Formula Method vs Tax Tables

Problem

The Formulas method numbers don't match state tax tables
payroll deductions are not correct, accurate for employee withholding done from MacNail Construction Payroll Software

Diagnosis

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.

Solution

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!

Comments

Entered 11/9/92 by Vinay.