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 - 2020 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, labelled "Form W4 Step 2 Checkbox Withholding Rate Schedules", where employees can now opt to have a higher tax rate deducted. This is now creates a potential for six different Federal tax tables to maintain instead of two.

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, select the Accounting menu, Payroll, Setup, then Maintain Tax Tables. Click Add to enter a new table, or use the Find/Locate buttons 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 Single - 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 5. Employer's Withholding Worksheet for Percentage Method Tables for Manual Payroll Systems With Forms W4 From 2019 and Earlier", Table 6, Annually, as shown in the image below.

Figure 2 - 2020 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 Single Tax Table (Deduction and Exemption Information)



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

 

Tax Tables for Social Security and Medicare

Publication 15 also 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.

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 (i.e. 6.2%).
  • 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 4 - 2020 Social Security 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: 12/26/2019