Why are federal and state withholding calculations in QuickBooks different
than the printed wage bracket tables?
You may notice differences between calculations by QuickBooks and printed
wage bracket taxes. payroll taxes, paychecks, withholding taxes from, payroll taxes (federal), withholding, payroll taxes (state), withholding, tax tables, federal and state withholding calculations, withholding, calculations, . QuickBooks uses the more accurate percentage method and tax
tables that are annualized (rather than weekly, biweekly, or monthly) to
calculate its figures. payroll taxes, paychecks, withholding taxes from, payroll taxes (federal), withholding, payroll taxes (state), withholding, tax tables, federal and state withholding calculations, withholding, calculations, . Small discrepancies of less than $1.00 for any single
state or local tax, and up to $6.00 for federal tax, are acceptable.
Both methods are correct and acceptable to the IRS.
The following example shows how QuickBooks calculates these amounts.
Mary Smith receives a semimonthly paycheck. payroll taxes, paychecks, withholding taxes from, payroll taxes (federal), withholding, payroll taxes (state), withholding, tax tables, federal and state withholding calculations, withholding, calculations, . Mary's Form W-4 states that
she is single with one withholding allowance. payroll taxes, paychecks, withholding taxes from, payroll taxes (federal), withholding, payroll taxes (state), withholding, tax tables, federal and state withholding calculations, withholding, calculations, . She is also subject to California
state taxes with the same filing status. payroll taxes, paychecks, withholding taxes from, payroll taxes (federal), withholding, payroll taxes (state), withholding, tax tables, federal and state withholding calculations, withholding, calculations, . She earns $7.95 per hour and worked 73
hours in this period. payroll taxes, paychecks, withholding taxes from, payroll taxes (federal), withholding, payroll taxes (state), withholding, tax tables, federal and state withholding calculations, withholding, calculations, . Her gross taxable wages are $580.35.
The tax amounts for this period are: