Federal Income Taxes (2020 W4)

General support regarding TimeTrex, such as
configuring policies/taxes or processing payroll.
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alockey
Posts: 2
Joined: Tue Mar 14, 2023 5:47 am

Federal Income Taxes (2020 W4)

Post by alockey »

Hello all!
I'm assuming that I am simply missing an obvious step, but I'm attempting to run my first payroll for our single employee. I realized that the Federal Income Tax was set for the 2019 W4, so I went into the Payroll -> Taxes and changed it to the 2020 Version but now it no longer calculates the Taxes on the employee stub, it is just removed from the deductions all together.

If I set it back to 2019 and earlier, it works again and calculates, and appears in the deductions.

I've re-checked both the Payroll -> Tax setting, and the Employee -> Tax setting, and they both say 2020, non-exempt, and all have 0's for the additional withholding values. The only thing that I have adjusted is the 'Form Version' drop down.
I have also checked by using an 'additional' withholding value of $1.00, and that does come out of the employee's payroll, so somewhere the auto-calculation isn't working but I'm not sure why. I am still 'in' the current pay period (ends 03/14 at midnight), but that didn't seem to affect the 2019 version.
Sorry if this is a duplicate question, I did not see this particular issue in the forums.
Thank you for your assistance!
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mikeb
Posts: 709
Joined: Thu Jul 27, 2006 11:58 am

Re: Federal Income Taxes (2020 W4)

Post by mikeb »

Each form version uses different tax formulas, so what is the employees martial status and taxable earnings on the pay stub you are generating? If its a relatively low amount its possible they haven't met the threshold for having taxes taken off with the 2020 version W4.
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alockey
Posts: 2
Joined: Tue Mar 14, 2023 5:47 am

Re: Federal Income Taxes (2020 W4)

Post by alockey »

Its for a part-time employee, they're Single and the taxable wages are around 380, which does appear to be below a threshold. Is there a way to have this deduction show as $0.00, not like it's just forgotten and missing?
Thank you for the reply mikeb!
mikeb
Posts: 709
Joined: Thu Jul 27, 2006 11:58 am

Re: Federal Income Taxes (2020 W4)

Post by mikeb »

Once they have taxes deducted at least once in the year it will show as $0. Until then though, it doesn't appear at all.
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