Federal Tax Withholding

Purpose: This help guide will show you how to set up your employees' Federal Tax Withholding information in BambooHR and have it sync over to TRAXPayroll.

Pay Info Tab

Federal Withholding information can be found on the employee's Pay Info tab under "Taxes."

1. Employees can be given access to add and edit Federal 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
  • Additional Withholding type: Dollar or Percent
  • Additional Withholding Amount: Enter an additional withholding, if needed.

If the Federal Tax Withholding Status and Exemptions are not entered, the employee will be set to Single, zero.

2. Full Admins within BambooHR 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 taken or a specified dollar amount entered. Wages are reported to the IRS.
  • FICA Exempt: Check this box to have no Social Security or Medicare taxes taken or reported.
  • FUTA Exempt: Check this box to have no Federal Unemployment taxes taken or reported.

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

What if I am using Autosync for my TRAXPayroll Information?

If you are using autosync, you will see a view-only field for "Employee Tax Type" at the top of the Taxes tab. The tax type can be updated in the Employment Status table on the Job tab. 

The options include:

  • W2
  • S Corp-2% Shareholder
  • H-1B Visa
  • 1099 - If 1099 is selected, the Federal, State, and State Unemployment Insurance areas of the tax tab will not be shown for the employee. Tax Documents will remain visible.
  • Expatriate.
Granting Access to Federal Tax Withholding Information

When setting up an employee access level, Full Admins will be able to grant employees view, edit, or no access to Federal Withholding information.

What's Next?

Need to see a report of all payroll deductions?

Do you need help adding a non-benefit deductions for an employee?

Need more information on State Tax Withholdings?