Breaktru Forum

Payroll Software => General Discussion: Payroll Software => Tax Tables => Topic started by: Breaktru on November 15, 2008, 08:27:03 AM

Title: Tax calculation differs from Employers Supplemental Tax Guide
Post by: Breaktru on November 15, 2008, 08:27:03 AM
Customer.........
I am comparing your payroll tax deductions w/ the Employers supplemental tax guide from the irs for year. The deductions are off by several cents is this correct or is your program miscalculating? For example, for your payroll off of a $300 pay, taxes are equalling $54.65 the supplemental tax guide from irs says it should be $55.33 is this correct. This figure is for a weekly single person.\

Reply..........
The supplement you are looking at is a table which calculates a range and not an exact calculation. If you use the Federal Percent method as Payroll does you will come up with an EXACT calculation. The table shows a range of $300 to $310. The middle of the road range would be $305 and the deduction would be closer to $55.78

On page 30 of your supplement there is the percent method for the Fed withholding and $300 is a deduction of $31.6995. My program rounded it to $31.70.
Social Sec rate is 6.2% . This would be 300 x .062 = 18.60
Medicare rate is 1.45%. This would be 300 x .0145 = 4.35

So in conclusion: 31.70 + 18.60 + 4.35 = $54.65 not the approximate table range of 55.33