Backup withholding under IRC 3406 is a flat 24% of a reportable payment when the payee has no valid TIN, or the IRS has told the payer to start it. Typical bases: interest, dividends, and contractor pay on a Form 1099. It is not Form W-4 wage withholding and it is not FICA.
On $10,000: withheld $2,400, net to the payee $7,600.
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The live tool multiplies by 24%. It does not decide whether backup withholding applies to your facts. See IRS backup withholding. Estimate, not tax advice.
Direct answer: $10,000 → $2,400
- Withheld = $10,000 × 0.24 = $2,400
- Net = $10,000 − $2,400 = $7,600
There is no wage-base cap on this page. The payment amount is the base.
withheld = reportable payment × 24% net to payee = payment − withheld
Checks you can re-run
| Reportable payment | 24% withheld | Net |
|---|---|---|
| $500 | $120 | $380 |
| $1,000 | $240 | $760 |
| $5,000 | $1,200 | $3,800 |
| $10,000 | $2,400 | $7,600 |
| $25,000 | $6,000 | $19,000 |
How this differs from a W-2 cut
| Cut | Rule | Example |
|---|---|---|
| Backup withholding | Payment × 24% | $10,000 → $2,400 |
| Federal wage withholding | Pub 15-T / W-4 | $1,000 weekly single → $97.92 FIT |
| Employee FICA | 6.2% + 1.45% | On FICA wages |
A contractor who does have a TIN still owes SECA and income tax. That is self-employment take-home, then estimated tax safe harbor. Backup withholding is what happens when the payer cannot use the TIN path.
Wage FIT on a W-2 is federal tax withholding.
What this is not
- Not a bonus. Supplemental W-2 wages use 22% (or 37% over $1M): bonus tax.
- Not 401(k) rollover withholding. An eligible rollover paid to you is 20%: 401(k) rollover withholding.
- Not a decision that you "should" be backup withheld. Give the payer a correct TIN on Form W-9 when that is the fact pattern.
For IRC 3406 on this calculator, yes. $10,000 → $2,400. $1,000 → $240.
Often as a credit on Form 1040 if actual tax is lower. That is a filing question, not this multiplier.
Not as employee FICA. Self-employment tax is a different statute. This page only does 24%.