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Lesli A
Level 3

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I can't believe how long this has been going on!!  I now have ONE VERY ANGRY employee because I was told 6 months ago that I had to figure out his tax, BY HAND, based on tax table publications (which by the way I pay YOU for these tax tables so it should be done for me) and I did not figure out enough. You keep saying "threshold", when you are talking about the Standard Deduction. We have ALWAYS had a Standard Deduction, but that deduction doesn't come into play until the employee does their tax returns at the end of the year!!! Your tax tables for the new W4 are not allowing any tax to be taken out until they've reached the Standard Deduction!! This never happened before on the old W4's.. That deduction before 2019 was 24,400. The way you are doing this for the new W4, forces employees to get used to a certain dollar amount on their paychecks, and then when they reach the "threshold" standard deduction, they suddenly get tax taken out, and their paychecks, that they were used to getting, suddenly decrease, and they are scrambling to pay their bills!!!  You have GOT to change this!!! The only change the IRS made was they increased the Standard Deduction but took away the exemption for the employee and their spouse. That was done on the tax returns...  Not one single person filing tax returns, in my entire life, has paid tax on the first Standard Deduction plus exemptions for themselves, spouse and children. You still need to have tax withheld from your paychecks, some people have interest income or other investment income they have to cover for also!!!

 

P.S. Anybody who makes more than the standard deduction is going to pay taxes, but they would much rather spread those taxes out over the whole year, not try to condense collecting them into a six month time period. I am looking at a W4 right now and it does not say ANYWHERE not to withhold tax until they reach the standard deduction amount, or "threshold" as your customer support people keep calling it. This was taken from the IRS website: 

There is no threshold amount for withholding taxes from an employee's wages. As an employer, you're responsible for withholding taxes on every employee's wages from day one based on the information the employee provides to you on Form W-4. However, there is an income threshold that employees must reach before they are required to file federal and state tax returns.

This "threshold" your people keep talking about only has to do with when the employee is required to file tax returns. You, QB, do not know what that employee has for other income than just a paycheck, so you need to only worry about taking taxes out and let that employee worry about what they get refunded at the end of the year or if they owe more.

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