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
- Penta Technologies coordinates with the client base payroll tax kit installations with the following updates:
- Federal limits,
- Federal tax rates, and
- State tax rates.
- Tax installations with the following information will occur mid-December;
- Updates related to the W2 and 1099 generation process for that specific year, and
- Payroll tax changes effective as of January 1st of the following year.
- The tax rates are stamped with the appropriate effective date so current year processing can continue using the current tax rates.
- 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.