Taxes incorrect using Federal filing statuses based on W4 effective 2020
Description
Cause

The Tax Cuts and Jobs Act changed the way tax is calculated.

Per the IRS the W4 effective 1/1/2020,

"The new design reduces the form's complexity and increases the transparency and accuracy of the withholding system. While it uses the same underlying information as the old design, it replaces complicated worksheets with more straightforward questions that make accurate withholding easier for employees. Allowances are no longer used for the redesigned Form W-4. In the past, the value of a withholding allowance was tied to the amount of the personal exemption. Due to changes in law, currently you cannot claim personal exemptions or dependency exemptions.

Resolution

Use W4 effective 2020 to calculate federal withholding tax or consult your Accountant.

https://www.irs.gov/payments/tax-withholding

https://www.irs.gov/newsroom/tax-time-guide-tax-withholding-estimator-helps-retirees-workers-and-self-employed-calculate-taxes-fill-out-new-form-w-4

https://www.irs.gov/newsroom/improved-tax-withholding-estimator-helps-workers-target-the-refund-they-want-shows-how-to-fill-out-new-2020-w-4

DocLink: W4 changes effective January 1, 2020 available on Sage 100 Payroll version 2.20.0.0 and higher with Sage 100 2018 and 2019.
DocLink: How to use 2020 W4 settings in Sage 100

[BCB:155:Chat 100 US:ECB]
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