2020 Federal Withholding Tax

Carlin Cole

Quick reminder for anyone utilizing the Payroll module within Financial Edge, you'll want to add your 2020 Federal Withholding tax records prior to processing your first Payroll run of the year with the steps in https://kb.blackbaud.com/articles/Article/42114.  Please ensure you update information on the new Federal Tax record to align with the latest rates and limits from the IRS found in Publication 15-T: https://www.irs.gov/pub/irs-pdf/p15t.pdf.


Patch 33 contains updates that will load the 2020 tax rates and limits by default when creating the new 2020 Federal Withholding tax record (reminder, the patch does not automatically create the new tax record for you).  Again, please check these amounts against the latest Publication 15-T.


If your database is hosted by Blackbaud, patch 33 is in the process of being installed this week and is anticipated being completed for everyone before January 13th.

If you host your own database, patch 33 is now available for download and an update tax configuration file can be found here: https://kb.blackbaud.com/articles/Article/115836.  This file will need to be installed separately following the steps given in that article.

Daniel Weaver

Thank you for the link to the tax configuration file, that was helpful. Would have been better if the tax tables had already been updated on the hosted servers, but with this information I was able to get the updates entered before running payroll for this Friday.

Neil Cyriac

Good Afternoon,


We are hosted and when using the restore from default 2020 taxes option, the federal tax deduction per exemption and nonresident alien adjustment does not match what is stated on your linked article here for 2020: https://kb.blackbaud.com/articles/Article/115797


Do you know if there is going to be a patch for this coming up. See attached picture:


 

Lauren Monosov

An answer to the question above would be helpful ::hinthint::

Carlin Cole

The Federal tax record should always be checked against the latest information in from the IRS found in Publication 15-T.  No patch is planned to update those amounts at this time since 2020 tax tables have already been created.  These amounts need to be updated manually on the tax record for 2020.

Angela Finley

What are the true  amounts for 2020 deduction per exemption and non alien adjustments?

 

Lauren Monosov

I'm sorry, but having to fact check your patch line for line is absurd. ?‍♀️