E1: 07: P060120 Federal Income Tax Calculation Incorrect when W4 REVISION YEAR = 2021 (Doc ID 2742464.1)

Last updated on SEPTEMBER 11, 2024

Applies to:

Symptoms

In Employee Tax Overrides, P060120, if you use W4 Revision Year = 2021, the Federal Income Taxes do not calculate correctly for tax year 2021. In this issue the marital status is Head of Household (H), W4 Multiple Job Flag is checked. In addition, amounts are included in W4 Other Income, W4 Total Claim Dependent, and W4 Deductions as well as Additional Federal Withholding. However, if you use W4 revision year 2020, the Federal Income Taxes are calculated correctly.

Steps:

1. Set up EE Tax Overrides as described in Description using W4 Revision Year = 2020 for a US Employee.
2. Add a 2021 Interim Pay for EE setup in Step 1 and confirm Federal Income Tax Calculation is correct.
3. Go to EE Tax Overrides (P060120) for same employee and change only the W4 Revision Year to 2021.
4. Add Interim again on subject EE for 2021 pay and observe that the Federal Income Tax has changed incorrectly.

Cause

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