Revised: 04/26/11
Go to Maintain>>Federal Withholding
This program is used to view or input federal tax information from Circular E (Publication 15) for the purpose of calculating Federal Withholding for employees. Tax tables may be automatically updated using the Automated Tax Update program or use the Annual Payroll Period table (usually Table 7) and enter the information. Tax information must be entered or pulled and reviewed to update federal tax information as needed.
Select one of the following to update or review and press F9:
M - Married
S - Single
To update the tax table manually, enter the annual amount for one withholding allowance from Circular E (Publication 15) or check for the information at www.irs.gov.
To automatically update this information run the Automated Tax Update.
Automated update
To update tax information automatically, go to Utilities>>Year End Processing>>Automated Tax Update.
Manual entry
Using the Annual Payroll Period table, usually table 7, from IRS publication 15 (Circular E), enter the amounts for the table with the last two amounts entered as 999,999 and 999,999.99.
Make sure you use the appropriate single or married section of table 7 depending on the selection made for this table.
For each of the seven lines, enter the overage amount, the base tax and the percentage and save your information when done.
Review the information after it has been updated using either method. Verify information based on IRS publication 15 (Circular E) for the appropriate payroll year.