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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Original Message:
Sent: 03-30-2022 12:48
From: Jeff Schwenk
Subject: Payroll v2.22 Withholding calculations
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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Original Message:
Sent: 03-30-2022 11:30
From: David Overholt
Subject: Payroll v2.22 Withholding calculations
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".
Original Message:
Sent: 3/30/2022 11:25:00 AM
From: Dawn Kulbacki
Subject: RE: Payroll v2.22 Withholding calculations
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.