Tax Withholding Exemptions
October 31st, 2010
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Question: How do you calculate paycheck state Tax Withholding?
Let’s say the net pay on the paycheck is $675.15 before tax deductions. The employee is married and does not have any exemptions as well as claim 0 allowences on the W4
I used the online calculator but it does not tell how the calculations were performed. I would really appreciate your help!Answer: Kay08,
TheFica is Gross wages times 6.2 percent (There is a wage base maximum, and then they stop withholding Fica)
The Medicare is Gross wages times 1.45 percent
The Federal, they use tax charts. get a hold of Publication Circular E. on the irs website (www.irs.gov)
They use tax tables
Same with the State. they use tax tablesHope this helps
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State Withholding Tax: Simply Stated
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