I have decided to check/calculate my salary in a spreadsheet. All the numbers align correctly, except the federal
I have tried to use the Schedule 15, and Schedule 15A (Tax year 2013) to calculate the
Withholding Tax. For the
Schedule 15 I used the
Percentage Method Tables for Income Tax Withholding (Page 45), and for
Schedule 15A I used the
Wage Bracket Percentage Method Tables for Computing Income Tax Withholding From Gross Wages (Page 34), and
Formula Tables for Percentage
Method Withholding (for Automated Payroll Systems) (Page 25). Each one of these calculations, gave me a result that is within several cents from the actual
Withholding Tax showing on my salary's breakdown/pay-stub.
When I asked my Payroll office, they said its due to "Rounding Error". Can this be true? Can someone explain this to me?
Can it be due to something else? Any ideas? solutions? answers? theories?
The calculations for MA Tax, Social Security, and Medicare deductions are all accurate per the published ways to calculate:
- Social Security:
2(12.4% divided between me and employer)
2(2.9% divided between me and employer)
- MA State Tax: If combined Social Security and Medicare is under $2000, then they are deducted from the
Taxable Wages, once its over $2000, they are not sheltered anymore, and its 5.25%.