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Handling Tax Calculations

Updated over 3 weeks ago

Atto Payroll automatically calculates federal, state, and local taxes for your employees by using the latest tax laws and jurisdiction-specific rules. This ensures accurate payroll runs and timely tax filings — no manual calculations required.


How Atto Handles Tax Calculations

  • Live Tax Law Updates

    Atto’s system is continuously updated to reflect changes to federal, state, and local tax codes. This helps you stay compliant, even as regulations shift.

  • Jurisdiction-Based Calculations

    Atto identifies the correct tax jurisdiction based on your employees’ work and home addresses, then applies the relevant rates and rules for each location.

  • Taxable Income Assessment

    Atto determines each employee’s taxable income by factoring in gross pay, deductions, benefits, and applicable exemptions.

  • Accurate Tax Withholding

    Using employee-provided data (e.g., W-4 details), Atto calculates and withholds the correct amounts for:

    • Federal income tax

    • State income tax (if applicable)

    • Local income tax (if applicable)

    • Social Security and Medicare (FICA)

    • Other applicable deductions or garnishments


Atto’s automated tax engine ensures your team is paid correctly, and your business remains compliant with tax regulations at every level.


Need more help?

Just message us via in-app chat or reach out to our team — we’ve got you.

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