incorrect fed and state withholding

[karabens]

Can you shed some light on why the fed and state withholdings are significantly higher than they should be and the remaining deductions are correct?

[Paul Mayer]

The taxes should be exact to the penny if you've set up your employees correctly. See this FAQ:

http://zpay.com/vbulletin/showthread.php?119-The-Taxes-from-PayWindow-are-different-from-Publication-15

As you can see, we use the exact calculation method and not the general wage bracketing method where you manually used the many pages of tables to look up a general tax to use and then let your employees settle up at the end of the year.