About Withhold Right
The basics — what the calculator does, who it is for, and what it costs.
Is Withhold Right free?
Yes. The calculator is completely free with no account, no trial, and no feature gating. All calculations run in your browser.
Who is Withhold Right for?
Small business owners, bookkeepers, and HR staff who run their own payroll and need to verify per-paycheck federal, FICA, and state withholding without subscribing to payroll software.
Is my employees’ data stored?
No. Every calculation runs client-side in your browser. No wage, W-4, or personal information is transmitted to or stored by Withhold Right.
Is this a replacement for payroll software?
No. Withhold Right calculates withholding amounts. It does not file tax deposits, generate W-2s, track employee records, or handle multi-state employees. It is a verification tool, not a full payroll service.
Federal Withholding
Questions about IRS Publication 15-T and the percentage method.
How is federal income tax withholding calculated?
Withhold Right uses the percentage method from IRS Pub 15-T for automated payroll systems. It annualizes gross wages, applies the Table 1 deduction for the employee’s filing status, runs the Table 2 bracket schedule, subtracts dependent credits, and de-annualizes back to the pay period.
What does the Step 2(c) checkbox on the W-4 do?
Step 2(c) signals that the employee has multiple jobs or a working spouse. When checked, the employer uses a different bracket schedule in Pub 15-T that shifts the 0% zone dramatically lower — resulting in more withholding per paycheck to cover the higher household income.
How do dependents on the W-4 reduce withholding?
Step 3 converts dependents into an annual credit: $2,000 per qualifying child under 17, $500 per other dependent. That annual credit is subtracted from the calculated annual tax after the bracket schedule runs — not before.
Are bonuses taxed at a higher rate than regular wages?
No. The 22% flat rate on supplemental wages is a withholding convention, not a tax rate. The employee’s actual income tax on that bonus is determined on their annual return like all other income. See the bonus withholding guide for details.
FICA (Social Security + Medicare)
Questions about the 6.2% and 1.45% rates, wage bases, and thresholds.
What is FICA?
FICA (Federal Insurance Contributions Act) funds Social Security and Medicare. Employers withhold 6.2% for Social Security (up to the annual wage base) and 1.45% for Medicare (no cap), plus an additional 0.9% Medicare above a threshold, from every paycheck. The employer matches the Social Security and Medicare portions, but not the additional 0.9%.
What is the Additional Medicare Tax?
An extra 0.9% Medicare tax applies to wages above $200,000 paid to a single employee in the calendar year. Employers withhold it regardless of the employee’s filing status; the employee reconciles it on their annual return.
State Withholding
Which states are supported and how state withholding differs from federal.
Which states does Withhold Right support?
State income tax is calculated for Colorado, Georgia, Illinois, Indiana, Kentucky, Massachusetts, Michigan, North Carolina, Oklahoma, Pennsylvania, and Virginia. Nine additional no-income-tax states are also supported for federal + FICA only: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming.
What is the difference between a flat-rate and a bracket state?
Flat-rate states (Colorado, Illinois, Michigan, Pennsylvania, etc.) apply one percentage to taxable wages. Bracket states (Virginia, 2026 Oklahoma) use a progressive schedule with rising rates at higher income levels.
Does it calculate local taxes like PA EIT or Indiana COIT?
No. Withhold Right calculates state-level withholding only. Local taxes like Pennsylvania Earned Income Tax, Indiana County Option Income Tax, or Ohio city taxes are not included. Check with your local tax collector for those.
Bonuses & Supplemental Wages
Questions about the 22% flat rate, the 37% threshold, and what counts as supplemental.
What federal rate is used on bonuses in 2026?
22% under $1 million in cumulative supplemental wages for the year, 37% on the excess above that threshold. These rates are set by IRS Pub 15, Section 7.
What counts as a supplemental wage?
Bonuses, commissions, overtime pay, severance pay, back pay, retroactive raises, awards, prizes, taxable fringe benefits, accumulated sick pay, and taxable moving expense reimbursements.
Do states have their own bonus rates?
Yes. Flat-rate states use the same rate for bonuses as regular wages. Bracket states typically offer an optional flat supplemental rate equal to the top marginal bracket.
Accuracy & Liability
How accurate the calculator is and what it is not.
How accurate is Withhold Right?
Results are based directly on IRS Pub 15-T 2026 and official state revenue authority withholding instructions. For standard W-4 inputs, results match the published withholding tables. Edge cases (locked-in letters, multi-state employees, unusual deductions) may need a tax professional.
Is this tax or legal advice?
No. Withhold Right is an estimate tool. It does not constitute tax or legal advice. Consult a CPA or tax attorney for guidance on your specific situation.
Who is liable if withholding is wrong?
The employer is liable to the IRS for the correct amount of federal income tax withheld, regardless of what tool they used to calculate it. Verifying the math with a second source is cheap insurance.
What is the 2026 Social Security wage base?
The Social Security wage base for 2026 is $184,500. Wages above this amount in the year are not subject to the 6.2% Social Security withholding. Medicare still applies to all wages with no cap.