Many small businesses have software--or even outside companies--that handle employee payroll. Businesses with very few employees, however, may find that they can still manage payroll by hand. Vinny Federal Withholding Tax is a basic program that calculates appropriate payroll withholdings based on gross pay, pay period, and dependents. This is by no means a full-featured payroll solution, but for a quick withholding calculator, it works fine.
The program's interface is plain and pretty self-explanatory. Users enter the gross salary and any additional income or withholdings, select the length of the pay period and the employee's marital status, and enter the number of dependents. The application then calculates the withholdings for federal income tax, Social Security, and Medicare. Vinny Federal Withholding Tax is definitely designed for very basic payroll situations; if employee bonuses are taxed at a different rate than salaries are, for example, there's really no way to handle it with this program. Nor did we love the fact that there's only one space to enter "Other/Misc" income or withholdings; pretax insurance, retirement, or HSA deductions must all be lumped in together, a design that may increase the chances for errors. The program has a basic Help file that explains its use, but it assumes that the user already has an understanding of how payroll deductions work. Overall, we think that Vinny Federal Withholding Tax is a great choice for very small businesses with basic payroll needs, but that it may be insufficient for many users.
Vinny Federal Withholding Tax comes as a ZIP file. It installs and uninstalls without issues. We recommend this program to select users.
Editors' note: This is a review of the full version of Vinny Federal Withholding Tax 2010 10.0. The trial version is limited to 14 days.