Knowledge Base

How Do I Update My Federal Tax Tables?


Where do I find the tax tables?

For Federal tax tables, you will need the current Publication 15 "Circular E Employer's Tax Guide" and Publication 15-T "Federal Income Tax Withholding Methods" from the IRS.

Which tables do I use?

PowerChurch Plus uses the Percentage Method for calculating taxes on an annualized basis. Therefore, use the "Percentage Method Tables for Automated Payroll Systems" shown below.

Note that the figures shown in this document are for demonstration purposes only, and may not be current. Please consult the current publication for the most up-to-date information. Though the figures change periodically, the method of calculation should remain the same. If the calculation method has changed please notify the webmaster.


Figure 1 - 2021 Annual Percentage Tables

 

How to setup/update the tables in PowerChurch Plus

A separate table will need to be created in PowerChurch for the single, married, and head of household table rates labeled "STANDARD Withholding Rate Schedules" in the documentation.

Also, starting with the redesign of the W4 form in 2020, you will potentially need a second set of tables, shown on the right side of Figure 1 above, for employees with a 2020 W4 with Step 2 Checked.

Refer to Form W4 Redesigned for 2020 for more information.

To setup/update PowerChurch Plus with the federal tax tables shown in Figure 1 above, go to Accounting > Payroll > Setup, then Maintain Tax Tables. Click Add to enter a new table, or use the Locate button to select an existing Federal tax table to update. When adding a new table, you will be prompted for the type of tax table you're adding. Select Federal: Withholding. For each table, enter the following information:

  • Description: Enter a unique name to identify the tax table (for example, "Federal Married - Standard").
  • Tax type: The type of tax in which this table applies. In this instance, select Federal Withholding.
  • Withholding allowance: There is no longer a mention of the "Amount for one withholding allowance" in the IRS documentation. Now, the amount is just listed in "Worksheet 1. Employer's Withholding Worksheet for Percentage Method Tables for Automated Payroll Systems". The amount is listed on line 1k as pictured below in Figure 2. This is amount is only used in calculations for employees with a W4 from 2019 or prior.


Figure 2 - 2021 Withholding Allowance 
 
  • Round tax to nearest whole dollar:Check this box to round the calculated tax amount to the nearest whole dollar.
  • Annual Rate Table: Click the Annual Rate Table tab. Enter the figures from the "But less than" column followed by the "Plus this percentage" column for each bracket.


When you are done, the screen should look like this:


Figure 3a - Federal Married Tax Table (Deduction and Exemption Information)



Figure 3b - Federal Married Tax Table (Annual Rate Table)

 

Tax Tables for Social Security and Medicare

Publication 15 has the current rates for Social Security and Medicare. The percentage rates for these tables have not changed in recent years. However, the Cap amount for Social Security usually changes every year.


Figure 4 - Social Security and Medicare rates

To setup/update PowerChurch Plus for Social Security and Medicare tax tables, select the Accounting menu, Payroll, Setup, then Maintain Tax Tables. A separate table will need to be created for the Social Security and Medicare rates.

Click Add to enter a new table, or use the Find/Locate buttons to select an existing table to update. When adding a new table, you will be prompted for the type of tax table you're adding. Select Federal: Social Security or Federal: Medicare. For each table, enter the following information:

  • Description: Enter a unique name to identify the tax table (for example, "Social Security").
  • Tax type: The type of tax in which this table applies. In this instance, select Social Security.
  • Percentage: Enter the current applicable rate.
  • Cap: Check the box "There is a cap on this tax" and enter the amount in the Cap (gross) field. Currently there is no limit on the amount of wages subject to Medicare tax. Be sure to consult current publications as this may change.
  • Round tax to nearest whole dollar: If required, check this box to round the calculated tax amount to the nearest whole dollar.


When you are done, the screen should look like this:


Figure 5 - 2021 Social Security Tax Table


The process will be the same to add or update the Medicare table, though there is no cap on that.

Figure 6 - 2021 Medicare Tax Table

This article applies to the following PowerChurch versions:
PCPlus V 11/11.1, PCPlus V 11.5/11.55, PowerChurch Online

Keywords:
federal tax table, tax table, taxes

Created: 12/23/2009
Last updated: 02/24/2021