This demo is of a small CGI program that is used by small businesses to calculate tax withholdings for their employees. Currently it is setup for a small company with 1-10 employees and takes as input their gross pay for the pay period. Federal tax withholding is determined using the Percentage method based on the gross pay entered (for a detailed explanation please reference publication 15 from the IRS.) FICA is broken down into Social Security and Medicare withholdings. State taxes are different for each state and will be added on an “as needed” basis. Currently, the only state taxes calculated by the program are for the state of Arizona.
The demo company is named “Sample Company” and pays it’s 5 employees on a weekly pay schedule. The 5 (fictitious) employees are:
John Doe – Married with 5 dependents/allowances claimed
Jane Doe – Married with 0 dependents/allowances claimed
Joe Blow – Single with 13 dependents/allowances claimed
Joan Doe – Single with 0 dependents/allowances claimed
Pat Smith – Married with 3 dependents/allowances claimed
State taxes in Arizona are withheld at a rate chosen by the employee using Arizona state form A4. Each of the above listed employees has elected to have their state taxes withheld at a different rate. NOTE: if there is no A4 on file for a given employee, the employer is to select a ‘default’ rate of 2.7% for that employee.
To login to the tax calculator program provide the following credentials (all in lowercase) when prompted: