How do you calculate paycheck state tax withholding?

May 5th, 2010

Let’s say the net pay on the paycheck is 5.15 before tax deductions. The employee is married and does not have any exemptions as well as claim 0 allowences on the W4
I used the online calculator but it does not tell how the calculations were performed. I would really appreciate your help!

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  1. xtraheavy01 - May 5th, 2010 at 10:38 am

    Kay08,

    TheFica is Gross wages times 6.2 percent (There is a wage base maximum, and then they stop withholding Fica)
    The Medicare is Gross wages times 1.45 percent
    The Federal, they use tax charts. get a hold of Publication Circular E. on the irs website (www.irs.gov)
    They use tax tables
    Same with the State. they use tax tables

    Hope this helps

  2. Judy - May 5th, 2010 at 10:38 am

    Depends on the state. States don’t all have the same rates, so the calculations are different. And some states have a flat rate, and some have no income tax at all.

  3. Worldly25 - May 5th, 2010 at 10:38 am

    It varies by state. NYS takes 9% of your gross income in taxes
    So that would be 60.75 in state tax on salary of 675.

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