Hello Community, another question from a delighted to be learning QB student.
In performing a Payroll Setup assignment, I was asked to run an Employee Contact List with customized columns. I noticed in checking my work against the Correct example provided that there was a difference in the Federal Filing Status Column. The example provided simply read "single" in the fed tax status column. Mine reads "single/married filing singly". I went into employee information and confirmed the "single" filing status there. I even went into Payroll Setup and confirmed I had "single" designated there (being "new" to QB I don't know which source that report utilizes...check 'em all! I'm in learning but not on the job). I went ahead and printed out an Employee Summary from the Payroll Setup which again shows fed status as "single".
I understand the IRS rates are identical for single and married filing separately, but why is it showing on my report when single is selected and the married filing singly is an option in both the Payroll Setup and the Employee Information areas have the "married using single rate" designation options?
Perhaps the example is from an earlier version of QB? Why would that change be made? Maybe my computer burped while downloading the portable file?
I'm here to share some information about the federal filing status.
The example that you're referring to is from an earlier version of QuickBooks Desktop. The IRS has redesigned Form W-4 for 2020 and updated the filing statuses. In addition, the tax rate for single and married filing separately is the same in the Federal Income Tax Bracket for 2020
These are the filing statuses last year:
Married, but withhold at a higher single rate
Here are the updated filing statuses for 2020.
Single or Married filing separately
Married filing jointly (or Qualifying widow(er))
Head of household (Used only if you’re unmarried and pay more than half the costs of keeping up a home for yourself and a qualifying individual.)
To comply with federal or state labor laws, we've also updated and redesigned our tax forms. Rest assured, the program calculates the income taxes withheld on employee paychecks based on the rates imposed by federal and state governments.
I highly encourage reading the 2020 Publication 15 to stay current with new employer's tax responsibilities for withholding, depositing, reporting, and paying employment taxes.
Here's also a handy guide for setting up and using your QuickBooks Desktop Payroll. This contains all the essential info you need to get started with payroll tasks, from paying employees to taking care of taxes.
I'll be right here to continue helping if you have any other concerns or further questions. I hope you'll have a great time navigating QuickBooks.