Payroll Tax question

From: Jamester <jamester@alumni.EECS.Berkeley.EDU>
Subject: Payroll Tax question
Date: Thu, 7 May 1998 10:02:01 -0700 (PDT)

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Persfinners:

I changed job about a couple of weeks ago and have just received my unused
vacation check from the old company. I looked at it and compared it with the
old regular paycheck. What I found was they actually took straight 28% out of
my vacation check for fed and 6% for State (Calif). While on the regular check
they used Method B of payroll deduction (from IRS Publication 15) which
came out to be less taxes. They did take out Social Sec, Medicare, CA SDI and
the percentages are correct. The fed & state figures are questionable.

As an example, a check for $900 shouldn't really have $250 taken out for
Federal tax, while a check for $1000 (arbitrary regular paycheck amt) only
have about $160 taken out, should it?? Am I getting ripped off here? Is it
normal for companies to use diferent formula to deduct taxes out of a vacation
check? Is it supposed to be 28%?

Thanks in advance for the response..
James


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