Withholding exceeds paycheck

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CorinthBC
Posts: 33
Joined: Tue Nov 07, 2023 3:09 pm

Withholding exceeds paycheck

Post by CorinthBC »

What will PowerChurch do when an employee has asked for extra money to be withheld from their monthly check and there is a month when that amount is greater than their gross pay? For example...they work two jobs and on their W4, they have requested that $260/month extra be withheld from federal taxes...but they only work enough hours that particular month for $200 gross pay. Will PowerChurch know to process any state withholding first, then withhold the entire balance of their pay for federal?

NeilZ
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Joined: Wed Oct 08, 2003 1:20 am
Location: Dexter NM
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Re: Withholding exceeds paycheck

Post by NeilZ »

CorinthBC wrote:
Thu Oct 17, 2024 10:25 am
What will PowerChurch do when an employee has asked for extra money to be withheld from their monthly check and there is a month when that amount is greater than their gross pay? For example...they work two jobs and on their W4, they have requested that $260/month extra be withheld from federal taxes...but they only work enough hours that particular month for $200 gross pay. Will PowerChurch know to process any state withholding first, then withhold the entire balance of their pay for federal?
I'm fairly sure that the system does Federal first, then state. What I would do in this case is to manually adjust the Federal withholding to only take out what is left after the state tax is determined. I would process this employee separate from the rest.
Neil Zampella

Using PC+ since 1999.

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