Find the Federal Tax Withholding section on an employee's Pay Info tab under Taxes (next to Direct Deposit).

1. You will see a view-only field for Employee Tax Type at the top of the Taxes tab. To update the tax type, go to the Employment Status table on the Job tab. For more information on employee tax types, visit this help guide.

2. You can give employees access to add and edit federal tax withholding information. The withholding information includes:

• Filing Status: Step 1(c) of W-4 Form
  • Single or Married Filing Separately
  • Married Filing Jointly
  • Head of Household
• Work two jobs or spouse works? Step 2 of W-4 Form
• Dependents Amount: Step 3 of W-4 Form
• Other Income: Step 4(a) of W-4 Form
• Deductions Amount: Step 4(b) of W-4 Form
• Extra Withholding amount:Step 4(c) of W-4 Form
  • Extra Withholding type: $ or % 

If the Federal Tax Withholding Filing Status and Exemption Options are incomplete, the employee's filing status sets to Single (zero).

3. The Full Admin user(s) will have access to an additional three fields within the Federal Tax Withholding section:

• Ignore filing status/other adjustments: Check this box to have no federal income tax deducted or a specified dollar amount entered. Wages will still be reported to the IRS for Quarterly returns and W-2 forms.
• FICA Exempt: Check this box* to have no Social Security or Medicare taxes deducted or reported.
• FUTA Exempt: Check this box* to have no federal unemployment taxes deducted or reported.

BambooHR Payroll will take a few actions to ensure accurate federal withholdings for your employees. We will automatically halt employees' Social Security contributions once they hit the wage base limit of $168,800.00, and increase their Medicare taxes by 0.9% once they hit the excess wage of $200,000.00 for the year outlined by the IRS. When the new year begins, we'll automatically start withholding Social Security taxes again and revert Medicare to 1.45%.