EzPaycheck 2015 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
Example 1:
Kevin is single with zero allowance. He is paid $240 per week.
1. His gross pay for each paycheck is $240
2. His standard deduction for each paycheck is $0
3. His taxable income for each paycheck is $240
4. Federal Tax
17.8 + (240-222)*15%=17.8+18*15%=17.8+2.7=$20.5
Current Federal Income Withholding Tax table
http://www.halfpricesoft.com/federal_income_tax_2015.asp
Table 1 -- Weekly 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 $44.00.......
|
|
$0
|
|
Over --
|
But no over --
|
|
|
Of excess over --
|
|
$44.00
|
$222.00
|
...
|
10%
|
$44.00
|
|
$222.00
|
$764.00
|
...
|
$17.80 plus 15%
|
$222.00
|
|
$764.00
|
$1,789.00
|
...
|
$99.10 plus 25%
|
$764.00
|
|
$1,789.00
|
$3,685.00
|
...
|
$355.35 plus 28%
|
$1,789.00
|
|
$3,685.00
|
$7,958.00
|
...
|
$886.23 plus 33%
|
$3,685.00
|
|
$7,958.00
|
$7,990.00
|
...
|
$2,296.32 plus 35%
|
$7,958.00
|
|
$7,990.00
|
...
|
...
|
$2,307.52 plus 39.6%
|
$7,990.00
|
Example 2:
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 $4,000 per year (For Year 2015).
She can get total $4000*2=$8000
For each pay period the deduction is: $8000/26=$307.69
3. Taxable income for each paycheck
So for each paycheck, the taxable income is: 640-307.69=$332.31
4. Federal tax
(332.31-88.00) * 10%=244.31*10%=$24.43
Current Federal Income Withholding Tax table
http://www.halfpricesoft.com/federal_income_tax_2015.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 $88.00.......
|
|
$0
|
|
Over --
|
But no over --
|
|
|
Of excess over --
|
|
$88.00
|
$443.00
|
...
|
10%
|
$88.00
|
|
$443.00
|
$1,529.00
|
...
|
$35.50 plus 15%
|
$443.00
|
|
$1,529.00
|
$3,579.00
|
...
|
$198.40 plus 25%
|
$1,529.00
|
|
$3,579.00
|
$7,369.00
|
...
|
$710.90 plus 28%
|
$3,579.00
|
|
$7,369.00
|
$15,915.00
|
...
|
$1,772.10 plus 33%
|
$7,369.00
|
|
$15,915.00
|
$15,981.00
|
...
|
$4,592.28 plus 35%
|
$15,915.00
|
|
$15,981.00
|
...
|
...
|
$4,615.38 plus 39.6%
|
$15,981.00
|
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.
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