2020 W-4 and Federal Withholding Calculation

We have released an update for the Federal Income Withholding tax based on if you are using the 2019 W-4 form, or the 2020 W-4 Form. If you have not done so already, check for and install any updates that are available for your Aatrix Payroll program.

After the updates have been installed, go to Employee Information and select the first employee on the list that you process a paycheck for. To the right under the Tax section, for the Federal Filing Status drop down menu choose their filing status:

• If you are using the 2020 W-4 then choose the Filing Status based on their selection from Step 1 and whether the box in Step 2 is checked or not checked.
• If you are still using the 2019 and earlier W-4 select Single 2019 W4 or Married 2019 W-4 based on their filing status selection on the 2019 W-4.

If you are using the 2019 W-4 enter the Number of Claims, or how many dependents, enter the number in the box to the right.

Any additional withholding indicated on the W-4 is entered in the Extra Withholding box. On the 2020 W-4 the additional withholding amount is reflected in Step 4 (c).

Repeat the above steps for all employees that are to be paid this year.

If you are using the 2019 W-4 form that is all you need to do to set up the employees Federal Tax Deduction.

If you are using the 2020 W-4, go to Payroll Items and select the first person on the list that you do a paycheck for. Double click on the Federal Withholding listed under Deductions in red.

From the 2020 W-4 select the Marital Status and if the box in Step 2 (c) is checked or not checked. Click Next.

Select whether the employee is a Resident, or Non Resident and click Next.

From the 2020 W-4 enter the dollar amount from line 3 and click Next.

From the 2020 W-4 enter the amount from Step 4 (a) Other Income (not from jobs) and click Next.

From the 2020 W-4 enter the amount from Step 4 (b) Deductions and click OK.

Repeat for all employees with the 2020 W-4 to set up their Federal Tax calculation For any new employees that are entered you will need to go thru the same steps above to set up their Federal Withholding Tax.

Related Pages:

Entering New Employees

Learn how to enter new employees into Aatrix Top Pay.

Suffixes in Last Names (Jr., Sr., III, etc.)

Read on how to include suffixes in employee names.

Terminating an Employee

Learn how to change the employee's hiring status when they no longer work for your company.

Creating and Maintaining your own Employee List

Learn how to create and maintain your employee lists.

Tax Filing Status for Employees

Learn how to assign tax filing status to existing and future employees.