Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Has anyone used Paycheck City's paycheck calculator to determine what their net pay should be? How would you rate its accuracy?
The reason I ask is because I had an issue with my first paycheck of the year. I realize there are two primary tax changes for 2011 that affect me. First, is the fact that the Bush tax cuts were extended for another two years. So, generally speaking, my federal withholding shouldn't change, by much anyways. Second, the social security tax dropped by two percent (6.2% to 4.2%) for employees. That being said, I should ultimately be seeing a little more in my paycheck this year than last year.
I have used Paycheck City's paycheck calculator for a couple years now. It has been 100% accurate for me when I have used it. Anyways, I calculated my net pay for 2011, and according to the calculator, I should be seeing about $16 more in my paycheck than last year. That amounts to a net effect of about +$30/month (I get paid bi-weekly). Well, my last check I noticed that I was actually losing $30 compared to what I calculated for 2011's net pay, and about $15 from what I was earning last year. When my employer provided me a break down of the withholdings, I noticed that all withholdings (SSI, Medicare, State) were the same for 2010, but that the new federal withholding for 2011 was applied (which basically went up about $12/paycheck). A $12 increase is no big deal, especially when I take into account the nearly $30 drop in social security contribution. But the SSI drop was not reflected in my check, and that's why I saw about a $30 decrease in my paycheck. That'd ultimately add up to about $60 of lost income for me per month. I don't know about you, but I haven't reached baller status yet, so every dollar counts for me.
Anyways, I brought this issue up with my HR person, and she allegedly contacted the company who handles our payroll. I never got an answer about this issue, per se. My HR rep basically just commented that it was weird and that when she calculated my taxes, it should have come out to what I was expecting. Since the issue hasn't been resolved, I can only wait until my next paycheck this Friday to see if the same mistake is made. My HR rep did comment today in an email that, "well, if they do withhold too much, you'll get it back at tax time". BUT I DON'T WANT TO GIVE THE GOVT FREE MONEY AND HAVE TO WAIT TILL NEXT YEAR TO GET BACK WHAT IS RIGHTFULLY MINE!
What would you guys do in this situation? Should I not let up until something is resolved? It seems pretty obvious to me that the company doing our payroll goofed up last time. And I can't afford their goof ups costing me nearly $60 every month either.
Last edited by Z3N1TH 0N3; 01-19-2011 at 01:24 PM..
If I were you and were concerned with my taxes I would continue to vote Republican and hope to heck that they can take back the Senate and in a few years the White House.
If I were you and were concerned with my taxes I would continue to vote Republican and hope to heck that they can take back the Senate and in a few years the White House.
The issue raised by the OP has to do with the correct withholding rates. This issue would not change with a change in which political party controls Congress, and neither would it change with a raising or a lowering of taxes. There will always be withholding issues.
What would you guys do in this situation? Should I not let up until something is resolved? It seems pretty obvious to me that the company doing our payroll goofed up last time.
You mention you've been speaking with your internal HR person.
Is there an HR manager above this person? If so, I'd approach
them and explain what's going on and can you get an answer.
You mention you've been speaking with your internal HR person.
Is there an HR manager above this person? If so, I'd approach
them and explain what's going on and can you get an answer.
Our HR person is also the president of the company. Above her would be the owner. It's a pretty small company.
This is a shot in the dark and I've done this before. Do it ONLY if you itemize your taxes and have enough to support it. If you want your money now, claim 2 or additional on your deductions in your paperwork with payroll. You'll get more money in your paycheck each week or however you are paid. HOWEVER, you must remember to file ONE person when you do your taxes at the end of the year. This is legal. After all it is your money without interest. The best and optimal option is to owe or get $0. You can make this change anytime.
This is a shot in the dark and I've done this before. Do it ONLY if you itemize your taxes and have enough to support it. If you want your money now, claim 2 or additional on your deductions in your paperwork with payroll. You'll get more money in your paycheck each week or however you are paid. HOWEVER, you must remember to file ONE person when you do your taxes at the end of the year. This is legal. After all it is your money without interest. The best and optimal option is to owe or get $0. You can make this change anytime.
That's an interesting idea. I claim one right now. I may look into that.
This particular issue doesn't involve how I'm claiming. It's just a matter of the payroll company goofing up on my withholding rates. Unfortunately, I have to wait until Friday to find out if this is to become a recurring issue. If so, I may do what you're saying by claiming more than one person. Or, I have the option of working a little OT to make up for the difference, but why should I punish my company for the payroll company's mistake, right?
That's an interesting idea. I claim one right now. I may look into that.
This particular issue doesn't involve how I'm claiming. It's just a matter of the payroll company goofing up on my withholding rates. Unfortunately, I have to wait until Friday to find out if this is to become a recurring issue. If so, I may do what you're saying by claiming more than one person. Or, I have the option of working a little OT to make up for the difference, but why should I punish my company for the payroll company's mistake, right?
I found this out by accident because someone in payroll accidentially put 3 deductions. When I did a quick calculation at the end of the year it said I owed $3000 on my federal taxes, but after itemizing I still got a refund.
The issue raised by the OP has to do with the correct withholding rates. This issue would not change with a change in which political party controls Congress, and neither would it change with a raising or a lowering of taxes. There will always be withholding issues.
Yea and if they are taxing us less they will also withhold less. LOL
Depending on the company who your payroll is outsourced to they may not have put in the change for the new tax rate as of yet.
If that is the case, then no one's taxes would be correct (on your company's payroll).
Some companies are able to make regulatory changes fleetly-- others have to go through a release schedule and change code.
To even FURTHER complicate matters-- not all payroll engines even manage the tax calculation-- it comes from the payroll engine querying out to a tax compliance software that provides the calc back into the payroll engine. THAT company may not have put in the updates as of yet either.
Government legislation happens without regard to how fast or how easy it is to make the changes.
As for paycheck city-- it is for the most part accurate on a general sense (i.e. if you input your YTD values) but paycheck city is not necessarily going to properly tax you down to the street level (which in some localizations tax withholdings can go).
AS for getting the money back sooner than filing time-- your company may request that-- although for the amount of money you are looking at they may not. Usually payroll outsourced companies charge for certain off scheduled payroll runs and in some cases balance adjustments. It just really depends on how it works at your particular company and their payroll provider. If the patch was not put in timely-- it could very well mean that the payroll provider will be doing a mass balance adjustment and refund the amounts in another scheduled paycheck. just uncertain to tell.
I should add-- that things like tax rates in a payroll system are not handled at the employee level-- they are handled at a macro level so your HR person will also be having the same issues as would any other employee who is paid through your provider for your company.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Off topic
