Hi spayne2014,

We've done extensive testing on the latest tax tables to ensure accuracy. The numbers you are seeing appear to be correct - You can go to https://www.irs.gov/businesses/small-businesses-self-employed/income-tax-withholding-assistant-for-employers for a quick calculation from the IRS website. Here is what I got when I tested your numbers:

What many people may not realize is that the amount entered for dependents is a tax credit, meaning it reduces the tax withholding amount directly, it's not a wage deduction. This allows employees to take the tax credits they normally get when they file their taxes and use them on their paychecks instead.

So in this case, a tax credit of 2000.00 over 52 weeks means a reduction in tax of 38.41 per week. You can see that if you remove the dependent credit the tax calculates 39.00:

Hopefully that helps the new tax tables make more sense.

Thanks!

Hi spayne2014,

We've done extensive testing on the latest tax tables to ensure accuracy. The numbers you are seeing appear to be correct - You can go to https://www.irs.gov/businesses/small-businesses-self-employed/income-tax-withholding-assistant-for-employers for a quick calculation from the IRS website. Here is what I got when I tested your numbers:

What many people may not realize is that the amount entered for dependents is a tax credit, meaning it reduces the tax withholding amount directly, it's not a wage deduction. This allows employees to take the tax credits they normally get when they file their taxes and use them on their paychecks instead.

So in this case, a tax credit of 2000.00 over 52 weeks means a reduction in tax of 38.41 per week. You can see that if you remove the dependent credit the tax calculates 39.00:

Hopefully that helps the new tax tables make more sense.

Thanks!

Thanks.