Tax rate used in calculating North Dakota state tax for year 2008

Withholding Formula (Effective Pay Period 8, 2007)

1. Subtract the nontaxable biweekly Thrift Savings Plan contribution from the gross biweekly wages.
   
   
2. Subtract the nontaxable biweekly Federal Health Benefits Plan payment(s) (includes dental and vision insurance program, and flexible spending account - health care and dependent care deductions) from the amount computed in step 1.
   
   
3. Add the taxable biweekly fringe benefits (taxable life insurance, etc.) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.
   
   
4. Multiply the adjusted gross biweekly wages by 26 to obtain the annual wages.
   
   
5. Determine the exemption allowance by applying the following guideline and subtract this amount from the annual wages to compute taxable income:

   Exemption Allowance = $3,400 x Number of Exemptions

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

Tax Withholding Table Single or Head of Household
If the Amount of Taxable Income Is:		The Amount of North Dakota Tax Withholding Should Be:
Over:	But Not Over:				Of Excess Over:
$          0	$    3,600	$        0.00	plus	0.00%	$        0
3,600	33,800	0.00	plus	2.10%	3,600
33,800	71,200	634.20	plus	3.92%	33,800
71,200	162,600	2,100.28	plus	4.34%	71,200
162,600	351,000	6,067.04	plus	5.04%	162,600
351,200	and over	15,572.48	plus	5.54%	351,200





Married
If the Amount of Taxable Income Is:		The Amount of North Dakota Tax Withholding Should Be:
Over:	But Not Over:				Of Excess Over:
$           0	$      8,800	$        0.00	plus	0.00%	$        0
8,800	60,200	0.00	plus	2.10%	8,800
60,200	114,300	1,079.40	plus	3.92%	60,200
114,300	203,600	3,200.12	plus	4.34%	114,300
203,600	356,600	7,075.74	plus	5.04%	203,600
356,600	and over	14,786.94	plus	5.54%	356,600



7. Divide the annual North Dakota income tax withholding determined in step 6 by 26 and round to the nearest dollar to obtain the biweekly North Dakota income tax withholding.