State taxes are not calculating correctly in payroll
Description of Issue
My State tax deductions are not calculating correctly in payroll.Â
Context
- Munis
- Deduction and Benefit Master
- Employee Deductions
Cause
The 2020 or later W-4 checkbox was checked on the State Tax Deductions.Â
Resolution
Uncheck the 2020 or later W-4 checkbox for all State Deduction codes. This box is only to be used for Federal Tax Deductions.Â
- Go to Employee Deductions (Payroll>Employee Maintenance>Employee Deductions)
- Search for the State Tax Deduction codes. Click Accept. Click Update and uncheck the 2020 or later W-4 checkbox. Click Accept.Â
- Repeat this step for all Employee Deduction records for State Taxes.Â
- Go to Deduction and Benefit Master (Payroll>Payroll Setup>Deduction and Benefit Master)
- Search for the State Deduction codes. Click Update. Uncheck the 2020 or later W-4 checkbox. Click Accept.Â
Additional Information
When the 2020 or later W-4 checkbox is checked it will ignore the Exemptions field on the Employee Deduction record when calculating the withholdings.Â