Fed Taxes not withheld

[stmarksec]

I just finished implementation of PowerChurch online for our church. The date of implementation was June 1st, 2013. When I run payroll most of my workers are not having any federal tax withheld. I did implement the tax table for 2013.

Just to give you one example, an employee that is paid $1,600 once per month and has a status of married with zero exemptions is having zero dollars withheld. Is there something about the fact that I am doing a mid-year implementation that is causing her federal tax to be zero? Thanks, -Ron.

[NeilZ]

I just finished implementation of PowerChurch online for our church. The date of implementation was June 1st, 2013. When I run payroll most of my workers are not having any federal tax withheld. I did implement the tax table for 2013.

Just to give you one example, an employee that is paid $1,600 once per month and has a status of married with zero exemptions is having zero dollars withheld. Is there something about the fact that I am doing a mid-year implementation that is causing her federal tax to be zero? Thanks, -Ron.

Just to verify:

1. You created the Fed Tax pay item
2. You have it assigned to the employees and it points to the correct Fed Tax Table (there should be two you implemented, one for single, one for married)
3. The pay item shows that it has been selected.

[stmarksec]

1. You created the Fed Tax pay item - Answer: yes
2. You have it assigned to the employees and it points to the correct Fed Tax Table (there should be two you implemented, one for single, one for married) - Answer: yes
3. The pay item shows that it has been selected. - Answer: yes

[Matt]

The fact that you did a mid-year implementation has no bearing on the calculation of the Federal withholding tax. Based on the pay information you provided the program should be calculating $91.00 of Federal tax withheld (assuming the "Round tax to the nearest whole dollar" checkbox is checked on the "Federal-Married" tax table). Because you have answered yes to Neil's questions it appears there is something wrong with either the way the Federal-Married tax table is set up or the Pay Group that this employee is assigned to. Please verify that the Federal-Married tax table is set up based on the ANNUAL payroll period, as shown in the IRS Publication 15 for 2013. Also, please verify that the Pay Group assigned to this employee is for Monthly (12 checks per year).

[stmarksec]

Guys,

Thanks for all of your help. You pointed me to the right answer. It looks like the federal rates that I entered for single and married last May during implementation of PowerChurch were wiped out. The rates that were there look like erroneous default numbers that are auto-populated. Possibly this took place when I renamed my original federal withholding item description from 'Federal' to 'Federal w/h SM'.

It's too bad they auto-populate with numbers that look like they could possibly be correct. It led me to believe that the problem wasn't with the tax tables.

Again, thanks for being there. -Ron

[NeilZ]

FWIW ... renaming the item description would not have affected the Tax Tables. Its more likely that a restore was done from a backup that didn't have the updated tax tables.

That said, glad to hear you found the issue.