Hi. Wondering if you can tell me what the calculation is for the “monthly” federal tax? ($194.67 in below example)
If I multiply the fed tax shown below 194.67 Xs 12 months, I get $2,336.04.
The payroll below is for $36,000/yr or $3,000/month. This income would be in the 10% and 12% tax brackets.
Even if I just use 10% (and don’t get into the weeds on the 12%), 10% of $36,000 is $3,600. If I only pull out $2,336 for fed tax on this employee’s paycheck, he will be way short come tax time.
I must be missing something. Please LMK what I might be doing wrong.
Also, assuming I entered the income correctly below?.....even though it says “hourly”?