No Federal W/H for Hourly Employees

[Lolbkpr]

Our church recently added some part-time hourly employees in addition to our regular salary employees. For some reason when we process payroll, there is no Federal Income Tax withheld from the Hourly employees, but it withholds from the Salary employees as it always has. Under the Hourly employees, I do have the Federal withholding under "Pay Items". I have updated the Annual Tax Tables also. I don't see any reason why it would not withhold from hourly. Help!

[NeilZ]

Our church recently added some part-time hourly employees in addition to our regular salary employees. For some reason when we process payroll, there is no Federal Income Tax withheld from the Hourly employees, but it withholds from the Salary employees as it always has. Under the Hourly employees, I do have the Federal withholding under "Pay Items". I have updated the Annual Tax Tables also. I don't see any reason why it would not withhold from hourly. Help!

They're probably not making enough for the rest of the year for withholding to be taken.

If they just started, under the married table, if amount of income is going to be less than $11,800 for the rest of the year, nothing will be taken out. If they're using the single rate, the amount is less than $3,800 a year. Unless they're making a really great hourly rate, I suspect neither one of those numbers will be exceeded.

If they want something taken out, they should fill out a new W-4 form showing the amount 'extra' they want taken out for the rest of the year. Then create one for 2020 if they want that amount to continue, raised or lowered.

The one P/T hourly employee I have would only have $12.46 a month taken out, they asked for an additional $10 per paycheck to be deducted, which makes it $32.46 a month.

[Lolbkpr]

Thank you -
The employee will make about $14,000 per year. Next year, will tax be withheld only after they reach the $11,800? Or will they be taxed all year based on the estimated yearly income? The way the tax table is worded it says it will withhold 10% on whatever amount is over $11,800.
Does PowerChurch estimate this based on the hourly rate x average hours/week?

[NeilZ]

Thank you -
The employee will make about $14,000 per year. Next year, will tax be withheld only after they reach the $11,800? Or will they be taxed all year based on the estimated yearly income? The way the tax table is worded it says it will withhold 10% on whatever amount is over $11,800.
Does PowerChurch estimate this based on the hourly rate x average hours/week?

Next year they will be taxed at the normal rate starting at the beginning of the year. I'm fairly sure that Powerchurch calculates the amounts using the INCOME Pay Item and the numbers listed there. So if the person has 30 hours listed as the normal hours worked per paycheck, the system will use that and the Hourly Rate as entered in the pay item to figure the annual rate. Any adjustment to the hours up or down when Processing Payroll, will be reflected in the amount deducted.

FWIW ... I'd just ask the employee if they would fill our a new W-4 to allow you to take out $5 or $10 a paycheck so they have some withholding at the end of the year. This would alleviate any 'sticker shock' they may get at tax time.