Calculating Federal Withholding Hello all! First-time poster here...
My calculation of federal withholding does not match my employer's and I am trying to understand why.
My W-4 specifies M/5 +$10.67. I have $8.65 in taxable fringe benefits (long-term disability and group term life). Payroll is bi-weekly.
My calculation is as follows, using values from IRS Publication 15 for 2015:
$396.70 + 0.25 * (N - $3212) + $10.67
Here, N is:
gross pay +
taxable fringe benefits -
pre-tax deductions -
5 * Value of One Withholding Allowance
My employer's federal withholding calculation is $8.66 higher than mine. Note that this is only $0.01 off from the amount of my taxable fringe benefits. I don't know if this is coincidence or not.
Is anybody able to see what I am doing wrong?
Thanks to all! |