HOH issues

[RealtaDana]

When I go into the employee information. 

To designate filing status as HOH, I setup the "MAIN" tab and choose single, 0 for exemptions. Then go to the "W-4" tab and check "FORM W4 2020/LATER" box. 

And only the single/married filing separately box option is available!? The HOH option is unavailable to even select? It's weird bc I KNOW I have other employees marked as HOH in this system, not sure if it's in the same client/file as the one I am attempting now BUT I know I have gotten this to work in the past? So what's preventing me from selecting the HOH designation? 

Any help is appreciated! 

Thanks

[RealtaDana]

I just went through that clients employees and there is actually one employee whom I have marked as HOH. so it let me do the HOH designation when I added that employee in JULY of 2021. 

Now trying to add an employee this week, it won't allow me to check HOH???

Is there something I'm missing....

[TaxGuyBill]

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@RealtaDana wrote:

 0 for exemptions. Then go to the "W-4" tab and check "FORM W4 2020/LATER" box

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I don't know what the problem and (and I don't use that program), but the 2020/later W-4 does NOT have "exemptions".  And the pre-2020 (or is it 2018 and before?) does not have Head of Household on the W-4.  So MAYBE entering "exemptions" is messing things up.

So can you try deleting it, and START with the 2020-later W-4 and Head of Household (don't enter exemptions) and go from there? 

Again, I have idea how the program works, but it is possible that entering "exemptions" is messing things up because that does not exist on the 2020/later W-4.  So it might be worth a try.

[RealtaDana]

I appreciate your response! Unfortunately no; the program forces you to add an exemption amount on the main tab of the employee information. It will not allow you to set up accounts and add withholdings and pay types if you don't put in something. So I just put in 0? Maybe there is a magic number I'm not aware of ((As I typed that I thought of the "exempt" status amount being 99, I will try that monday when I get in the office---could be I guess I never tried it)).....I will update if that does work!

Their update to 2020 and later W-4 form was to add a tab in the "employee information" section, labeled "w-4", which you must click the box "w-4 form 2020/later" and THAT tells the program you're using this tabs information NOT the "main" screen information. 

But there are many issues with this. The exemptions need removed from the program completely BUT that would require all companies to update w-4 forms and that's almost impossible for a lot of my clients. Alternatively, that whole section needs turned into a tab and a box created for w-4 form prior to 2020 box needs to be checked when an updated w-4 is not available. 

I'm in no way a software creator, by any means, but the work around for the updated w-4 form is not working. That is one of the things on my list I wish they would update and change. Along with a "notes" tab in employee information (In case anyone reading IS responsible for updating this software-- wink, wink)

 Thanks for making me think. Hopefully 99 will prompt the system? IDK not gonna hold my breath!

[nickeypoo72]

So, we have had tons of issues with that HOH box.  Let me share with you some of our 'tricks':

When you enter a new employee and get to the pay period cycle, use the pull down menu and click on the correct pay period (weekly, biweekly, etc) but DO NOT ENTER OR TAB to the "Maritul Status" field. Instead, use your mouse and click on the "W-4" tab.  Then when you are at this screen you can choose any filing status you want.  When you are finished there, go back to the Main screen and that's where you have to enter the number of exemptions.  (Of course, because the system won't let you out of that screen without it.)  We always enter "0" for federal on all employees with 2020 or newer W4s.  

Now, let me just say however, we have yet to get the correct federal withholding on anyone whom we use the HOH filing status for.  You cannot even view any HOH tax tables from the system utility menu - with the exception being the HOH with second job box checked status.  I have posted questions on this forum, spoke at length with customer service, uninstalled and reinstalled, installed on new computers, etc and it still won't withhold any federal taxes with HOH status.  So, if you have any knowledge on how those tables work, or how you can even view the HOH tax tables in the system utilities menu I'd love to know!  We were told that the IRS told Intuit they had to set it up that way.. whatever that means, I have no clue! 😞 

[TaxGuyBill]

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@nickeypoo72 wrote:

We were told that the IRS told Intuit they had to set it up that way..

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Don't you just love with customer service tells you outright lies?

[RealtaDana]

WOW!!

That's ridiculous! I wonder how long it will be like that...

LOL

[nickeypoo72]

Well, it's been like that for us since 2020 when the new W4's came out and they FINALLY got the program updated with the W4 tab. I tried and tried to explain to them that there is no place to view a HOH tax table - only single and married - UNLESS you check the box for additional job, then they pop up.  But if this is your only job and you don't check the box, there is no withholding taken out.  And if you go back and look at the W4 tab after you exit out of employee screen, you will notice the HOH box is grayed out, even if there is a check mark in it.  

Has your program taken out the correct federal withholding for your HOH employees?  I would be curious to know.

[RealtaDana]

Well, I don't have many who claim HOH and the ones I do have, do not make enough to actually pull Federal tax. So I'm no help, I could make a sample company to check if I have time this weekend I may play around with it a little bit to see if I can get it to pull correctly. 

Don't forget to eat up the dependent amounts they claimed, if any, (for Example: 1 dependents = $2,000) you must calculate the fed w/h based on HOH withholding bracket "standard withholding"/ unless step 2 is check-boxed) and eat up the dependent amounts claimed FIRST, before any federal withholding comes out.

***This is the part that prevents any of my clients employees from actually having any federal withholding--- they are HOH and claiming dependents and the ones I just reviewed real quick will likely never have federal withholding taken out (as they do not get O/T) The most they will make is 40 hours so their max gross is $400 weekly, claiming 1 dependent gives them a $2,000 credit. The max amount of federal withholding that would be due = $4.00 and $4 X 52 weeks= $208.***