This is the first question I would be asking in this community... I tried to go through some threads but didn't get the complete answer...
I needed a clarification regarding the calculation of NJ state tax .It would be great if someone could help me out in this.
As per my understanding on NJ State tax rules
Married taxpayers filing jointly, qualifying widow or widower and head of household filers face seven rates of which the first three are here...
-- 1.4 percent on the first $20,000 of taxable income.
-- 1.75 percent on taxable income between $20,001 and $50,000.
-- 2.45 percent on taxable income between $50,001 and $70,000.
Net taxable income is $4050. Married filing jointly with a child.
1. What I could not figure out is the amount of $90.76 in the pay stub and the $46.25 for the NJ SUI/DUI Tax. If I go to paycheckcity.com and verify, the state tax is coming to $72.67 and SUI/SDI for $37.46.
2. I see $311.46 as Federal withholding. How is the $311.46 amount coming as a Federal withholding ? I tried searching the net a lot but all I got was information on how Federal income tax is being calculated which is as below. I couldn't figure out how to get to the 311.46 figure. It would be of great help if the experts here could assist me with these two questions.
2008 Tax Brackets
Tax Rate Single Married Filing Jointly
10% Not over $8,025 Not over $16,050
15% $8,025 - $32,550 $16,050 - $65,100
25% $32,550 - $78,850 $65,100 - $131,450
28% $78,850 - $164,550 $131,450 - $200,300
33% $164,550 - $357,700 $200,300 - $357,700
35% Over $357,700 Over $357,700
