The TAX MULTIPLIER FORM is a mechanism used by the payroll system to prevent the "ballooning" of taxes when an employee's gross pay during one pay period is greater than normal.  The use of the tax multiplier causes withholding to continue at the same rate.  However, if additional pay may put you in another tax bracket, your taxes could be underwithheld and you could owe taxes with your tax return.

Use the following example to compute the tax multiplier:

            Annual Salary of $36,000 = $1500 per pay period and $2700 add pay

                    $2700 + $1500 = $4200 total pay for the pay period.

                                $4200/$1500 = 2.8 tax multiplier

        This pay period's earnings are 2.8 times the normal pay periods earnings.

Use this example to compute the tax multiplier based on your particular salary and additional pay situation.

The higher the tax multiplier, the lower the taxes.
 

Please use a tax multiplier of ______ OR (   ) Please compute the tax multiplier for me.
 

For payday__________________________
 

Name_____________________________________
 

SSN_________________________
 

Signature_______________________________________________________________

This form MUST be submitted 7 days prior to the payday additional pay is to be paid.