Tax Table Issue Discovered

On January 8, one of our Njevity team members, Paige Horne, discovered an issue with the tax tables for the new W-4 Higher Withholding filing statuses.

In the current release, the Standard Deduction is reducing the taxable wages before the tax tables are applied for the Higher Withholding filing statuses. The Standard Deduction is actually already factored into the tax tables, so no further deductions should be needed. Currently, Federal withholding is calculating much lower for those filing statuses due to the lower taxable wages.

We have reached out to Microsoft who confirmed with the IRS that a changed needs to be made. In the meantime, Microsoft has sent us a script to fix this issue, and the new tables will be fixed on the site tomorrow. After the fix, the Standard Deduction step will be removed and taxable wages will be accurate when the tax tables are applied.

We will be reaching out to individual customers, but please let us know if you have any questions or concerns by reaching out to us at info@njevity.com.

By | 2020-01-09T04:40:20+00:00 January 8th, 2020|Dynamics GP, Support, Uncategorized|