Federal Tax Withholding for Employees

How can my employees set up their federal tax withholding information?

Purpose: This help guide will show you how to set up your employees' federal tax withholding information on the Pay Info tab in BambooHR and have it sync to payroll.

Pay Info tab

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
    • Single or Married filing separately,
    • Married filing jointly, or 
    • Head of household.
  • Work two jobs or spouse works?
  • Dependents Amount
  • Other Income
  • Deductions Amount
  • Extra Withholding type: $ or %
  • Extra Withholding amount

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.

*It is your responsibility to understand what would qualify an individual or company from being exempt from these taxes. 

Employees click the "?" button next to Federal Tax Withholding to find a link to the IRS Tax Withholding Estimator if they need help figuring out what to elect. 

Granting access to Federal W-4 Withholding

When setting up an employee access level, the Full Admin user(s) can grant employees View Only, View and Edit, or No Access to Federal W-4 Withholding information.