2020 W-4 and Federal Withholding Calculation

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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.

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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:

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* 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.

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* 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.

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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.

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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).

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

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[[image:https://www.aatrix.com/files/1315/8187/7823/Mac_W4-FedWithholding-Calculations_01.png||alt="Read about the Aatrix software update W-4 and Federal Withholding Calculations"]]

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

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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.

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

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[[image:https://www.aatrix.com/files/5915/8187/7832/Mac_W4-FedWithholding-Calculations_02.png||alt="Read about the Aatrix software update W-4 and Federal Withholding Calculations"]]

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

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[[image:https://www.aatrix.com/files/1915/8187/7881/Mac_W4-FedWithholding-Calculations_03.png||alt="Read about the Aatrix software update W-4 and Federal Withholding Calculations"]]

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

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[[image:https://www.aatrix.com/files/3915/8187/7896/Mac_W4-FedWithholding-Calculations_04.png||alt="Read about the Aatrix software update W-4 and Federal Withholding Calculations"]]

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

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[[image:https://www.aatrix.com/files/5515/8187/7912/Mac_W4-FedWithholding-Calculations_05.png||alt="Read about the Aatrix software update W-4 and Federal Withholding Calculations"]]

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

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[[image:https://www.aatrix.com/files/4315/8187/7927/Mac_W4-FedWithholding-Calculations_06.png||alt="Read about the Aatrix software update W-4 and Federal Withholding Calculations"]]

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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.

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== Related Pages: ==

=== [[Entering New Employees>>doc:Mac.Employee Information .Entering New Employees.WebHome]] ===

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Learn how to enter new employees into Aatrix Top Pay.