Withholding Info W4/W5 US - Copy and Update Record
Use this procedure to copy an existing Withholding Info W4/W5 (0210) infotype record and update it with necessary changes. Using the Copy action will retain the history of the previous record.
In order to process payroll, employees must have an active Withholding Info W4/W5 US (0210) infotype record.
Please note per the Education Jobs and Medicare Assistance Act the W5 has not been used since 2010.
Federal tax overrides from Add. Withh. Info. US (0234) infotype will appear in Withholding Info W4/W5 US (0210) records. Federal tax overrides cannot be maintained directly in Withholding Info W4/W5 US (0210). Refer to the Add. Withh. Info. US procedures.
Enter transaction code PA30 in the command field and click the Enter button.
Complete the following field:
- Personnel no.
Click Enter to populate the employee information.
On the Payroll tab, select the Withholding Info W4/W5 US radio button.
Click the Overview button.
Select the record you wish to copy radio button.
Click the Copy button.
Enter the appropriate Start and To dates.TIPS:
If copying a record dated prior to 1/1/2020, you must click Enter two times to populate the new 2020 selections.
When using the Copy button, the Start and To dates will populate with the dates of the existing record. Be sure to enter the new Start and To dates to keep the history of the existing record.
The Start date should reflect the actual check date the elections are to begin. If you are uncertain of the check date, refer to the Payroll Calendar.
The To date should reflect the end date of the elections. For example:
- If you are creating an exemption and the exemption is ongoing, use 12/31/9999 as the end date.
- If the exemption is to end, use the day before the check date in which the exemption ends as the end date.
When making a retroactive change in accordance with the specific check date, retroactive changes will only process the initial period if another infotype record is also maintained for the same pay period.
HRMS will not retroactively collect taxes from an employee, but will refund an employee and correctly adjust the employer amounts (both collect or refund).
For this example, the employee’s exemption will be effective for one pay period only, therefore it is dated with a Start date of the check date for the period exempted and the To date of the day before the next check date.
Enter the necessary changes to the record.TIPS:
The Allowance Withholding (Original) should only be used if the employee’s form is dated prior to January 2020. Use Redesigned (TCJA) if the employee’s form is dated January 2020 to current.
Filing Status should contain the box checked in Step 1(c) of the Form W-4:
- Single or Married filing separately:
- 01 or 03
- Married filing jointly (or Qualifying widow(er))
- 04 or 08
- Head of household
- NOTE: Do not use 02 as it is for employees that have an active Form W-4 from 2019 or earlier.
- Single or Married filing separately:
The Use Higher Withholding Rates Schedule indicator should be checked if the employee has checked the box in Step 2 of the Form W-4.
Credits for dep. should reflect the total amount in Step 3 of the Form W-4.
The Tax Exempt Ind. field determines if the employee is exempt from taxation. The field will default to not exempt.
Using the Tax Exemption indicator “Y” will make the wages exempt from taxation and not reportable to the IRS.
- Example for this indicator: Payments processed for deceased employees.
Using the Tax Exemption indicator “R” will make the wages exempt from taxation and earnings reportable to the IRS.
- Example for this indicator: Employees who submit a W-4 with the filing status of “exempt.” Employees claiming except from withholding will write the word ‘Exempt’ in the space under Step 4(c) of the Form W-4.
Add.withholding should contain the amount in Step 4(c) of the Form W-4.
The Non-resident tax calculation indicator should be selected for an employee designated as a non-resident for payroll tax calculation purposes. See Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities.
Other income should contain the amount in Step 4(a) of the Form W-4.
Deductions should contain the amount in Step 4(b) of the Form W-4.
Click the Enter button to validate the information.TIPS:
Depending on the dates selected, you may receive a message indicating the previous record will be split or delimited. Click Continue to accept the message.
Click the Save button.