Federal tax calculation and withholding in Inn-Flow are accurate based on each employee's W-4 selections. Since the 2020 W-4 redesign, employees sometimes withhold too little and owe at year end. If that happens, the employee needs to update their W-4 – the IRS provides tools to help them get it right.
How to check an employee's withholding
Have your employees perform what the IRS calls a Payroll Checkup using the IRS Tax Withholding Estimator. See the attached IRS Publication 5303, which includes the link to the estimator and lists what an employee should have on hand for the best estimate. It is a good document to share with employees.
• IRS Tax Withholding Estimator: https://www.irs.gov/individuals/tax-withholding-estimator
• IRS FAQs on the 2020 Form W-4: https://www.irs.gov/newsroom/faqs-on-the-2020-form-w-4
Make sure the employee reads all instructions included with the form. If they have questions about how to properly complete the W-4, they should consult a tax advisor.
Attached to this article: the IRS Income Tax Withholding Assistant spreadsheet, a Word version of the W-4, and IRS Publication 15-T.