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Author: tyler44 Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121106  
Subject: Re: How do employers calculate withholdings? Date: 3/29/2007 10:04 AM
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ah, thanks AJ.
So, it looks like these withholdings are loosely pegged to the tax rate schedule?

For example, from the semimonthly pay withholding chart:
Over 3,211 but not over 6,783 withhold 630.95 plus 28% over 3,211

From the tax schedule:
Over 77,100 but not over 160,850 tax amount: 15,698.75 plus 28% over 77,100

77,100/24 = 3,212.50
160,850/24 = 6,702.08
15,698.75/24 = 654.11

So what accounts for the small discrepancies?

Also - are there any cases where your employer would calculate withholdings against anything other than your gross pay for that period (minus declared allowances) for example - all retirement plans and benefits are always deducted after withholdings, correct?
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