PA State

[huselton1]

I can't figure out why Zpay is calculating the PA State tax 4 cents higher for the second half of January. We pay bi-weekly. The total weekly payroll is biweekly payroll is 8643.00.(2881.00 gross payroll per week x 3 weeks) Multiply that by 0.0307 and you get 265.34. When I add the with holding for employees I get 88.46 withheld for each week. Multiply that by 3 and it is 265.38 which is 4 cents off from just doing the math, 8643.00 x 0.0307 = 265.34. Not sure why this is happening. Any help? Thanks in advance.

[Paul Mayer]

Using small fractions you get different values with the two different methods. You have to understand that when an individuals taxes are withheld, that value is stored and when reported the tax withheld for each employee is added up to get the total. But you can get a different value if you were to take the total of their wages and multiply it by the tax rate.

This FAQ was set to explain how that difference is obtained. It was written for FICA and Medicare but the principle is the same:

http://zpay.com/vbulletin/showthread.php?3198-Rounding-of-Employee-FICA-and-Medicare-is-Expected