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Federal tax withholding

  • 1.  Federal tax withholding

    Posted 10 days ago
    I have three employees who have marked the box in step 2 of the W4 for married higher withholding.  One has also entered 6,000 in step 3 for dependents, the other two don't have anything entered in step 3.  However for the one with $6,000 in step 3 and one of the other two, no withholding is being calculated on their paychecks.  Gross amounts are $2,875 and $1,348.50.  For the third employee with a gross of $2,092.20 it is only withholding at a 3% rate.  Payroll is semi monthly. Has anyone else ran into this problem and if so how did you correct it?  They all intended to have maximum taxes withheld.  Thanks!

    Janan Berstler
    Geonetric Inc
    Cedar Rapids IA
    Academy - Online Interactive Learning from Experts

  • 2.  RE: Federal tax withholding

    Posted 9 days ago
    Hi Janan, thanks for the post, the new W4 is so much fun!

    Not sure if you saw this, but here is my blog on the W4 go down to step 3,
    You can see how we calculate it, I feel 6,000 is a bit high, just my opinion, but review the below
    Microsoft Dynamics GP Year-End Update 2019: New 2020 Payroll W-4 how does it work in Microsoft Dynamics GP?

    Here is my blog on how we calculate taxes in GP and annualize everything
    Is Microsoft Dynamics GP calculating Payroll taxes correctly?

    Let me know if you have more questions, thanks

    Terry Heley
    HR/PR expert
    West Fargo ND

    Academy - Online Interactive Learning from Experts

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