Troubleshooting Federal Income Tax in AccountEdge
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Troubleshooting Federal Income Tax in AccountEdge
If you are questioning the Federal Income Withholding amounts on your employee(s) paychecks, please use this article and the resources found within to cross-check the amounts and to ensure the employee(s) card profile is setup correctly.
How AccountEdge Calculates Federal Income Tax Withholding
AccountEdge uses what is known as the “Percentage Method Tables for Automated Payroll Systems” from the IRS Publication 15-T.
Down below is a link to the IRS Publication 15-T for Federal Withholdings.
This will be your best tool to use to double check your calculations in AccountEdge.
IRS Publication 15-T for Federal Withholdings
Page 8 and 10 of Pub 15-T will need to be used to compare AccountEdge calculations.
ADP is a very well known business for their Payroll Processing. If you are looking for a little bit quicker and easier way to cross-check calculations, we suggest trying out their Payroll Calculator*. Here is a link to ADP’s Payroll Calculator:
*If the calculations aren’t matching AccountEdge when using the online payroll calculator, please then refer to the IRS Publication 15-T found above.
Marital Status
Federal Income Tax is heavily influenced by Marital Status, so this needs to be set to the correct status for each employee’s card file within AccountEdge.
The Marital Status will be selected on the employee(s) W-4 form:
The IRS has 5 filing statuses, and they are:
- Single
- Married Filing Jointly
- Married Filing Separately
- Head of Household
- Qualifying Widow or Widower with Dependent Child
Within AccountEdge, they are classified as:
- Single = SINGLE
- Married Filing Jointly = MARRIED
- Married Filing Separately = SINGLE
- Head of Household = HEAD OF HOUSEHOLD
- Qualifying Widow or Widower with Dependent Child = OTHER
So in a case of "Married filing Separately" the status in AccountEdge would be SINGLE since this status withholds at the same tax bracket and percentages as SINGLE status.