Payroll Tax Withholding Table Update Frequency and Timing

Issue/Symptom/Question

We are converting from another system over to PENTA. In our current system, we control the timing of when we do or don’t update the withholding tables. 

Knowing that the Penta withholding tables are provided by PTI, how does the update work? Is it a patch install that we can still control timing, or is it pushed to us at a specified time?

Environment

System Management

   Technical Support

      Penta Technologies Technical Support

         Tax Table Maintenance

            Federal Rates and Limits

            Federal Withholding Information

            State Withholding Information

Resolution/Fix/Answer

  1. Penta Technologies coordinates with the client base payroll tax kit installations with the following updates:
    1. Federal limits,
    2. Federal tax rates, and
    3. State tax rates. 
  2. Tax installations with the following information will occur mid-December;
    1. Updates related to the W2 and 1099 generation process for that specific year, and
    2. Payroll tax changes effective as of January 1st of the following year.
  3. The tax rates are stamped with the appropriate effective date so current year processing can continue using the current tax rates.
    1. The new tax rates are only utilized when earnings records (checks, direct deposits, voids, etc) are processed with check date in the new calendar year.

There are special situations where tax rates change mid-year and PENTA follows a similar process for mid-year as for end of year updates: PENTA will coordinate with you delivery of the changes with the appropriate effective date.