How to Calculate 2016 Federal Income Withhold Manually

by admin 8. January 2016 08:28

EzPaycheck 2016 payroll software speeds up and simplifies payroll tax calculation, paycheck printing and tax reporting for small businesses. However if you like to calculate the taxes manually, you can find the step by step guide below

 

Karen is married, with 1 allowance. Her salary rate is $39000. She gets one pay check each month.

1. Her gross income for each paycheck is $3250

39000/12=$3250

2. Her standard deduction for each paycheck is $337.5

Year 2016 Standard Deduction is $4050

For each paycheck: 4050/12=$337.5

3. Her taxable income for each paycheck is:

3250-337.5=$2912.5

 

4. Federal tax

Check Monthly tax table for married person

http://www.halfpricesoft.com/federal_income_tax_2016.asp

154.5 + 15% x (2912.5-2258)=$252.68


able 4 -- Monthly Payroll Period

(a) SINGLE person (including head of household) --
If the amount of wages(after
subtracting withholding
allowances) is:
  The amount of income tax
to withhold is:
Not over $188.00.......   $0
Over -- But no over --     Of excess over --
$188.00 $960.00  ... 10% $188.00
$960.00 $3,325.00  ... $77.20 plus 15% $960.00
$3,325.00 $7,783.00  ... $431.95 plus 25% $3,325.00
$7,783.00 $16,033.00  ... $1,546.45 plus 28% $7,783.00
$16,033.00 $34,633.00  ... $3,856.45 plus 33% $16,033.00
$34,633.00 $34,775.00  ... $9,994.45 plus 35% $34,633.00
$34,775.00 ...  ... $10,044.15 plus 39.6% $34,775.00


(b) Married person --
If the amount of wages(after
subtracting withholding
allowances) is:
  The amount of income tax
to withhold is:
Not over $713.00.......   $0
Over -- But no over --     Of excess over --
$713.00 $2,258.00  ... 10% $713.00
$2,258.00 $6,988.00  ... $154.50 plus 15% $2,258.00
$6,988.00 $13,371.00  ... $864.00 plus 25% $6,988.00
$13,371.00 $20,000.00  ... $2,459.75 plus 28% $13,371.00
$20,000.00 $35,158.00  ... $4,315.87 plus 33% $20,000.00
$35,158.00 $39,625.00  ... $9,318.01 plus 35% $35,158.00
$39,625.00 ...  ... $10,881.46 plus 39.6% $39,625.00

 

Related Links

How to Calculate Federal Withholding Tax Automatically

http://www.halfpricesoft.com/payroll-software/calculate-federal-withholding-tax.asp

 

How to Generate After the Fact Paychecks and Create the Paystubs

http://www.halfpricesoft.com/payroll-software/after-fact-payroll-checks.asp

 

How to Print W2 Forms on White Paper

http://www.halfpricesoft.com/w2-software/print-w2-forms-blank-paper.asp

 

How to Print 1099 Forms

http://www.halfpricesoft.com/1099-misc-software/howto-file-print-1099-misc-forms.asp

 

Employment Tax Due Dates
http://www.halfpricesoft.com/employment_tax_due_dates.asp

 

 

EzPaycheck payroll software is designed to automate paycheck processes to reduce the time spent on running payroll. The software’s graphic interface leads users step-by-step through setting up employee information, importing data, calculating payroll—including calculation of federal, state and local taxes; deductions for Medicare, insurance and 401(k) plans; and printing paychecks.

 

Priced at just $89 per installation, ezPaycheck’s graphical interface and functions are so intuitive that even users without much computer or accounting experience can start automating payroll processes within minutes of installation. Additionally, customers can try ezPaycheck payroll software without cost or obligation for 30 days.

 small business payroll software

 

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What is 2015 Social Security tax rate

by admin 24. March 2015 06:53

Usually employers need to withhold Social Security tax from employees’ paychecks. The Social Security tax is a payroll tax that was started by the United States Government in the 1930s. This tax is imposed upon working people and their employers.

 

The 2015 tax rate for Social Security is 6.2% for the employer and 6.2% for the employee, or 12.4% total. The maximum wage that is subject to the tax for year 2015 is $118,500.

 

Refer to Publication 15, (Circular E), Employer's Tax Guide, for more information; or Publication 51, (Circular A), Agricultural Employer’s Tax Guide, for agricultural employers.

 

Both ezPaycheck payroll software and ezAccounting software can calculate Soecial Security tax and other payroll taxes automatically based on current tax table. 

 

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Payroll taxes

What Is New of 2015 Payroll Income Tax Rate

by admin 8. December 2014 05:29

IRS published Notice 1036, Early Release Copies of the 2015 Percentage Method Tables for Income Tax Withholding. Here are some majors changes an employer should know for Year 2015 payroll processing.

Social Security and Medicare Tax for 2015

- For social security, the tax rate is 6.2% each for the employee and employer, unchanged from 2014.
- The social security wage base limit is $118,500, and it was $117,000.00 in Year 2014
 
- The Medicare tax rate is 1.45% each for the employee and employer, unchanged from 2014. There is no wage base limit for Medicare tax.

 

IRS Announces new 2015 Tax Brackets and Standard Deduction

The new standard deduction for each dependent is $4000.00, which was $3950.00 in 2014.

 

You can view 2015 Payroll Income Tax Withhold Tables here to see tax brackets changes and more details. 

small business payroll software

purchase payroll software now free download payroll accounting software

 

 

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business news

Why is there no federal withholding taken out of my paycheck?

by admin 5. June 2013 04:41

Question: I have an employee. She is single with 3 allowances for federal tax withholding. She is paid at $21.79/hour and 21 hours per pay period. We paid her twice a month. I used your ezPaycheck payroll software to generate the paycheck.  However, I find $0 federal tax withhold on her paycheck. Is it correct? Why?

 

Answer: Your employee can claim allowances on the W-4. Each allowance will lower her taxable income.  The more allowances she claims the less federal income tax she pays; the less she claims, the more federal tax she pays.

 

The standard deduction is $3,900 per year (For Year 2013).

 

For your employee, her taxable income is not high enough to withhold federal tax. Here are the step by step calculations.

 

1. Gross pay for each paycheck:                                                               

$21.79*21 hours= $457.59                                                           

For each pay period, the gross pay is $457.59                     

                                                               

2. Deductions for each paycheck:    

                                                          

The standard deduction is $3,900 per year (For Year 2013).                                                          

 

She can get total deductions                                                      

$3,900   X             3 =          $11,700                

 

For each pay period the deduction is:                                                    

$11,700                 /              24           = $487.50            

                                                               

3. Taxable income for each paycheck                                                     

So for each paycheck, the taxable income is:                                                      

457.59   -              $487.50                 =             - $29.91

 

So for this employee, her taxable income is $0. So you will see $0 federal tax on this paycheck.

Related Links

  • How to calculate federal withholding tax using the percentage tables

http://www.halfpricesoft.com/payroll-software/how-to-calculate-federal-withholding-tax.asp

  • Federal Income Tax Tables

http://www.halfpricesoft.com/federal_income_tax_2013.asp

small business payroll software

purchase payroll software now free download payroll accounting software

 

Can ezPaycheck payroll handle multiple payroll rates in the same period for one employee?

by admin 1. February 2013 03:37

EzPaycheck payroll software is very flexible. Yes, it can handle multiple payroll rates in the same period for one employee.

 

Here is an example:

Employee XYZ works for two shifts during the same pay period. The pay rate for the first shift is $10. The pay rate for the second shift is $12.

 

1.       Start  ezPaycheck, click the left menu “Company Settings”, then click “Wage Setup” sub menu to open Company Wage Setup Screen.

-          Check one Regular wage item, then the “Change Name” button to rename it. You can rename it to “2ND shift” or other name.

-          Save your change.

 

2.       Add/ Edit Employee Setup  screen

 

3.       Enter the hourly Rates for different shifts

 

4.       Add a new check and enter the hours there.

New users can try ezPaycheck 30 days free. No credit card needed and no obligation.

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purchase payroll software now free download payroll accounting software

How to handle the paychecks for truck drivers

by admin 30. January 2013 08:44

EzPaycheck software is designed to simplify paycheck processing for small businesses. The 2013 version supports multiple Non-regular Wages to meet users' special needed. Here is an example:

Questions:
I can't find a payroll that will work for drivers paid by percentage. My Drivers percentage is done by the load and then the job. Some companies I pay higher percent than others but it’s all done by each load.

Answers:
EzPaycheck cannot calculate payment by percent automatically. However, the non-regular Wage item can help user handle it.

1. Start ezPaycheck payroll software, click the left menu "Company Settings->Wage Setup" to open Company Wage Setup screen.

2. Add two new payment type "Pay by Load" and "pay by job". Save the change.

3. When add a new check, enter the Pay by load amount and Pay by job amount, ezPaycheck will calculate the taxes automatically.

New users can try ezPaycheck 30 days free. No credit card needed and no obligation.

small business payroll software

purchase payroll software now free download payroll accounting software 

How to Calculate 2013 Federal Income Tax Manually

by admin 17. January 2013 16:17

EzPaycheck small business software saves employers' time by simplifying payroll tax calculation, paycheck printing and tax reporting. However if you like to calculate the taxes manually, you can find the step by step guide below

 

For example:

 

Karen is the employee of company ABC. She lives in Arizona. Her withholding rate is single/withhold at a single rate.  She has two allowances and no extra withholds.  She gets paid $10 per hour biweekly.  She works 64 hours for each biweekly pay period.


Followings are the steps to calculate the federal tax:
 

1. Gross pay for each paycheck: 
 
For each pay period, the gross pay is $640
 
2. Deduction for each paycheck:
The standard deduction is $3,900 per year (For Year 2013).
She can get total $3900*2=$7800
For each pay period the deduction is: $7800/26=$300

 
3. Taxable income for each paycheck
So for each paycheck, the taxable income is: 640-300=$340.00
 
4. Federal tax 
(340.00-85.00) * 10%=255*10%=$25.5

 

Current Federal Income Withholding Tax table
http://www.halfpricesoft.com/federal_income_tax_2013.asp

 

 

Table 2 -- Biweekly Payroll Period

(a) SINGLE person (including head of household) --

If the amount of wages(after
subtracting withholding
allowances) is:

 

The amount of income tax
to withhold is:

Not over $85.00.......

 

$0

Over --

But no over --

 

 

Of excess over --

$85.00

$428.00

 ...

10%

$85.00

$428.00

$1,479.00

 ...

$34.30 plus 15%

$428.00

$1,479.00

$3,463.00

 ...

$191.95 plus 25%

$1,479.00

$3,463.00

$7,133.00

 ...

$687.95 plus 28%

$3,463.00

$7,133.00

$15,406.00

 ...

$1,715.55 plus 33%

$7,133.00

$15,406.00

$15,469.00

 ...

$4,445.64 plus 35%

$15,406.00

$15,469.00

...

 ...

$4,467.69 plus 39.6%

$15,469.00

EzPaycheck payroll software is designed to automate paycheck processes to reduce the time spent on running payroll. The software’s graphic interface leads users step-by-step through setting up employee information, importing data, calculating payroll—including calculation of federal, state and local taxes; deductions for Medicare, insurance and 401(k) plans; and printing paychecks.

 

Priced at just $89 per installation, ezPaycheck’s graphical interface and functions are so intuitive that even users without much computer or accounting experience can start automating payroll processes within minutes of installation. Additionally, customers can try ezPaycheck payroll software without cost or obligation for 30 days.

 small business payroll software

purchase payroll software now free download payroll accounting software  

Related Links

 

  • Federal Tax tables 
  • State Tax Tables 
  • EzPaycheck Payroll Software For Small Businesses 
  • How to Print and File W2 Forms 
  • How to Print and File 1099 Forms 
  • How to print professional checks in house 
  • How to save on QuickBooks Check Printing 
  • How ezW2 software works with ezPaycheck payroll software

    by admin 8. January 2013 06:15

    EzPaycheck users who need more controls on W2 form printing can try ezW2 software too.

    - ezW2 can print ALL W-2 forms (copy A, B, C, D, 1 and 2) and W-3 forms on plain paper. The black and white substitute forms of W-2 Copy A and W-3 are SSA-approved (Vendor ID: 1335).
    - ezW2 can print W2 recipeint copies in 4-up formats. It can also print 2 red forms on the same sheet.

    - ezW2 can print 1099 misc forms Copy 1, 2, B and C on white paper. IRS does not certify the substitute forms right now. You need to use the red-ink forms for 1099 MISC copy A and 1096.

    - ezW2 also supports PDF and efile features.

    print W2 forms How ezPaycheck works with ezW2 software

    Followings are the steps to use ezPaycheck with ezW2:

    1. start ezW2 software, remove employees and their W2 forms if needed. (optional)

    delete employees w2 forms

    2. start ezW2 software, click top menu "Import From EzPaycheck".

    3. Select ezPaycheck accounts and import W2 forms or 1099 forms.

    If you do not know your current ezPaycheck database file name and path, you can check this article http://www.halfpricesoft.com/payroll-software/switch-current-account.asp

     

    4. Review and Edit W2/1099 forms and print them. Learn more here
    http://www.halfpricesoft.com/w2-software/howto-file-print-w2-forms.asp

    purchase payroll software now

    To learn more about ezW2, 1099 W2 Printing software, please visit

    http://www.halfpricesoft.com/w2_software.asp

    try w2 1099 software purchase w2 1099 software

    IRS Revised 2013 Income Tax Tables. Employers Need to Use New Tax Tables As Soon As Possible

    by admin 7. January 2013 06:39

    After President Barack Obama signed the tax rate changes into law, IRS released the new updated income-tax withholding tables for 2013 on Jan 3. The revised withholding tables show the new rates in effect for 2013 and supersede the tables published on Dec 31, 2012.

     

    For 2013, the employee tax rate for social security increases to 6.2%. The social security wage base limit increases to $113,700. According to IRS, Employers should implement the 2013 revised withholding tables and new Social Security tax rate as soon as possible, but no later than February 15, 2013.

     

    We have updated ezPaycheck 2013 payroll software for this change.

    If you are a new user, you can download ezPaycheck 2013 and try it free for 30 days at

    http://www.halfpricesoft.com/payroll_software_download.asp

     

    If you are ezPaycheck 2012 users, we would like to suggest you to back up your database first then download ezPaycheck 2013 update package at

    http://www.halfpricesoft.com/payroll_software_update_2013.asp

     

    small business payroll software

    purchase payroll software now free download payroll accounting software

     

    How I Paid Only 1% of My Income in Federal Income Tax

    by admin 26. April 2011 02:23

    I would like to recommend this article. It explains why rich people can avoid the taxes without high-priced lawyers under our current tax system.

    How I Paid Only 1% of My Income in Federal Income Tax

    http://www.huffingtonpost.com/eric-schoenberg/how-i-paid-1-of-my-income_b_852948.html

    While the Republicans talk about the "shared sacrifices" necessary to close our government's budget deficit, their plan imposes pain mostly on the sick, the elderly, and the poor. Asking the rich to sacrifice by paying higher tax rates surely pales in comparison. I believe that having wealthy investors pay taxes at the same rate as middle-class workers would be an important step towards making sure that we all contribute to putting our fiscal house in order.

    I agree.

    Tags: , , ,

    Payroll taxes

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