Employees → Taxes → Federal tab

Federal Income Tax is a tax on annual earnings for individuals, businesses, and other legal entities. All wages, salaries, cash gifts from the organization, business income, tips, gambling income, bonuses, and unemployment benefits can all be subject to Federal Income Tax.

💡 Federal Income Tax and Federal Withholding are two terms that can be used interchangeably.

The calculation occurs based on the employee’s completion of the W-4. Click here for the current W-4 published by the IRS. If W-4 information has not been entered, the Heartland Payroll system will default the filing status option to Single or Married Filing Separately per the IRS standards, ensuring the maximum amount is taken from the employee to provide to the federal agency.

In the W-4 below, you can see the sections to be completed and how they correlate to the Heartland Payroll system. Review these individual fields and enter them into the corresponding fields in the payroll system. 

On the Federal tab, enter the amounts exactly as the employee completed. If a field doesn’t appear accurate, contact the employee directly to verify. Heartland cannot advise your employees on completing their W-4.

(Continue in Federal Tax: Additional Amount(s) to Federal Income Tax)