Formula Method vs Tax Tables


The Formulas method numbers don't match state tax tables used in MacNail construction payroll software . Payroll deductions don't match the booklet or online state withholding tables for employee wages .


1. the formula method is more accurate, it may differ slightly from tax tables since tax tables are based on an average for a range of amounts. If difference is less than $1 it is probably due to this.
2. if major difference in state, may be unusual deduction situation- check other payroll entries for state-specific info.


If difference is > $1 we can check the calc again against the tax tables. It may be a bug in our calculations, though a couple of times we have actually found errors in the tax tables!


Entered 11/9/92 by Vinay. Updated 11/23/2010.