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Somarservices
09-20-2016, 01:37 AM
I've been using payroll window for two years, but never really checked if the deduction were been correctly calculated.
One of our employee brought to my attention that his state withholding have not been correctly calculated.
I checked and bum! He is right. I tried at least 3 other softwares doing the same example of paycheck and the deduction were the same on all three of them but more than doubled on paywindow.
Before you ask, here are the scenario:
Single (Head of Household)
4 exemptions on both fed and state
30 hours @ $10.00 hour.

Totals should be:
Gross $300.00
Fed With $0.00
Social $18.60
Medicare $ 4.35
State With $ 4.54 (Paywindow is calculating this as $10.00)

Please help me. I have to fix this. By the way, looks like this problem is only with people who are claiming "Head of Household" status.

Paul Mayer
09-20-2016, 05:19 PM
After an email exchange with you I found you are in Massachusetts. We have a special note for that state in the READ THIS FIRST file that displays when installing PayWindow or the Tax Tables.

The instructions are:

“MA - To handle employees that claim zero exemptions. In the employee set up the employee as a Head of Household to not use the personal exemption amount. Married or Single should be used for employees that claim one or more exemptions.”

Only employees with zero exemptions should be set as Head of Household. Change that employee to Single or Married and it will be as expected by reducing the gross wages to taxable waged by deducting the personal exemption.