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Thread: Was there a reduction in Federal withholding rates for March?

  1. #11
    Join Date
    Aug 2002
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    Quote Originally Posted by BenH View Post
    Hi Paul, I'm new to this. Could you please post the 15-T with the basis for the 3/13/21 withholding update? I cannot find it on the IRS website. All I see is a 15-T that supports the pre 3/13 withholding rates. Thank you for your help.

    BenH
    Here is the link to the file on the IRS Website:

    https://www.irs.gov/pub/irs-prior/p15t--2021.pdf
    Paul Mayer
    ZPAY Payroll Systems, Inc.

  2. #12
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    Mar 2021
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    Thank you Paul. To be clear, should the "Federal Tax Table" in the software under Tools-Federal Tax Table-Married Filing Jointly match the 2021 Percentage Method Tables for Automated Payroll Systems on pg 6 of Pub 15-T.

    Again, I'm new to this so pls excuse the ignorance.

  3. #13
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    Quote Originally Posted by BenH View Post
    Thank you Paul. To be clear, should the "Federal Tax Table" in the software under Tools-Federal Tax Table-Married Filing Jointly match the 2021 Percentage Method Tables for Automated Payroll Systems on pg 6 of Pub 15-T.

    Again, I'm new to this so pls excuse the ignorance.
    No we used page 55 which has the 2021 Percentage Method Tables for Manual Payroll Systems With Forms W-4 from 2020 or Later MONTHLY Payroll Period.

    We converted the Monthly to Annual figures to create the tables.
    Paul Mayer
    ZPAY Payroll Systems, Inc.

  4. #14
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    Mar 2021
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    Thank you Paul. Something is not working with our software. Post the 3.13.21 update, we have an employee whose Federal withholding went down by $113. The software now shows his federal withholding to be less than his state withholding. I've filled out the worksheet from the IRS 15-T and arrived at the pre 3/13/21 withholding number for him. We have used this software for 15+ years, and have never seen this much variability in withholding. Can you please help us figure this out.

  5. #15
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    We use the formulas on pages 52 to 56 in Publication 15-T.
    Paul Mayer
    ZPAY Payroll Systems, Inc.

  6. #16
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    Apr 2021
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    Hi Paul, i see there is a reduction in the federal tax rates but I pay a couple of employees 675 once a month and for march it took out 0$ for federal tax. Can this be correct?

  7. #17
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    Quote Originally Posted by CRANMIKE View Post
    Hi Paul, i see there is a reduction in the federal tax rates but I pay a couple of employees 675 once a month and for march it took out 0$ for federal tax. Can this be correct?
    Actually a person earning only 675 a month is not earning enough to pay FIT, they would need to earn $2092 before taxes are deducted. Please go to this link below though to be sure you do have everything set up properly using the 2021 W4 Forms from your employees.

    https://zpay.com/vbulletin/showthrea...-March-13-2021
    Paul Mayer
    ZPAY Payroll Systems, Inc.

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