SmartFusion Modules > Payroll > Parameters > Federal Tax Table

Federal Tax Tables are updated each year (Refer to Tax Table Update)

Recent Changes: 
6.92
- Added two new fields to the Non-Standard table for "Single withholding allowance" and "Married withholding allowance" which will be used when determining the exemption amount. This only applies to employees who have submitted a w-4 after the year 2020.
6.91 
- New table for Non-Standard rates. This table will be used only for employees who have submitted a w-4 after the year 2020

Introduction

The federal tax table is used by the system to determine the federal tax to withhold for each employee during the Payroll Register process. The employees w-4 setup can be found on the Tax tab of the Enter/Edit Employee Master screen.

The tax rates may change every year. Tax Table Update is used annually to update the tax rates with the new rates provided by the IRS. For more information on how these rates are used to calculate the federal tax withholdings, please reference https://www.irs.gov/forms-pubs/about-publication-15-t.

Standard Table

The standard table is to be used by employees who have filed a w-4 before the year 2020 or who do not have the "Don't use standard tax table" field checked on the Tax tab of the Enter/Edit Employee Master screen. Head of Household will only be used if the employee has filed a w-4 after the year 2020. All employees who have filed previously, should only use the Single or Married tax table.

Non-Standard Table

The non-standard table is only used for employee who have filed a w-4 after the year 2020 and who have the "Don't use standard tax table" field checked on the Tax tab of the Enter/Edit Employee Master screen.