I have Custom Pay Periods. Why do taxes vary from one pay period to another?
- 02 Dec 2023
- 1 Minute to read
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I have Custom Pay Periods. Why do taxes vary from one pay period to another?
- Updated on 02 Dec 2023
- 1 Minute to read
- Print
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The amount to withhold is based on the number of days in the pay period. Since the number of days in each Custom Pay Period may vary, it would be normal for taxes to fluctuate somewhat even when the taxable gross pay is the same.
Custom Pay Periods: Tax Example
| Pay Period | Days | Periods per Year | Annual Earnings | Tax this Check |
|---|---|---|---|---|
| Jan 1 – Jan 15 | 15 | 365 ÷ 15 = 24 | 24 x Taxable Gross this Check | Annual Tax ÷ 24 |
| Jan 16 – Jan 31 | 16 | 365 ÷ 16 = 23 | 23 x Taxable Gross this Check | Annual Tax ÷ 23 |
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