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2020 W4 Step 4

  • 1.  2020 W4 Step 4

    Posted Feb 03, 2020 02:09 PM
    Since we have to use the additional withholding box for both 4b and 4c on the W4 form, is it correct that you enter a per pay period amount for 4c but the total amount for 4b (from line 5 on deductions worksheet)?

    We have an employee who entered a very large amount on 4b, seems incorrect unless it was divided by # of payrolls.

    Thanks!
    #W4 ​​​#2020W4​ #GP2016 ​

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    Jolene Wilke
    Accounting Manager
    Big Stone Therapies, Inc.
    Big Stone City SD
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    Academy - Online Interactive Learning from Experts


  • 2.  RE: 2020 W4 Step 4

    GPUG ALL STAR
    Posted Feb 04, 2020 09:19 AM
    Hi Jolene,

    Yes, you may need to verify with the employee what they are putting in as they may just not understand the form and fields, but the field in payroll the additional amount is a per pay period field.  So it calculates the tax, then takes this amount in additional to the calculated tax.

    Thanks
    Terry
    Microsoft

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    Terry Heley
    HR/PR expert
    Microsoft
    West Fargo ND
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    Academy - Online Interactive Learning from Experts


  • 3.  RE: 2020 W4 Step 4

    Posted Feb 04, 2020 10:03 AM
    Thanks for your response Terry.  As for the deductions on line 4b, should that be entered as amount per pay period as well?  The form does not say this.

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    Jolene Wilke
    Accounting Manager
    Big Stone Therapies, Inc.
    Big Stone City SD
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    Academy - Online Interactive Learning from Experts


  • 4.  RE: 2020 W4 Step 4

    GPUG ALL STAR
    Posted Feb 04, 2020 10:28 AM
    I think on the actual W4 form, the deduction worksheet they refer you to on page 3 is an annual amount.
    But the field you are using in GP (additional withholding)  is a pay period amount, so you will need to convert it.
    Thanks
    Terry

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    Terry Heley
    HR/PR expert
    Microsoft
    West Fargo ND
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    Academy - Online Interactive Learning from Experts


  • 5.  RE: 2020 W4 Step 4

    GOLD CONTRIBUTOR
    Posted Feb 04, 2020 10:41 AM
    I've been telling customers that they should inform employees that what we are looking for in Step 4 of the W4 is a total amount of additional withholding per pay period. We only have the one field "Additional Withholding" in GP, so for Step 4A/4B/4C, it should all be converted and have the employee tell you exactly what they want for additional withholding.

    Jolene, I'm not sure if you've seen Terry's blog, but it is really helpful.  It's not approriate to have employees read the blog, but you might give them the links to the IRS tax estimator and FAQ.    https://community.dynamics.com/gp/b/dynamicsgp/posts/new-2020-payroll-w-4-how-does-it-work-in-microsoft-dynamics-gp

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    Sherlene Sorenson
    Sr Implementation Consultant
    Columbus Global
    West Fargo ND
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    Academy - Online Interactive Learning from Experts


  • 6.  RE: 2020 W4 Step 4

    Posted Feb 04, 2020 10:59 AM
    This helps a lot.  And yes I have read Terry's blog and it's been very helpful, I was just struggling with step 4b.  Thanks Ladies!

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    Jolene Wilke
    Accounting Manager
    Big Stone Therapies, Inc.
    Big Stone City SD
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    Academy - Online Interactive Learning from Experts


  • 7.  RE: 2020 W4 Step 4

    Posted Sep 17, 2020 07:33 PM
    We are still struggling with employees who enter amounts in box 4(b).  Our employees are hourly with gross pay that changes from payperiod to payperiod.  It is not applicable to put in a negative amount in the Additional Withholding box of the Dynamics Federal Tax window, since each payperiod the amount to be entered into this box would change.  Currently we are having to pull aside each employee who has a 2020 W-4 with amounts in box 4(b) and manually calculate the amount of tax to be withheld, then make a manual adjustment before completing the check run.  This is very cumbersome.  Since the IRS requires us to reduce the employees withheld tax based on the amount entered in box 4(b), it would be really nice if MS would build this feature into their Dynamics software.  We use a good payroll / accounting software so we do not have to make manual calculations.  Terry, do you know if Dynamics is going to be making this a part of the software anytime soon?  I realize that Dynamic was waiting to see if the new 2020 W4 format "stuck" but as the IRS's draft of the 2021 W-4 that was released did still have this same format, it looks like it is here to stay at least for another year.  As such I would truly hope that MS has plans to update the input field for employees federal taxes in Dynamics.  In the meantime any help you could provide on how to enter an employees tax in Dynamics when they have entered amounts in 4(b) of the 2020 W4, and have every changing payroll amounts, would be greatly appreciated.

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    Julie Slesarik
    Virtual Resource Services Inc
    Peoria AZ
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    Academy - Online Interactive Learning from Experts


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