Calculating Federal Income Tax

I started a new job and am trying to understand my paycheck. I understand the state, medicare, and social security deductions, but am confused about the federal deductions. Below is what my bi-weekly paycheck states.

``````Total Earnings - 3,846.40
Fed Taxable Gross - 3,846.40
OASDI Gross - ...
MEDI Gross - ...

Federal Withholding - 785.73
Fed MED/EE - ...
Fed OASDI/EE - ...
State - ...
``````

Shouldn't my federal be the following?

``````18481.25 + (0.28*((3,846.40*26)-90750)) = 21073.042 ==> /26 ==> 810.50
``````

What are the possibilities for why they are not taking the full amount?

Assuming Single and zero withholding allowances

• Fed Taxable Gross: 3846.40
• value of one withholding allowance: \$153.80 x 0
• sub total: 3846.40

``````Over— But not over—                      of excess over—
\$3,579 —\$7,369..       \$710.90 plus 28%    —\$3,579
``````

so:

``````    710.90
+74.87 = (3846.40 - 3579) * 0.28
equals 785.77
``````

Only off by a few pennies.

Since almost everybody takes the standard deduction (or itemizes to get an even bigger deduction) and takes a personal exemption those are built into the tax tables used by your employer. That is why it gets more complex to get the withholding right if a person has two jobs or one spouse makes a lot more than the other.

• Thanks for the reference. I wish there was an easy way to make it exact. Oh well. Commented Oct 1, 2015 at 16:27