Use the W-4 Calculator to determine the appropriate number of employee withholding allowances based on the federal tax liability calculated by Planner CS and wage information you enter in the W-4 Calculator dialog for up to four employers.
- With a plan open, choose Tools > W-4 Calculator.
- In the W-4 Calculator dialog, select an alternative and year from the drop-down lists and click OK.
- In the Withholding Required group box in the W-4 Calculator dialog, the Total federal tax field represents the federal tax liability for the specified plan year and alternative, net of any refundable credits and any estimated tax payments or non-wage withholding entered in the Payments > Federal Pmts tab.
If desired, enter a refund or balance due amount in the Refund / - Balance due desired field. Enter a balance due as a negative number. The value in the Withholding required field is the basis used by the W-4 Calculator to compute the appropriate number of federal withholding allowances.
- Mark the Calculate additional withholding per pay period from highest wage employer checkbox if you want Planner CS to calculate additional tax to be withheld from each paycheck by the highest-wage employer.
- In the Highest Wage Employer group box, enter the employer name, W-4 filing status, annual wage, payment frequency, periods remaining, and year-to-date withholding in the appropriate fields for the employer with the highest annual wage. For a joint return, select Tp or Sp in the Tp/Sp field. Planner CS will calculate the appropriate number of withholding allowances and total tax withheld for the year for the highest-wage employer.
If there is only one employer, enter the employer information in the Highest Wage Employer group box.
- In the Lower Wage Employers group box, enter the employer name, W-4 filing status, annual wage, payment frequency, periods remaining, year-to-date withholding, and number of withholding allowances in the appropriate fields for up to three additional employers. For a joint return, select Tp or Sp in the Tp/Sp field. Planner CS will calculate the total tax withheld for the year for each of the lower-wage employers.
- To print Form W-4, mark the Print checkbox for each employer for whom you want to print the form. Then click the Print button.
- You will not be able to print Form W-4 if the plan year you selected for W-4 calculations corresponds to a tax year for which the IRS has not yet released Form W-4.
- To print the selected Forms W-4 after closing the W-4 Calculator dialog, choose File > Print Forms, then click the W-4 tab.
- Click OK to close the W-4 Calculator dialog and transfer results to the W-4 Withholding tab located under the Main button in the federal module.
Note: The fields in the W-4 Withholding tab cannot be edited. To change the data entered, repeat steps 1 to 6 above. To clear the information in the W-4 Withholding tab, delete all data entered in the W-4 Calculator dialog and click OK.