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WS: 07: W4 Exempt is not Applied for 2020 Changes (Doc ID 2633382.1)

Last updated on APRIL 12, 2023

Applies to:

JD Edwards World U.S. Payroll Processing - Version A9.3 and later
Information in this document applies to any platform.

Symptoms

When filing exempt with a 99 in exemptions field (XC01) in Tax Withholding/Overrides (P060120) with the new W4 2020 changes, the employee is still being taxed.

Exemption from withholding. You may claim exemption from withholding for 2020 if you meet both of the following conditions: you had no federal income tax liability in 2019 and you expect to have no federal income tax liability in 2020. You had no federal income tax liability in 2019 if (1) your total tax on line 16 on your 2019 Form 1040 or 1040-SR is zero (or less than the sum of lines 18a, 18b, and 18c), or (2) you were not required to file a return because your income was below the filing threshold for your correct filing status. If you claim exemption, you will have no income tax withheld from your paycheck and may owe taxes and penalties when you file your 2020 tax return.

Changes

 

Cause

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In this Document
Symptoms
Changes
Cause
Solution
References


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