[Mail_treas] Federal withholding

[Debra Dinnen]

Hello,

I installed a patch to the software today that changes the calculation of the federal withholding.  Emloyees with exemptions will see a decrease in their withholding and in increase in net pay.  Here are the details about the change:

For any W-4's before Jan 2020, the IRS changed the Annual Exemption Amount per exemption for all employees for pay dates in 2020 from $4,200 to $4,300.

For any W-4's after Jan 2020, the IRS changed the Annual Exemption Amount for pay dates in 2020 from $8,400 to $8,600 if the filing status is Married Filing Jointly.  For those whose filing status is Single or Head of Household, the Annual Exemption Amount changed from $12,600 to $12,900.

The exemption amounts have all been updated and are included in this update.

For employees who were paid in 2020, but do NOT have any exemptions on their Federal record, would not be affected by the Annual Exemption Amount.

The Federal deduction amount for any employee paid in 2020 that have exemptions on their Federal record will see a reduction in the Federal deduction amount.  For most people it should be about $1 or so (the greater the number of exemptions,  the greater the amount).

Also, since this is a Federal deduction amount, the difference will be taken into account when the employee files their 2020 taxes.

We strongly recommend that any district who has not completed their payroll, go back and re-run CALCPAY so that the changes can affect the current pay.

Let us know if you have any questions.


Deb Dinnen
937-767-1468 x3113
MVECA
330 E Enon Rd
Yellow Springs, OH 45387


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