Withholding Tables Setup

[laanra]

I am using PC+ version 11.1 - When I change the withholding tables set up for State taxes it is not giving me a place to change the personal exemption allowance amount. What am I missing?

Thanks,
Lois

[Jeff]

What state are you in?

[RLM]

I have the same issue in IOWA. Our new pastor has requested an Iowa State W-4 in order to reduce his IA State income tax withholding. He is claiming multiple allowances, but I cannot find anywhere in the STATE Tax Table set-ups to enter that information.

[Jeff]

When you setup the Iowa tax table you specify the annual dollar amount for the standard deduction and and personal allowance. If you have some people claiming 0 or 1 and other claiming 2 or more, you will need to create 2 tax tables. (ie IA State 0 or 1, IA State 2 or more)

You will enter the actual number of exemptions when you setup his pay items in Maintain List of employees.

https://www.powerchurch.com/support/kb. ... 105&type=1

[NeilZ]

FWIW .. there is also table setup info for other states in the Knowledge Base ..

https://www.powerchurch.com/support/kb. ... articles=1

Enter your state and the word 'tax' in the search box, as in Pennsylvania tax.

[RLM]

Thank you Neil -

I have the correct set-ups, I guess that in the State of Iowa, regardless of the amount of allowances claimed that there are only two tax table options which you have already noted. '2 or more' doesn't change one iota from 2 exemptions to infinity. It is good to know that I had not overlooked something....

[RLM]

As a follow-up question I am wondering why I see withholding that exceeds the amount listed in the Iowa Withholding Tax Guide when I use 6 allowances. It seems to me that if anything the amount withheld should be the same, which would be consistent with the tax guide.

For the amount of this employees gross weekly payroll, according to the Iowa Withholding Tax Guide it should remain a static let's say, $43 amount for allowances that exceed '2' when the '2 or more' tax table is used. PowerChurch increases that amount by $3.00 per week in withholding even when I use 6 allowances. How does that work?

[Jeff]

Only the standard deduction is static for 2 or more. The personal allowance in your example would still be multiplied by 6.