California Payroll Tax is Off


California payroll calculations don't match the tax table used in MacNail construction payroll software. CA formulas not doing withholding correctly!


1. Make sure they are using the table correctly. They are supposed to look up the wage AFTER subtracting for exemptions (unlike the federal and most states, which figure exemptions into the tables and have you look up the gross wage).


It appears that either the tax table instructions or the numbers are in error (1996 tables, also 1995).
We've checked our results against the formula method examples they use, and everything matches to the penny. It appears that ALL our calculations don't match the tables, when the table method is used.


Entered 2/1/96 by Dennis. Updated 11/22/2010.