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What is a tax table?

A tax table is the method used by federal, state, and local tax agencies to determine withholding amounts. QuickBooks uses tax tables to determine the rates and limits for federal, state, and specific local taxes.

Because of the frequent changes to payroll tax regulationsat both the federal and state level, the tax tables in QuickBooks eventually become outdated. For example, if withholding information changes, you need a new tax table so that QuickBooks withholds the correct amount of tax from each employee's wages.

To help ensure compliance with changing payroll tax withholding regulations, we strongly recommend that you maintain an active subscription to QuickBooks Payroll.

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