Increased Federal Withholding

[Mike Kelley]

I am a new treasurer at our church. I upgraded to 2011 ZPAY software and the new tax tables. When I ran payroll the new social security withholds worked but everyone has more federal tax withhold. Where did I go wrong?

[Paul Mayer]

Yes don't you find it funny how they touted the reduction in the Employee FICA share but failed to mention something we all forgot about over the last two years? The Obama tax cut is history and the Bush tax rates are back. The Federal taxes are a lot higher now for the low income and middle class again.
:-(

[Mike Kelley]

Thank you for your prompt response. I'm sure the employees were wishing for a different answer.