2020 FEDERAL WITHHOLDING TAX TABLES

(*REVISED December 27, 2019)

The SkilMatch FIT tables were created using the IRS “early release” 2020 Percentage Method Tables for Automated Payroll Systems published December 2019. SkilMatch will notify you if there are changes to the 2020 FIT tax table.

NEW January 2020: SkilMatch programming installed to enable NEW 2020 W4 compliance. The NEW 2020 W4 requires the NEW Federal tax setup options starting January 1, 2020. You must update the Federal tax tables AFTER your last payroll checks dated in 2019 and BEFORE your first payroll checks dated in 2020. Change your FIT tables in ALL Temp payroll companies. Staff payroll in the same company will share the table.

2020 Federal tax tables changes:

1) 2020 Federal tax table 01, “FIT-STANDARD” includes a NEW “Head of household” table.

2) 2020 Federal tax table 01 requires the standard deduction for calculating employee’s tax. NOTE: 2020 Federal tax table 02 does NOT include a standard deduction.

3) NEW 2020 Federal tax table 02, “FIT-W4 STEP2, CHKBOX” for Married, Single and Head of household.

NOTE: PRELIMINARY step REQUIRED before Federal 02 tax tables can be entered into SkilMatch. New PR GL Distribution code needs setup for Federal 02-FIT-W4 STEP2 CHKBOX,

through Menu File Maintenance, Item PR GL Distributions.

12/27/19 CORRECTED “Tax Table %”, changes have been highlighted in yellow.

Tax Table % changes have been made on the following tables:

Federal 01 – Head of household

Federal 02 – Married

Federal 02 – Single

Federal 02 – Head of household

NOTE: The tax rates were originally shown with one zero missing, so the tax rate of 10% was entered as 1000 (1%) and should have been entered 10000 (10%). All tax rates should be reviewed and adjusted to match the tax tables below.

NOTE:  Tax table changes are effective for the company number entered.  You will need to REPEAT the setup for ALL company numbers for which you are calculating payroll taxes.   Tax tables will be effective for both Temp and Staff for this company number.

Federal Tax Table 01

“FIT-STANDARD”

MARRIED

NEW: Federal 01 tax tables NOW include a Standard Deduction for Married, Single and Head of Household.

NOTE: Federal 01 tax table continues to include Personal Exemption Dollars.

SINGLE – Federal Tax Table 01 “FIT-STANDARD”

NEW HEAD of HOUSEHOLD – Federal Tax Table 01 “FIT-STANDARD”

NOTE: If this is the first time you are entering data for Head of Household, you will need to select the option “Add”.

*corrected “Tax Table %” below

YOU ARE NOT FINISHED – NEW FEDERAL 02 TABLES ARE ALSO REQUIRED FOR 2020 PROCESSING.

NEW Federal Tax Table 02

“FIT – W4 STEP2, CHKBOX”

MARRIED

REMINDER:

PRELIMINARY step REQUIRED before Federal 02 tax tables can be setup.

New PR GL Distribution code needs setup for Federal 02, “FIT-W4 STEP2 CHKBOX” through Menu File Maintenance, Item PR GL Distributions.

NOTE: If this is the first time you are entering data for Federal Tax Table 02, Married, Singe and Head of Household, you will need to select the option “Add”.

NOTE: Federal 02 tax tables do NOT include a Standard Deduction for Married, Single and Head of Household.

NOTE: Federal 02 tax tables do NOT include Personal Exemption Dollars.

*corrected “Tax Table %” below

NEW SINGLE – Federal Tax Table 02 “FIT-W4 STEP2 CHKBOX”

*corrected “Tax Table %” below

NEW Head of Household – Federal Tax Table 02 “FIT-W4 STEP2 CHKBOX”

*corrected “Tax Table %” below

NOTE:  Tax table changes are effective for the company number entered.  You will need to REPEAT the setup for ALL company numbers for which you are calculating payroll taxes.   Tax tables will be effective for both Temp and Staff for this company number.

LEGAL DISCLAIMER and Customer Responsibilities:

When SkilMatch staff or a SkilMatch program provides information, data, calculation, tax tables, magnetic media or paper reporting to SkilMatch customers, a “best efforts” attempt has been made by SkilMatch to verify that the information is correct as SkilMatch understands it or as it has been explained to SkilMatch. SkilMatch-provided tax tables and reporting are provided to assist customers in setting up your tax table records and to assist customers in reporting to government authorities. Tax laws and requirements change frequently and it is a customer’s responsibility to verify the accuracy of all SkilMatch-provided information and reporting with your tax advisor, accountant and/or attorney.

SkilMatch attempts to monitor for tax table and reporting changes. However, when a customer receives ANY notification of change from a taxing authority, SkilMatch should be notified. SkilMatch depends on customers who are closest to the taxing authorities to provide information that will affect their businesses. Any and all written, verbal or electronic information provided by SkilMatch regarding tax tables and government reporting (1) is meant to provide general information about the payroll process, (2) is not intended to provide tax or legal advice, (3) is not intended to address, and is not meant to address, the entire body of federal, state and local law and regulation governing the payroll process, payroll taxes, government reporting or employment law. Such laws and regulations change frequently and their effects can vary widely based upon specific facts, circumstances and timing. Each customer is responsible for consulting with a professional tax advisor, accountant and/or attorney concerning its specific concerns and compliance.