Why am I getting $0 as federal and state tax?
1.6k views | Last modified 8/13/2020 12:21:31 AM EST

The chances of you getting $0 as federal and state taxes may depend on the following reasons:

  • Taxes are applicable only when earnings crosses a particular threshold
  • More dependents may have been claimed for a low salaried employee

Here's an example: 

John Doe is an employee working in California who has been paid monthly and whose filing status is single. There are no allowances claimed on his Form W-4

Consider the gross pay for the monthly pay period is $1,000. Then, the tax calculation follows:

Gross Pay 1000.00
Federal tax 0.00
FICA taxes 62.00
Medicare 14.50
State tax 0.00
SDI 10.00
Net Pay 913.50


As you can see since the earnings are low for this employee, federal and state taxes are not applicable. Earnings exceeding a certain threshold will only subject to taxes.

Was this helpful? Yes No

Create Pay Stub using our
Paystub Maker

Create Paystub Now

Returning User? Sign in

Couldn't find what you
are looking for?

Contact Us

[email protected]