If an employee wants an extra $300 withheld from USFIT, and an earning code is flagged as Taxable No Withholding, it won't withhold the bracketed tax, but it will withhold the extra $300. This is wrong. Sometimes small bonuses are flagged as taxable no withholding so the employee actually gets something in their check. However, if they have extra withholding, that still comes out. If something is flagged as taxable but don't withhold anything, that means don't withhold ANYTHING.

by: Paralea B. | over a year ago | Payroll