TallyCheck

US payroll

Federal and state payroll tax. Done to the cent.

Run each pay period in a few clicks. TallyCheck works out every paycheck, posts it to the ledger, records net pay and every tax deposit — and gives you the figures for Form 941, 940 and the W-2s.

US payroll is available in TallyCheck Web today and is coming to Desktop.

Every paycheck explained

A pay stub your staff can follow.

Gross pay, pre-tax deductions, each tax withheld and the employer's share — all shown, all traceable to the employee's Form W-4 and the year's rates.

  • Salaried and hourly employees
  • Overtime at time and a half
  • Bonuses and other earnings
  • 2020+ and older Forms W-4
  • 401(k) and section 125 deductions
  • Exempt employees and extra withholding

Pay stub · Nov 6, 2026

Example employee

Single · every two weeks · Texas

Posted
Regular pay ($52,000 ÷ 26)2,000.00
Gross pay2,000.00
401(k) (pre-tax)− 100.00
Federal income tax− 144.15
Social security 6.2%− 124.00
Medicare 1.45%− 29.00
State income tax (TX)0.00
Net pay$1,602.85

Employer FICA

153.00

FUTA + SUTA

66.00

Total cost

2,219.00

Example figures. State unemployment at an example 2.7% rate.

How a pay period runs

From draft to deposited, in six steps

1

Start the pay run

Pick the pay period and pay date. Every active employee is added with their pay and Form W-4.

2

Adjust the lines

Hours, overtime at time and a half, bonuses, other earnings — every change works the taxes out again.

3

Post

Wages, employer taxes and every payable go to the ledger in one balanced entry.

4

Pay employees

Record net pay from your bank account. Salaries Payable is cleared.

5

Deposit the taxes

Record a Form 941 deposit, FUTA, state unemployment and state income tax as you pay them.

6

Void if needed

Voiding reverses every entry the run made and frees the pay period.

Rates

The federal figures are built in. The state ones are yours.

Federal withholding follows the IRS's 2026 percentage method for payroll systems. Each pay run keeps a copy of the state and unemployment rates it used, so past pay periods never change.

Built in for 2026

Federal income tax
Form W-4 (2020+ and older), IRS 2026 tables
Social security
6.2% + 6.2% up to $184,500
Medicare
1.45% + 1.45%, no limit
Additional Medicare
0.9% over $200,000 (employee)
FUTA
0.6% on the first $7,000

Set by you

State unemployment (SUTA)
Your rate and wage base
State income tax
Your state's rules, per state
No income tax on wages
AK, FL, NV, NH, SD, TN, TX, WA, WY
FUTA credit reduction
When your state has one
Pay frequency
Weekly, every two weeks, twice a month, monthly

Around payroll

Everything a pay period touches

Employee profiles

Work state, salary or hourly rate, the Form W-4 and the state withholding certificate.

Every state

Enter each state's withholding rules once — flat rate or brackets. Posting waits until a state is set up.

Year-to-date limits

Social security, FUTA and state unemployment stop at their yearly wage limits, worked out from earlier pay runs.

In the books

Wages, payroll tax expense and a payable for every tax, posted in one balanced entry.

941, 940 and W-2

The quarterly and yearly figures and each employee's W-2 boxes, from the pay runs you posted.

Only for the right eyes

Payroll is its own permission. Others can't see pay or tax details.

Questions

Payroll questions

How do I know the federal withholding is right?
It follows the IRS's 2026 percentage method for automated payroll systems, and it reproduces all 4,794 amounts in the IRS's 2026 wage bracket tables exactly.
Does TallyCheck file or pay my payroll taxes?
No. It works out what is owed, posts it to your books and records the deposits you make. You file Form 941, 940 and W-2s and pay the IRS and your state yourself or through your e-file service, using the figures TallyCheck prepares.
Which states are covered?
All of them. The states without an income tax on wages are built in; for the others you enter your state's withholding rules from its current employer guide, once, and update them when the state changes them.
What about city and county taxes?
Local income taxes are not included yet.
Can I pay employees by direct deposit?
TallyCheck records net pay from the bank account you choose; the transfer itself is made through your bank.
Is it in the Desktop edition?
US payroll is in TallyCheck Web today and is coming to Desktop.

See your books the way they should be.

Pick the edition that fits. You can move from one to the other later.

TallyCheck Web

For the whole team, from any browser.

Sign up free

TallyCheck Desktop

Offline, on one Windows PC.

Download for Windows