How to set specific tax withholding amounts for employee federal income tax deductions

Sometimes employees will want to set up a specific federal income tax withholding amount to be deducted from each pay check, rather than using the standard W4 calculations. Sometimes this amount will be higher than the standard calculated withholding amount, sometimes this amount will be lower than the standard calculated withholding amount. In either case, it will be up to you or the employee to properly set up their tax withholding settings in the system to ensure the right amount is deducted each payroll.

Please see below for steps on how to set up the specific withholding tax amount, depending on if the target withholding tax amount is more or less than the current withholding tax amount.

If you do not already know the current federal income tax withholding amount, please follow the steps listed below to find it:

1. Create a test payroll in your payroll account using the expected wages and tax setup information for the impacted employee(s), but do not submit the payroll.
2. On step 2 of the run payroll process, click View details to review the draft paystub for the employee.
3. Here you will see the federal withholding tax amount based on the employee’s current wages and tax setup details.
   • Make sure to store this amount for future reference.
4. Once you have stored all the federal income tax withholding amounts that need adjusting, exit out of the payroll by clicking the ‘X’ in the top right corner.
5. Delete the test payroll by clicking the trashcan icon next to the pending test payroll in your dashboard.

If the requested/target tax amount is more than the current calculated tax amount, please follow the steps listed below to set this up in the employee profile.

1. Find the difference between the target withholding tax amount and the current withholding tax amount
   1. Target tax amount - current tax amount = difference
2. Navigate to the worker profile and select Tax info
3. In the Federal tax info section, add the difference amount to the ‘Extra withholding’ box
4. Save

If the requested/target tax amount is less than the current calculated tax amount, please contact support for additional assistance.