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Federal or State payroll tax is calculating incorrectly. Or, tax is calculating the same amount as previous year?

CheckMark makes every effort to have the latest payroll tax tables installed. If your payroll tax is calculating incorrectly, there are several things you can look for.

  • Make sure you are referring to the correct tables in your Circular E.

You should be comparing the tables in the Payroll program to Table 7 (Annual Pay Period) of the Tables for Percentage Method of Withholding.

  • Make sure you are using the latest version of CheckMark Payroll.

You can easily check to make sure you are using the latest version of the software by using the “Check for Latest Version” command under the Help menu in Payroll. If you are not using the latest version, and you are a current user, you can download a patch. If you are not a current user, you can call 970-225-0522 to place an update order.

  • Make sure you have loaded the most current tax tables and parameters.

Click Federal Taxes in the Command Center, then click the Load [current year] Values button. Then, click State Taxes in the Command Center, click Load Latest Tables then click OK.

In CheckMark Payroll for Windows version 4.0.6 and higher and CheckMark Payroll for Macintosh version 6.6.5 and higher

Federal tax values will load automatically if you are in the latest version. CheckMark Payroll will compare the payroll year in the Company Information window and load federal tax values if necessary. If the version and the payroll year do not coincide, a message will be displayed.

  • You may have an incorrect number of Allowances entered for the employee.

On the Taxes tab of the Employee Setup window, check to make sure the Federal and State Allowances are entered correctly and that the state Exemption Total or Tax Credit Total is correct. You can get more information by selecting the Additional Web Information button in this window. This requires internet access on the computer you are working on.

  • You may have a deduction or income item set up to be exempt from federal and/or state taxes incorrectly.

You should check to make sure your additional income and deductions for the employee are set up correctly if they are exempt from any taxes.

  • You may have an incorrect pay frequency assigned to the employee

Verify the Pay Frequency on the Wages tab of the Employee Setup Window and adjust and Save if necessary.

  • Make sure the employee is set up correctly

Verify that the employee’s pay frequency, pay rate, withholding status, etc, is entered correctly.

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