This is a copy of the information that we sent to our clients in the 2020 Federal Tax Withholding email. If you have not received that email or would prefer to read the information here we have made it available.
I recommend that you use the Automatic Update to update all your federal tax table figures, or you can change them manually.
Go to setup, accounting options, payroll, select the Federal Taxes tab. The following screen will appear:
Fill in the highlighted fields as shown above. Your Federal ID number and G/L accounts are unique to your company and should already be setup and do not need to be changed.
To change the tax table to the new numbers for the Federal Single Tax table, select the Single tax table and click the Change button. I recommend starting at the bottom of the table and using the tab and up arrow to make the changes. Once again, if you use the automatic update button on the initial screen, the system will update these for you.
The following screen will appear:
To change the tax table to the new numbers for the Federal Married Tax table, select the Married tax table and click the Change button, the following screen will appear:
Enter the minimum amounts and percentages as shown above. Press OK to save your entries.
***There is now a Head of Household tax table.
If you use the automatic update button it will add this table for you!
The Federal Tax Tables are found in Publication 15-T, Federal Income Tax Withholding Methods.
If you would like to look at the federal tax tables on the IRS website click on the following link:
Federal Tax Tables