Example 1: 123 Inc - Payroll University
Here is how the employer would calculate the gross payment to Ryan and the amounts that must be withheld, assuming Ryan will not reach the social security wage limit with the bonus payment and that the state supplemental wage withholding rate is 6%: Step 1 Add up all tax % using Supplemental rates. 25% FIT + 6% SIT + 6.2% SS + 1.45% Med. ................
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