State Income Tax Incorrect

After upgrading from version 11.3 to 2021+, the State Tax deduction is calculating a much higher amount for some employees.

• Enterpriser ERP Payroll Support

• Employee Deductions

On the Employee Deduction record for the state tax deduction, the checkbox for 2020 or later W-4 is checked. This checkbox should only be used for Federal Income Tax Deductions and for select States.

1. Navigate to Payroll>Employee Maintenance>Employee Deductions.

2. Click Search and enter Deduction code.

3. Click Accept.

4. Click Update.

5. Uncheck box for 2020 or later W-4. 

If unsure, check with the State to determine if this box should be utilized for State Taxes.