How is the Federal Income Tax calculated for biweekly payrolls with a pay ... »

29) How is the Federal Income Tax calculated for biweekly payrolls with a pay period of other than 10 working days?

The federal income tax table is established for monthly and biweekly payroll periods. Whenever a payroll is processed for a different period, the FIT tax calculation is adjusted to make an appropriate tax withholding based on the payroll period being processed. This is accomplished by adjusting all of the numeric values on the FIT table except the percentage. The values are adjusted by multiplying them by the ration or the actual numbers of days in the pay period divided by 10. The values adjusted are:

Exemption or deduction value
Minimum salary range value
Maximum salary range value
Amount to be subtracted

On a seven (7) day pay period, the values above would be multiplied by .7. The calculation then takes place using the adjusted values.

This page was last updated on 06/11/2010 17:15:57