Help, help, help!!!
I am trying to put together a payroll program in Microsoft Access. I have come upon a problem that absolutely evades me. In calculating the Tier1 Railroad Retirement Tax (.062), there comes a point that tax is no longer withheld. That maximum withholding amount is $5,840.40. I have been able to stop the calculations after the maximum, but the problem is the amount between the last pay period and the time the maximum is achieved. For example:
YTD Previous Period Tier 1 = $5,750.00 Gross pay this period = $2,350.00 (2,350.00 X .062 = 145.70) $5,750.00 + 145.70 = $5,895.70 ($55.30 over the maximum)
By this calculation, too much tax is withheld this pay period. The maximum to be withheld this period can only be $90.40
What is the calculation that would take this “in-between” into account?