2025 FWH tax table question
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cornerstonechurch105
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2025 FWH tax table question
When I entered the tax tables for 2025, the withholding amounts went WAY up rather than down just bit. For example, one employee grosses approx. 3200.00 per month. His FWH (single) went from $306.00 per month to $357.71 per month. That means his paycheck will be $51.71 less per month. Every year before that, his paycheck went up a dollar or two per month after entering in the new tax tables. Is anyone else having this same issue?
Re: 2025 FWH tax table question
I use a third-party site (paycheck city) to verify withholdings whenever I update the tax tables.
Second, you could use publication 15-T to calculation the federal withholding by hand to also verify.
$3,200 per month gross is ~$38,400 per year gross income.
Assuming this person submitted a W4 ver 2020 or newer and did not check box2 in the W4, I come up with the following calculation:
using worksheet 1A from publication 15-T, you get an adjusted annual wage of $29,800 ($38,400 - $8,600).
Using the percentage method for automated payroll systems chart (page 11 of pub 15-T), you get annual withholding of $1,192.50 + 12% of amount over $18,325 (so 0.12 * $11,475 [which is $29,800 - $18,325]).
That equals a total annual withholding estimate of $2,569.50 for the year. Divided by 12 I get $214.13 withholding.
Using paycheck city online calculator, I get the same answer.
You may need to check the pay item of federal withholding to see if you have any other values entered that increase the withholding, or if you are missing the standard deduction checkbox, or have the proper tax table assigned to that pay item for the employee.
for example, if you forget the subtraction of $8,600 in the tax tables / standard deduction checkbox method, then the same withholding calculation increases to $300.13 per month.
https://www.powerchurch.com/support/514 ... ithholding
I fully understand the confusion, which is why I partially do a simple payroll estimate by hand, and use paycheck city to double check what PC+ is telling me, so I can be sure I've entered the new tax table properly. If all three values match, I know I've done it right.
Second, you could use publication 15-T to calculation the federal withholding by hand to also verify.
$3,200 per month gross is ~$38,400 per year gross income.
Assuming this person submitted a W4 ver 2020 or newer and did not check box2 in the W4, I come up with the following calculation:
using worksheet 1A from publication 15-T, you get an adjusted annual wage of $29,800 ($38,400 - $8,600).
Using the percentage method for automated payroll systems chart (page 11 of pub 15-T), you get annual withholding of $1,192.50 + 12% of amount over $18,325 (so 0.12 * $11,475 [which is $29,800 - $18,325]).
That equals a total annual withholding estimate of $2,569.50 for the year. Divided by 12 I get $214.13 withholding.
Using paycheck city online calculator, I get the same answer.
You may need to check the pay item of federal withholding to see if you have any other values entered that increase the withholding, or if you are missing the standard deduction checkbox, or have the proper tax table assigned to that pay item for the employee.
for example, if you forget the subtraction of $8,600 in the tax tables / standard deduction checkbox method, then the same withholding calculation increases to $300.13 per month.
https://www.powerchurch.com/support/514 ... ithholding
I fully understand the confusion, which is why I partially do a simple payroll estimate by hand, and use paycheck city to double check what PC+ is telling me, so I can be sure I've entered the new tax table properly. If all three values match, I know I've done it right.