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Federal Withholding Calculator

Assistance with Determining Your Federal Withholding

To change the amount of the federal withholding tax you have withheld from your PSERS benefit payment, PSERS offers a Federal Withholding Calculator to assist you.  While the use of the calculator does not replace having to complete and submit a W-4P (PDF)form to PSERS, it helps to ensure you select the marital status and allowances (exemptions) you need to achieve the federal withholding amount that will be beneficial to you.  

Tips for Using the Federal Withholding Calculator  

The Federal Withholding Calculator can show you your potential federal tax withholding amount based just on just the gross amount of your PSERS monthly benefit payment or you can include other taxable funds.   

To determine what amount would be withheld on your PSERS monthly benefit payment, you would enter the gross amount of your monthly benefit in the field entitled “Enter gross monthly amount.”  To include additional taxable income you receive during the month from other sources, you may add that gross amount to the gross amount of your PSERS benefit payment and enter the total amount in the “Enter gross monthly amount” field.  

Remember, to ensure an accurate withholding amount, you need to enter the gross amount of your monthly benefit payment and not the net amount.  The net is the amount that remains after all deductions are applied to the gross amount.    

Enter deductions other than federal withholding taxes in the field labeled “Enter other deductions.”  Other deductions would include items such as your Health Options Program (HOP) medical insurance payment, child support, an IRS tax lien, etc.  This amount will be deducted from the gross amount you entered to determine your net monthly pension payment after the federal withholding amount is applied.  

After you enter the dollar amount(s) and click “calculate.” a table will appear that provides you with the marital status and number of allowances (exemptions), the amount of federal taxes that will be withheld by selecting that particular marital and allowance combination, any other deductions from the gross (if applicable) and the resulting net monthly payment amount.   

In this limited example, entering a gross monthly benefit payment amount of $3,000 with additional deductions of $280 for a HOP payment would result in the following:

 

Amount Withheld

Other Deductions

Net Monthly Pension

Single - 0 Allowances:

$388.00

$280.00

$2,332.00

Single - 1 Allowances:

$342.00

$280.00

$2,378.00

Single - 2 Allowances:

$296.00

$280.00

$2,424.00

Using the same example also shows what would happen if the tax liability based on the marital status and allowances would result in no federal withholding, as shown in the “Married – 8 Allowances” and “Married – 9 Allowances” Amount Withheld results -

 

Amount Withheld

Other Deductions

Net Monthly Pension

Married - 7 Allowances:

$18.00

$280.00

$2,702.00

Married - 8 Allowances:

$0.00

$280.00

$2,720.00

Married - 9 Allowances:

$0.00

$280.00

$2,720.00

Please note:  If you select a federal withholding marital status and allowance rate that results in no federal taxes being withheld, that does not mean you do not have to pay federal taxes.  It only means you selected a marital status and allowance combination that prevents PSERS from withholding the funds. 

Changing Your Federal Withholding Amount  

You may change your federal withholding rate at anytime.  To change your withholding amount, you must complete, sign, and submit a W-4P (PDF) form to PSERS.  Due to payroll processing time frames, it can take
up to 8 weeks for the change to go into effect.