Changed from weekly payroll to biweekly and noticed differences

[Joe Bockheim]

Less tax in federal and state were withheld.

[Paul Mayer]

Of course a person paid as an example $500 a week compared to being paid $500 every two weeks will pay more tax. That's how taxes are calculated.

It's even the first thing I ask people when they say that not enough taxes are being taken out. I ask how often they pay and then ask what the setting is in the employee settings. If it is a weekly payroll and they employee is set to monthly, it is way lower than it should be.

[Joe Bockheim]

We switched hourly employees from 52 week period to 26 week period in their employee settings. Now employees say getting a biweekly gross of $200 instead of $100 each week; are having less tax withheld.

[Paul Mayer]

I just did a test, Employee Single and zero Exemptions.

Weekly $100.00 and the FIT is $5.67

Bi-Weekly $200.00 and the FIT is $11.35

You can take the Federal Publication 15 and use the "Exact Calculation Method" and work it out on a calculator to compare with PayWindow and we come out to the exact penny.

And with the thousands of CPA's and Accountants using PayWindow, we'd know there was a problem if there ever was. :-)