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group805
Level 1

I noticed that an employees ftw is $10.00 more than it should be The gross is 224.00 the first 73.00 is 0.00 the remaining is 151.00 at 10%= 15.09.

QBO has the FTW at $25.09
1 Comment 1
Alessandra_B
QuickBooks Team

I noticed that an employees ftw is $10.00 more than it should be The gross is 224.00 the first 73.00 is 0.00 the remaining is 151.00 at 10%= 15.09.

Thank you for visiting the Community, @group805.

 

Let me discuss how the Federal Withholding Tax (FTW) is calculated and help you review your employee's pay and tax details.

 

FTW calculation is based on the percentage method found on IRS' Publication 15. Also, there are multiple things to consider in the calculation. These are:

  • Number of Allowances
  • Marital Status
  • Pay Frequency
  • Gross Pay

You can pull up your Payroll Details Report and match it with the employee's payroll settings.

Here's how to pull up the  Payroll Details Report:

  1. On the left panel, click on Reports.
  2. Look for Payroll Details on the search bar.
  3. Choose the Date Range and Employee. Click on Run report.

You may as well check Publication 15 Circular E (page 45) to learn more how the employee's withholding taxes are calculated.

 

Feel free to leave a comment below if you have other concerns.

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