums from
QRPs, life insurance
contracts, commercial
annuities, and
endowment contracts,
and to all taxable IRA
distributions.
tables for
periodic
payments.
However, DOT
says that given
the changes in
the RI Personal
Income Tax
system, they will
allow the
number of
exemptions on
the RI W-4 to be
different from the
federal form.
Minimum
Percentage
Rate
Minimum
Dollar
Amount
Comments
%20Tables.pdf
make quarterly tax
installments at
http://www.tax.ri.gov/info
/2011%20Withholding%
20FAQs.pdf
Withholding is
voluntary unless
missing TIN or
presented with
ITIN (see
comment column):
Caution: South Carolina
covers retirement plan
and annuity payments
(all 1099-R reportable
payments) in the 7%
withholding category if
Authority with
Hyperlink
Other Authority
The 2013 Withholding
Tax Tables are the
same as the 2012
Withholding Tax Tables.
See withholding tables
at
South Carolina Code of
Regulations §§12-8-520,
12-8-600
See 2013 tables
at
http://www.tax.ri.
gov/forms/2013/
Withholding/201
3%20RI%20Em
ployer's%20With
holding%20Tabl
es.pdf and 2012
tables at
http://www.tax.ri.
gov/forms/2012/
Withholding/201
2%20Withholdin
g%20Tables%20
Booklet.pdf
South Carolina
(as of
10/23/2013)
Withholding is
voluntary unless
missing TIN or
presented with
ITIN (see
comment
State
Periodical
Calculation
Nonperiodical
Calculation
Applies to
periodical
payments from
QRPs, life
insurance
contracts,
commercial
annuities, and
endowment
contracts. QRPs
include IRC
'401(a), including
'401(k), '403(a)
and (b), and
governmental '457
plans.
Applies to
nonperiodical
payments such as
lump sums from
QRPs, life insurance
contracts, commercial
annuities, and
endowment contracts,
and to all taxable IRA
distributions.
Comments
Authority with
Hyperlink
missing a correct TIN or
if they have provided an
ITIN under the Illegal
Immigration Reform Act.
See Table 1. Under
Illegal Immigration
Reform Act, payers
withhold 7% on any
Form 1099 reportable
payments if the payee
has failed to provide a
correct TIN or has
provided an ITIN except
for payments to NRA
who has furnished Form
8233 claiming exemption
from federal tax
withholding under the
terms of a tax treaty. In
determining whether a
TIN is correct, payers
are supposed to make a
“reasonable
investigation.” In
discussions, SC has
indicated that the rules
apply to retirement plan
distributions.
http://www.sctax.org/Ta
x+information/Withholdi
ng+Tax/default.htm
South Dakota
No state income tax
http://www.state.sd.us/d
rr2/revenue.html
Tennessee
No state income tax
http://www.state.tn.us/re
venue/tntaxes/indinc.ht
m
Texas
No state income tax
http://www.state.tx.us/
column):
Under voluntary
agreement,
suggest use
wage tables or
computation
formula with
rates between
2% and 7%;
suggest use of
allowances on
W-4P
Under voluntary
agreement,
suggest use of
supplemental rate
at 7%
Minimum
Percentage
Rate
Minimum
Dollar
Amount
See Business Guide at:
http://www.sctax.org/NR
/rdonlyres/321BA22EF158-472F-9B54F5A4026BBA25/0/2012
BusinessTaxGuide_rev0
612.pdf
General withholding
information at
http://www.sctax.org/Ta
x+Information/Withholdi
ng+Tax/GenInfo.htm
and Form 105 at
http://www.sctax.org/NR
/rdonlyres/339F539C5197-49C6-873BA0D8E1832DF9/0/Form
105_070912.pdf
Other Authority
State
Utah (as of
7/21/ 2013)
Vermont
(as of 5/3/2013)
Periodical
Calculation
Nonperiodical
Calculation
Applies to
periodical
payments from
QRPs, life
insurance
contracts,
commercial
annuities, and
endowment
contracts. QRPs
include IRC
'401(a), including
'401(k), '403(a)
and (b), and
governmental '457
plans.
Applies to
nonperiodical
payments such as
lump sums from
QRPs, life insurance
contracts, commercial
annuities, and
endowment contracts,
and to all taxable IRA
distributions.
There is no deduction for exemption
allowances when calculating payee
income (as in the federal calculation).
Instead, Utah allows a credit against
the withholding tax calculated, which is
phased-out as income increases. Utah
tax schedules and tables incorporate
this credit and the phase-out is built
into the calculations. Use payee's W4P marital status and allowances to
access Utah income tax withholding
tables in Utah Pub. 14.
Wage tables or
wage charts
from allowances
on W-4VT
27% of the
amount of federal
withholding (2.7%
if federal w/h is
10%)
Minimum
Percentage
Rate
Minimum
Dollar
Amount
Comments
Authority with
Hyperlink
Other Authority
In correspondence from
Utah to Cokala dated
August 3, 2011, the
agency has indicated
that withholding from
QRP, IRA and annuity
distributions is upon the
election of the payee. A
payee's request is made
by the payee in writing
to the person making
the payments. Agency
states that where
request is made, wage
rules are to be followed.
Therefore, in any case
for withholding to take
place, payers need
written notice from
payee regarding
allowances and marital
status to use tables. No
provision for
supplemental rates.
See withholding tables
and instructions at
http://tax.utah.gov/forms
/pubs/pub-14.pdf
http://tax.utah.gov/forms
/pubs/pub-14.pdf
Utah Code Ann. §§5910-404 at
http://www.le.utah.gov/c
ode/TITLE59/htm/59_10
_040400.htm
If no W-4VT and there is
federal withholding on
periodical payments,
then use W-4P
allowances. If an
additional amount of
withholding is shown on
See 2013 withholding
tables
and charts at
http://www.state.vt.us/ta
x/businesswithholding.s
html
UC 59-10-405 at
http://www.le.utah.gov/U
tahCode/getCodeSectio
n?code=59-10-405
See Utah Rules R8659I-14 and 15 at
http://tax.utah.gov/comm
ission/r865-09i
See also
http://tax.utah.gov/forms
/pubs/pub-14.pdf
and
http://tax.utah.gov/withh
olding/information#03
See 2012 Vermont
"Income Tax
Withholding Tables and
Instructions" at
http://www.state.vt.us/ta
x/pdf.word.excel/busines
s/Withholding%20instruc
State
Periodical
Calculation
Nonperiodical
Calculation
Applies to
periodical
payments from
QRPs, life
insurance
contracts,
commercial
annuities, and
endowment
contracts. QRPs
include IRC
'401(a), including
'401(k), '403(a)
and (b), and
governmental '457
plans.
Applies to
nonperiodical
payments such as
lump sums from
QRPs, life insurance
contracts, commercial
annuities, and
endowment contracts,
and to all taxable IRA
distributions.
Minimum
Percentage
Rate
Minimum
Dollar
Amount
Comments
the federal W-4P, 27%
of this amount should be
withheld as additional
Vermont withholding.
Virginia (as of
12/30/2012)
Wage tables
use w/h tax
calculator at
http://www.tax.vi
rginia.gov/site.cf
m?alias=WHCal
culator
Tables can be
found at
http://www.tax.vi
rginia.gov/taxfor
ms/Business/Wit
hholding%20Tax
/Employer%20W
ithholding%20Ta
bles.pdf
Washington
If the payment is
subject to
mandatory federal
withholding of
20% or if
payments are not
made on a regular
basis (lump
sums), withhold
Virginia
tax at a rate of 4%
If the pension or annuity
payment is subject to
mandatory federal
withholding of 20% or if
payments are not made
on a regular basis (lump
sums), withhold Virginia
tax at a rate of 4%.
IRAs are exempt from
withholding, but can be
made subject to a
voluntary agreement.
Format is unspecified.
No state income tax
Authority with
Hyperlink
Other Authority
tions%202012.pdf
New legislation passed
by VT Senate and
House, but in different
versions, if enacted into
law would impose a 3%
minimum personal
income tax on taxpayers
with federal adjusted
gross income exceeding
$125,000, beginning
with the 2013 tax year
that could change the
withholding tables. [H.B.
528, Proposal of
Amendment, as passed
by the Vermont Senate
on May 1, 2013]
http://www.tax.virginia.g
ov/site.cfm?alias=Withh
oldingTax#withhold
See TB 23 at
http://www.state.vt.us/ta
x/pdf.word.excel/legal/tb
/TB23rev011312.pdf
Commonwealth of
Virginia "Withholding
Tax Guide" at:
http://www.tax.virginia.g
ov/taxforms/Business/Wi
thholding%20Tax/Emplo
yer%20Withholding%20I
nstructions.pdf
State
West Virginia
(as of
05/22/2013)
Periodical
Calculation
Nonperiodical
Calculation
Applies to
periodical
payments from
QRPs, life
insurance
contracts,
commercial
annuities, and
endowment
contracts. QRPs
include IRC
'401(a), including
'401(k), '403(a)
and (b), and
governmental '457
plans.
Applies to
nonperiodical
payments such as
lump sums from
QRPs, life insurance
contracts, commercial
annuities, and
endowment contracts,
and to all taxable IRA
distributions.
Minimum
Percentage
Rate
Minimum
Dollar
Amount
Amount as specified by taxpayer on
line 6 of WV IT-104
Comments
Rounded to nearest $
When requesting
withholding from
pension and annuity
payments payees are
instructed to provide a
completed IT-104
to the payer, entering
the amount to withhold
on line 6. See Tables 1
and 3.
Authority with
Hyperlink
Other Authority
WV IT-104 at:
http://www.wva.state.wv
.us/wvtax/withholdingTa
xForms.aspx
Employer's Withholding
Instructions at
http://www.state.wv.us/t
axrev/publications/tsd/ts
d381.pdf
and
http://www.state.wv.us/t
axrev/tsdPublications/ts
d428.pdf
See also
http://www.state.wv.us/t
axrev/publications/tsd/ts
d100.pdf
WV IT-104 at:
http://www.wva.state.wv.
us/wvtax/withholdingTax
Forms.aspx
Wisconsin (as
of 10/08/2013)
Withholding tables at
http://www.revenue.wi.gov/pubs/pb166
.pdf or amount designated by
taxpayer.
On June 30, 2013, Governor Walker
signed the 2013-15 budget into law,
using his veto power to make mostly
small changes to the budget, but not
affecting the tax provisions. Although
the new law retroactively reduces all
marginal tax rates under the personal
income tax and decreases the number
of brackets from five to four, effective
for tax years beginning after 2012, the
The request
must be in
writing and
the amount
withheld from
each payment
must be $5 or
more.
http://www.revenue.wi.g
ov/pubs/pb166.pdf
See also
http://www.revenue.wi.g
ov/ise/with/12-1.pdf and
http://www.revenue.wi.g
ov/pubs/pb126.pdf
which cover retirement
plan treatment.
On June 30, 2013,
Governor Walker signed
the 2013-15 budget into
law, using his veto
power to make mostly
See
http://www.revenue.wi.g
ov/pubs/pb166.pdf
and
http://www.revenue.wi.g
ov/ise/with/12-1.pdf
State
Periodical
Calculation
Nonperiodical
Calculation
Applies to
periodical
payments from
QRPs, life
insurance
contracts,
commercial
annuities, and
endowment
contracts. QRPs
include IRC
'401(a), including
'401(k), '403(a)
and (b), and
governmental '457
plans.
Applies to
nonperiodical
payments such as
lump sums from
QRPs, life insurance
contracts, commercial
annuities, and
endowment contracts,
and to all taxable IRA
distributions.
Wisconsin Department of Revenue
has decided not to change the income
tax withholding tables for 2013 or
2014. See
http://www.revenue.wi.gov/pubs/pb166
.pdf and
http://www.revenue.wi.gov/taxpro/new
s/130930.html
Under the new law, the rates are
reduced beginning in 2013 from 4.6%
to 4.4%, from 6.15% to 5.84%, from
6.5% to 6.27%, from 6.75% to 6.27%,
and from 7.75% to 7.65%. [A.B. 40]
Although some of the new legislation
was partially vetoed, the critical tax
components have been retained.
Payees could change their withholding
elections to reduce withholding in light
of the lower rates.
Remember that withholding on
retirement distributions is optional on
the part of payee. A rule regarding
withholding from wages has been
amended to reflect that retirement pay
and pension are not part of the
statutory definition of withholdable
"wages." [Rule 2.90 (6) Wisconsin
Department of Revenue, effective
September 1, 2013]
Minimum
Percentage
Rate
Minimum
Dollar
Amount
Comments
Authority with
Hyperlink
small changes to the
budget, but not affecting
the tax provisions. The
new law retroactively
reduces all marginal tax
rates under the personal
income tax and
decreases the number
of brackets from five to
four, effective for tax
years beginning after
2012. Specifically, the
rates would be reduced
from 4.6% to 4.4%, from
6.15% to 5.84%, from
6.5% to 6.27%, from
6.75% to 6.27%, and
from 7.75% to 7.65%.
[A.B. 40] Although
some of the new
legislation was partially
vetoed, the critical tax
components have been
retained. The DOR has
announced that it will
not change withholding
tables for 2013 or 2014.
See
http://www.revenue.wi.g
ov/pubs/pb166.pdf and
http://www.revenue.wi.g
ov/taxpro/news/130930.
html
Remember that
withholding on
retirement distributions
is optional on the part of
payee. A rule regarding
Other Authority
State
Periodical
Calculation
Nonperiodical
Calculation
Applies to
periodical
payments from
QRPs, life
insurance
contracts,
commercial
annuities, and
endowment
contracts. QRPs
include IRC
'401(a), including
'401(k), '403(a)
and (b), and
governmental '457
plans.
Applies to
nonperiodical
payments such as
lump sums from
QRPs, life insurance
contracts, commercial
annuities, and
endowment contracts,
and to all taxable IRA
distributions.
Minimum
Percentage
Rate
Minimum
Dollar
Amount
Comments
Authority with
Hyperlink
Other Authority
withholding from wages
has been amended to
reflect that retirement
pay and pension are not
part of the statutory
definition of
withholdable "wages."
[Rule 2.90 (6) Wisconsin
Department of Revenue,
effective September 1,
2013]
Wyoming
No state income tax
http://revenue.state.wy.u
s/
Table Copyright 2007-2013 COKALA Tax Information Reporting Solutions, LLC. Permission for internal use by COKALA client companies.
Table 2 updated in 2013 on 11/10, 11/1, 10/30, 10/28, 10/24, 10/23, 10/15, 10/10, 10/8, 10/7, 10/4, 10/3, 10/2, 10/1, 9/12, 8/14, 8/13, 8/12, 8/1, 7/24, 7/21, 7/8, 7/3, 6/27, 6/24, 6/20, 6/17, 6/14, 6/7, 6/6,
6/5, 6/4, 6/3, 5/22, 5/17, 5/16, 5/13, 5/10, 5/3, 4/29, 4/28, 4/24, 4/17, 4/3, 3/27, 3/13, 2/28, 2/15, 2/1, 1/24, 1/21, 1/14, 1/13, 1/9, 1/7, 1/3