2018 Federal Withholding

[timboud]

I had a couple of employees tell me their Federal Withholding was wrong. I checked into it and the main one did not have enough wages to even require withholding which was accurate. However, I checked on another employee and she earned $897.00 for a bi-weekly payroll, claiming Single 2 (two). The PayWindow program deducted $44.93 for Federal Withholding. When I checked it against Pub 15 they show it should be $56. I checked my program and it appears I have the latest update. Any ideas?

[Paul Mayer]

You were on the wrong line from Publication 15, you were on the $$980 to $1000 line. The $880 to $900 line shows the tax at $44. That is using the wage brackets from the Publication 15. If you use the Exact Calculation method like we do from the Publication 15, the tax is $44.93.

[Cynthia Crytzer]

I'm in Pennsylvania. I just updated the program tonight before I started a payroll for this week. After completing I noticed that this bimonthly pay period (5/18/18) and the last one 5/4/18 did not have any employee federal tax withheld from employee checks. Is there a reason that would happen?

[Paul Mayer]

I'm in Pennsylvania. I just updated the program tonight before I started a payroll for this week. After completing I noticed that this bimonthly pay period (5/18/18) and the last one 5/4/18 did not have any employee federal tax withheld from employee checks. Is there a reason that would happen?

No idea Cynthia, I would need to see your database to know why. Make a backup and attach it to an email to support@zpay.com. Reference this message thread so I know what to check for.

[Paul Mayer]

I received your database Cynthia. The answer was in this message thread. Circular E (Publication 15) from the IRS is what you want to compare to. A Married Employee on a By-Weekly pay person with two Federal Exemptions, must earn at least $765.00 before paying one dollar in Federal taxes. Your employee on three payrolls earned $730, $612 and $624, thus no Federal withholding.