Enter Tax Information
Enter your employees' tax elections, allowances, and withholding amounts.
- On the Tax Information tab, only turn on the 2020 W-4 if this employee is new or has requested federal withholding changes.
- Select if you want to defer an employee's Social Security tax. This is optional to you as the employer, even if an employee requests deferral.CAUTION: You must confirm that you understand the following requirements and expectations set by the IRS:
- Employers are not required to permit a deferral, even upon an employee's request, without reason.
- Only wages of less than $4,000 per biweekly pay period qualify for deferral.
- The deferral period is September 1 - December 31, 2020.
- Employers must set up a plan for employees to repay the deferred amount ratably between January 1 and April 30, 2021.
- Employers are responsible for collecting this repayment.
- Employers must pay interest and penalties on amounts not collected by May 1, 2021.
This is for informational purposes only and should not be relied on as tax, legal, or accounting advice. Please consult with legal and tax professionals before opting to defer taxes, and reference the official IRS website for more information.
- Select any necessary elections, and enter withholding.
- If this employee lives out of state, select whether to file taxes from the state in which they live or the state in which they work.
- For ministers, if necessary, calculate the voluntary withholding amounts per paycheck, and enter the numbers.
- If you want to continue with this employee, click Next: ACA. If you want to return to this later, click Save & Close.Note: Ministers typically file Form 4361 to exempt themselves from self-employment tax. If your ministers haven't done this, increase the voluntary amount withheld to offset the cost of self-employment tax they would otherwise have to pay.