The Federal Withholding seemed to go up or down with the last update in February 2023. What was the reason for this?

Back in 2021 we started the transition to switch to the new 2021 and newer W4 Form. All users should have migrated over to the new form by now but we found that they had not yet.

This page in the help file shows the new form.

In the past you would use the Number of Dependents which is not done any longer as you can see on that page. It would take the number you entered in and multiply it by $4,300 and then subtract that result from the annual taxable wages.

If the employee was paid $30,000 a year and had 3 entered it would reduce the taxable wages by $12,900 making the taxable wages $17,100.

We took and coded PayWindow to no longer use the old Pre-2021 methods and only use the new 2021 and newer method.