After upgrading to 20.3 or higher, FWH calculates lower or not at all
Description
Cause
Changes to Federal Withholding tax (FWH) were implemented in version 18.4.1 Update 3. IF Update 3 was not installed on the workstation where Payroll was processed, FWH tax calculated a higher amount than was designated in the IRS tax withholding tables.
Resolution
CAUTION: Sage support can't assist with third-party products, hardware, report customizations, or state and federal tax questions. Refer to our Scope of Support for more info. Contact your Sage business partner, network administrator, or accountant for assistance.


CAUTION: If you use third-party products that integrate with your Sage product, check with the vendor of your third-party product to ensure their product is fully compatible with this release. If you integrate with other Sage products, check with your business partner or Sage to ensure that these components are compatible. 


If the employee would like the tax to calculate differently, you can review How do I set up employees to use the new Form W-4?, which will cover the process to set the new W-4 and what options are available.

You can confirm the results on the IRS website which includes a downloadable tax calculator.



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Steps to duplicate
Related Solutions

How do I verify that Payroll taxes are calculated correctly?