Hi! I need to calculate all payroll taxes for a potential employee in Durham, NC. The person will work 15 hrs a week @$14 hr. It is on a bi-weekly basis.

Surely you have a payroll tax scale to go by ? There are software packages your company can purchase to do this easily. Or is this a homework question?

Tick

Everything you need to know is in this form:

Publication 15, Circular E, Employer's Tax Guide (http://www.irs.gov/pub/irs-pdf/p15.pdf)

Basically, you take the total wages, the number of withholdings, and look up what you have to withhold in the form (they also have formulas if you wish to write a program to calculate it). You have to match the FICA deduction. You then deposit it in a federal depository using your Federal ID number (or social security number) as your identifier. At the end of the year, you get some W-2 forms, file them with the IRS and send a copy to the employee.

The circular e works for Federal Taxes, but you will need to get the state taxes from the NC state tax website as you also must withhold state withholding. The employee has to fill out form NC-4 as well as the federal W-4.

Here is your amount for a single person working 15 hours at week and claiming o deductions:

Gross pay is 420.00
Fica is (26.04)
Medicare ( 6.09)
Federal wtx ( 34.00)
NC State wtx ( 18.28)
-------------------------------
Net Pay 335.59

If 1 exemption or more are claimed the Fica/medicare is the same but the federal and state will be less.

Use the circular e for federal and the state can be found at:
Withholding Tax Forms and Publications (http://www.dornc.com/downloads/wh_forms.html#nc30) click on NC30 for the tax tables for NC and go to the biweekly. Subtract the deduction first.

Shirley

To calculate "what if's" or states that you don't have the withholding book for... try using paycheckcity.com. It's very easy to use and FREE. You only have to register.