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  • 1.  Payroll v2.22 Withholding calculations

    Posted 03-30-2022 11:14
    Does anyone have clients reporting employees not having sufficient taxes withheld?  One of mine is receiving feed back that employees are finding out that they are under withheld after filing their 2021 tax return.  I did have one company last year not updating their tax tables.

    We haven't manually calculated taxes yet.

    Client has been using the business framework PR for several years now.  Client wants verification that tables are working correctly.

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    Jeff Schwenk
    Bottomline Software, Inc.
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  • 2.  RE: Payroll v2.22 Withholding calculations

    Posted 03-30-2022 11:25
    Just found this issue with a client of mine.  Had to do with how the employee filled out the W4 form.  That new W4 form is really a pain and the employee was claiming themselves as a dependent and should not have been.  This caused the taxes withheld to be less than expected.

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    Dawn Kulbacki
    Capitol Computer Systems, Inc.
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  • 3.  RE: Payroll v2.22 Withholding calculations

    Posted 03-30-2022 11:31

    I agree with what Dawn said, We have a client with about 3,000 employees and they were inundated with employees calling after they got their W-2s. Most of these employees were filing with a status of  "Married "  and most had dependents; we took this to our payroll guru to walk through the calculations manually. She determined that the taxes were being withheld correctly based on the annualized wages formula that Sage uses and she confirmed that it matched the Federal formula when annualizing wages.  This client is telling employees to fill out new W-4 forms to indicate they want to withhold as "Single".  

     

     

     

    David Overholt

    DWD Technology Group, Inc.

    9921 Dupont Circle Drive West, Suite 300 | Fort Wayne, IN 46825

    260.423.2414 main

    800.232.8913 toll free

    sagesupport@dwdtechgroup.com

    www.dwdtechgroup.com

     






  • 4.  RE: Payroll v2.22 Withholding calculations

    Posted 03-30-2022 12:49
    This client has employees working part time.  When I bumped up one employee by $50 it calculated FIT.  Now new CFO is saying she is being under withheld as well.....

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    Jeff Schwenk
    Bottomline Software, Inc.
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  • 5.  RE: Payroll v2.22 Withholding calculations

    Posted 03-30-2022 13:04
    I've been advising people to use the "2" selection (S1, S2, MJ1, MJ2, etc) instead of the "1" if they want it to act similar to the old withholding.

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    Beth Bowers
    Mom to Peanut, ChiChi, Canton, Cagney and Daisy (I miss you, Sammy)
    Tennessee Software Solutions
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  • 6.  RE: Payroll v2.22 Withholding calculations

    Posted 03-30-2022 13:41
    Thanks @Beth Bowers ​I was not aware of that as an alternative. I will relay that information on to my client.

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    David Overholt
    DWD Technology Group
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  • 7.  RE: Payroll v2.22 Withholding calculations

    Posted 03-30-2022 13:05
    I just had a call on this same topic earlier this week.  I agree with @Dawn Kulbacki that it's likely related to the new tax calcs that were effective with the new W4 form.  I asked my client if it was her part-time employees experiencing the issue but she never responded. 

    I shared links to ADP's online tax calculator so they can see if they get the same net check using that. I've done that periodically over the years when this has come up and that seems to appease them.

    https://www.adp.com/resources/tools/calculators/salary-paycheck-calculator.aspx​
    https://www.adp.com/resources/tools/calculators/hourly-paycheck-calculator.aspx

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    Mary Jo Krueger
    Senior Software Consultant
    CLA (CliftonLarsonAllen LLP)
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  • 8.  RE: Payroll v2.22 Withholding calculations

    Posted 03-30-2022 13:07
      |   view attached
    @Jeff Schwenk  Attached publication 15-A.  You can use this to manually calculate the federal taxes and see if the Sage calculations match.​

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    Doug Higgs
    Midwest Commerce Solutions, Inc
    (312) 315-0960
    Chauffeur, Chef, and Personal Assistant to Sprinkles
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    Attachment(s)

    pdf
    p15t.pdf   2.32 MB 1 version


  • 9.  RE: Payroll v2.22 Withholding calculations

    Posted 03-30-2022 16:42
    Thanks all.  Having meeting set up for tomorrow.  Will check out the suggestions above before then.

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    Jeff Schwenk
    Bottomline Software, Inc.
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  • 10.  RE: Payroll v2.22 Withholding calculations

    Posted 03-31-2022 15:24

    I have had one company where an employee feels that it is not taking enough.  We have found that is someone uses the old tax filing status and selects the number of exemptions, it withholds more that if they use the 2020 tax filing status and puts in an amount for the Exemptions.

     

    I have tested it against Pay Check City and it reflect the differences depending the filing status used.

     

    Sent from Mail for Windows