Tax rate used in calculating Alabama state tax for year 2008

Withholding Formula (Effective Pay Period 11, 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 times 26 to obtain the gross annual wages.
5. Determine the personal exemption by applying the following guideline and subtract this amount from the gross wages to compute the taxable income.
   
   

Tax Withholding Table Zero or Single (Filing Status S)

If the Amount of Taxable Income Is:		The Standard Deduction Amount Is:
Over:	But Not Over:

$ 0	$ 20,000	$ 2,500
20,000	20,500	2,475
20,500	21,000	2,450
21,000	21,500	2,425
21,500	22,000	2,400
22,000	22,500	2,375
22,500	23,000	2,350
23,000	23,500	2,325
23,500	24,000	2,300
24,000	24,500	2,275
24,500	25,000	2,250
25,000	25,500	2,225
25,500	26,000	2,200
26,000	26,500	2,175
26,500	27,000	2,150
27,000	27,500	2,125
27,500	28,000	2,100
28,000	28,500	2,075
28,500	29,000	2,050
29,000	29,500	2,025
29,500	and over	2,000




Married - Filing Separately (Filing Status N)

If the Amount of Taxable Income Is:		The Standard Deduction Amount Is:
Over:	But Not Over:

$ 0	$ 10,000	$ 3,750
10,000	10,250	3,662
10,250	10,500	3,574
10,500	10,750	3,486
10,750	11,000	3,398
11,000	11,250	3,310
11,250	11,500	3,222
11,500	11,750	3,134
11,750	12,000	3,046
12,000	12,250	2,958
12,250	12,500	2,870
12,500	12,750	2,782
12,750	13,000	2,694
13,000	13,250	2,606
13,250	13,500	2,518
13,500	13,750	2,430
13,750	14,000	2,342
14,000	14,250	2,254
14,250	14,500	2,166
14,500	14,750	2,078
14,750	and over	2,000




Married (Filing Status M)

If the Amount of Taxable Income Is:		The Standard Deduction Amount Is:
Over:	But Not Over:

$ 0	$ 20,000	$ 7,500
20,000	20,500	7,325
20,500	21,000	7,150
21,000	21,500	6,975
21,500	22,000	6,800
22,000	22,500	6,625
22,500	23,000	6,450
23,000	23,500	6,275
23,500	24,000	6,100
24,000	24,500	5,925
24,500	25,000	5,750
25,000	25,500	5,575
25,500	26,000	5,400
26,000	26,500	5,225
26,500	27,000	5,050
27,000	27,500	4,875
27,500	28,000	4,700
28,000	28,500	4,525
28,500	29,000	4,350

29,000	29,500	4,175
29,500	and over	4,000




Married - Head of Household (Filing Status H)

If the Amount of Annual Wages Is:		The Standard Deduction Amount Is:
Over:	But Not Over:

$ 0	$ 20,000	$ 4,700
20,000	20,500	4,565
20,500	21,000	4,430
21,000	21,500	4,295
21,500	22,000	4,160
22,000	22,500	4,025
22,500	23,000	3,890
23,000	23,500	3,755
23,500	24,000	3,620
24,000	24,500	3,485
24,500	25,000	3,350
25,000	25,500	3,215
25,500	26,000	3,080
26,000	26,500	2,945
26,500	27,000	2,810
27,000	27,500	2,675
27,500	28,000	2,540
28,000	28,500	2,405
28,500	29,000	2,270
29,000	29,500	2,135
29,500	and over	2,000



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

If the Employee Claims the Following Withholding Exemption Status:	The Personal Exemption Allowance Is:
Zero	$ 0
Single or Married Filing Separate	1,500
Married or Head of Household	3,000



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

If the Amount of Annual Wages Is:		The Amount Per Dependent Is:
Over:	But Not Over:

$ 0	$ 20,000	$ 1,000
20,000	100,000	500
100,000	and over	300



10. If the employee is claiming "0" (ZERO), SINGLE, MARRIED FILING SEPARATELY or HEAD OF HOUSEHOLD, apply the following tax rate the annualized taxable wages to determine the annual amount.
11. 
    

Zero Single Married - Filing Separately Head of Household

If the Amount of Annual Taxable Wages Is:

The Amount of Tax Is:

Over:

But Not Over:

$ 0	$ 500	$ 0	plus	2.0%	$ 0
500	3,000	10	plus	4.0%	500
3,000	and over	110	plus	5.0%	3,000



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

Married

If the Amount of Annual Taxable Wages Is:		The Amount of Tax Is:
Over:	But Not Over:
$ 0	$ 1,000	$ 0	plus	2.0%	$ 0
1,000	6,000	20	plus	4.0%	1,000
6,000	and over	220	plus	5.0%	6,000



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