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Financial Planning / Tax Strategies
|Subject: Re: Federal tax withholding rates||Date: 1/19/2013 11:23 AM|
|Author: mazske||Number: 117412 of 125203|
I called the payroll department and asked them about this. My federal tax withholding went up about $45. My FICA tax went up about $35. I was expecting FICA to go up, not Fed tax.
She told me the IRS released new tax withholding tables and that they increased withholding rates at all levels.
If I can find a link she sent me, I'll post it. That link was to something on the IRS site.
Here is the link she sent out.
Page 3 shows the rates. Here's my questions after looking at this.
If the amount of wages (after
subtracting withholding allowances)
That's from the IRS page under the married section.
It appears my federal tax witholding came based on my gross pay.
Now, out of my gross pay, state, federal, FICA, Medicare, deferred comp, retirement deduction and flex spending deduction are all taken out.
My net pay is roughly $600 less than my gross pay.
Shouldn't my tax withholding rate be calculated on my net pay after most or all of these deductions?
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