No federal withholding

SOLVED

I've had 2 separate clients now on PR 2.x find out during W2 processing that one or more employees had no withholding in all 2020.  I just logged into one client with an employee marked as MJ1 who grosses about 23K per year, paid weekly.  That should be around $20/check in Fed WH.  NOTHING is being withheld.  I flipped the Supplemental off and on, no changes.  Has anyone else had a client report this?  In all cases, it is the new W4 choice, not the old 2019 or older withholding selection.

  • 0
    verified answer

    Look at the IRS guidance.  They have a spreadsheet called income tax withholding Assistant for employers.  It is important information.  Note it is important that the employee fill it out correctly.  If they put married and don't fill in the spouse income it will under withhold.

    I have some employees that have no withholding

  • 0 in reply to Bvulliamy

    Sorry, I meant to get back to you - I changed to MJ2 and it withheld, so client is playing with it.  I still think it should have withheld a little, but after seriously rereading the instructions, I do get the MJ1 vs MJ2 and think the MJ2 is the better option for this employee.  Unfortunately, the employees don't really know what the implications of half-heartedly filling out the new W4 is, either.

  • 0

    I have a client with this scenario as well.  Zero withheld through out the year.  Looking at the tax tables, their withholdings calculated at the lower end of withholding so I concluded that the tables were working as designed.  Interesting that employees don't notice the issue when it occurred for better better part of the year.  I suggested that they add $x's as additional withholding.

  • 0 in reply to Bvulliamy
    SUGGESTED

    Sage Support uses PaycheckCity.com to verify tax calculation in Sage 100.  Employees that need help with the W-4 should look at the IRS guidance on the topic, as adequate withholding is the responsibility of the employee.