4 (USA) Setting Up IRS Form W-4

This chapter contains the following topics:

4.1 Understanding IRS Form W-4 Setup

Employees can use self-service to enter, review, and revise W-4 forms. (Release 9.2 Update) The IRS Form W-4, Employee's Withholding Allowance for ESS program (P085303A) provides tabs for Name and Address and the IRS Withholding Calculator.

Note:

(Release 9.2 Update) To comply with the changes to IRS Form W-4 with the Tax Cuts and Jobs Act of 2017, the P085303A program points directly to the new version of IRS withholding calculator that will help employees to review withholding allowances. You need to specify the link to the Withholding Calculator on the IRS website in the processing options of the P085303A program.

Employees access the IRS Form W-4, Employee's Withholding Allowance for ESS program by clicking a link on the organization intranet portal. To set up this access, you use the Self-Service Process Flow Setup program (P05400) to create a process flow script. You then link the Self-Service Director program (P05410) version that runs the script to the Web portal. You must set a processing option for the Self-Service Director program that specifies the correct process flow script.

The employee can update name and address information. If the system administrator sets up a link on this form, employees can click the link to display I.R.S. Instructions for the W-4 form. (Release 9.2 Update) The Next and Previous options take the user to the previous or next step that is defined in the Director script. After completing the W-4 form, an employee can print the form.

After changes are made and the employee completes the acceptance form, the system saves the information in the IRS W-4 Form Work File table (F085303W).

(Release9.2 Update) You can also specify a processing option for the telephone number that an employee can use to contact the Social Security Administration to request a name change form.

Note:

JD Edwards EnterpriseOne Human Capital Management Employee Self Service 9.1 system no longer uses P053030 (Work with W-4 form). P085303A (Form W-4 Employee withholding Allowance Certificate) is enhanced Employee Self-Service and only W-4 form used in the Self-Service application.

4.2 Prerequisite

We recommend that you retrieve a copy of the appropriate W-4 form from the I.R.S. The current W-4 form can be obtained from the I.R.S. Web site athttp://www.irs.gov/.

4.3 Creating Director Form Rules for IRS Form W-4

This section provides an overview of the Populate Director Form Rules/Edits report for IRS Form W-4 and discusses how to run the report.

4.3.1 Understanding Director Form Rules for IRS Form W-4

The Populate Director Form Rules/Edits report (R8985500) creates and stores information in the Self-Service Step/Application Cross-Reference (F05402) and Self-Service Script Position Rules (F05403) tables. The Self-Service Process Flow Setup program (P05400) uses these tables to create new process flow scripts. You need to run this report before creating process flow scripts. If your self-service applications were set up before the IRS Form W-4 was available, you need to run this report again. You normally need to run this report only once unless you are setting up access to additional self-service programs after your initial setup.

If you are setting up self-service access to the IRS Form W-4 Employee's Withholding Allowance for ESS program (P085303A) after your initial self-service setup, then you need to run this report again.

To set up the Employee Self-service process for 2020 W-4 changes, from the Self-Service Process Flow Setup program (P05400), navigate to the Process Flow Detail form (W05400D), and select 250 in the Self Service Action Step column.

4.4 Setting Up the Self-Service Form for IRS Form W-4

This section provides an overview of the self-service form for IRS Form W-4 and discusses how to set up the processing options.

4.4.1 Understanding the Self-Service Form for IRS Form W-4

(Release 9.2 Update) The IRS Form W-4, Employee's Withholding Allowance for ESS program (P085303A) is the program that employees use to enter information needed for the IRS W-4 form. The system saves the values that an employee enters for the W-4 form.

The system administrator needs to create a new version of the IRS Form W-4, Employee's Withholding Allowance for ESS program for each tax year. Processing options that define a range of parameters for W-4 information also need to be set for this program. You must use the Application Versions Interactive program (P983051) to create a new version and to set the processing options.

You can set processing options to automatically notify an administrator when employees change Form W-4 information.

4.4.2 Setting Processing Options for IRS Form W-4, Employee's Withholding Allowance for ESS (P085303A)

Processing options enable you to specify the default processing for programs and reports.

4.4.2.1 Year

Use this processing option to specify date and pay period information.

1. Enter the calendar year for the W-4

Specify the calendar year for which the W-4 information is effective. Enter a four digit number for the year.

2. Enter the number of pay periods per year

Specify the number of pay periods that exist for your company in one calendar year.

4.4.2.2 SSA Phone

Use this processing option to display the contact telephone number for the Social Security Administration.

1. Phone number to contact the Social Security Administration to request a name change form

Specify the number without the prefix or special characters, such as hyphens or periods, that makes up the telephone number for an entity. You can use any applicable telephone number format for a country. This field is used in conjunction with the Prefix field, where you enter the first segment of the telephone number, which is called the area code in the United States.

When you search for an address using a phone number, you must enter the number exactly as it is set up in the Address Book system, including any special characters.

Enter a phone number with area code.

4.4.2.3 Process

Use these processing options to specify default processes for printing and notification.

1. Notify the administrator that the employee has made changes to his/her W-4 Withholding Information

Specify whether an administrator receives notification. Values are:

0: Do not send notification.

1: Send notification.

2. Enter the address book number of the administrator to be notified

Specify the address book number of the administrator who should be notified when employees make changes to their W-4 information.

3. IRS Withholding Calculator URL Link (Release 9.2 Update)

Specify the URL for the IRS Withholding Calculator in order to complete the W-4 form. Enter the URL as https://www.irs.gov/individuals/irs-withholding-calculator. The results from this calculator help you complete the Form W-4 that is applicable from the year 2018.

4.5 Creating a Self-Service Process Flow Script for IRS Form W-4

This section provides an overview of a self-service process flow script for IRS Form W-4 and discusses how to set up the form.

4.5.1 Understanding a Self-Service Process Flow Script for IRS Form W-4

You use the Self Service Process Flow Setup program (P05400) to create a script that includes the IRS Form W-4, Employee's Withholding Allowance for ESS program(P085303A). You need to observe this requirement regarding the placement of this program in the script: the IRS Form W-4, Employee's Withholding Allowance for ESS program must appear in the script prior to the Acceptance Form program (P085564). This requirement corresponds to one of the rules that you generated by running the Populate Director Form Rules/Edits report (R8985500): P085564 - Self Service Action Step 170. To include the IRS Form W-4, Employee's Withholding Allowance for ESS program, add step 250 in the desired script.

4.6 Revising the IRS W-4 Form Workfile

This section provides an overview of revising the IRS W-4 Form Workfile and discusses how to input revisions.

4.6.1 Understanding the IRS W-4 Form Workfile

After you have run the Personal Employee Information Workfile Build program (R054101) and created the IRS W-4 Form Work File table (F085303W), a system administrator can use the IRS W-4 Form Work File Revisions program (P085303W) to review or change updated employee information. The IRS W-4 Form Work File is the live (permanent) table that stores the temporary information from the IRS Form W-4, Employee's Withholding Certificate table (F053030).

When reviewing employee information, the system administrator can perform any of these actions:

  • Approve the records

  • Reject the records

  • Reset the records to a pending status

4.6.2 Forms Used to Review or Update the IRS W-4 Form Workfile

Form Name FormID Navigation Usage
IRS W-4 Form Work File Revisions W085303WA Use the Fast Path and enter P085303W. Select a record to review.

When finished with review and input, complete the update tracking fields.


4.6.3 Reviewing and Updating the IRS W-4 Form Workfile

Access the IRS W-4 Form Work file Revisions form.

To revise the IRS W-4 Form workfile:

  1. On I.R.S. W-4 Form Work File Revisions, select one of these options and then click Find:

    • Approved Records

    • Pending Records

    • Needing W-4 to be Printed

    • All Records

  2. Review these fields and enter corrections as necessary:

    • Address Number

    • Date Employee Updated

    • Time Employee Updated

    • Calendar Year

    • No. Allow

    • Exempt Flag

    • Mar Stat

    • Name Chg

    • Additional Federal Withholding

    • Multiple Job Flag

    • Claim Dependent 1

    • Claim Dependent 2

    • Total Claim Dependent

    • Other Income

    • Deductions

    • Action Flag

  3. Review these fields that cannot be changed:

    • Status

    • Appr By

    • Date Approved

    • Electronic Signature ID

    • User ID

    • Program ID

    • Work Stn ID

    • Updated By

    • Date Updated

    • Time Updated

  4. When the review is complete and you are ready to complete the action, complete the Address Number field.

  5. Select the desired records.

  6. Select an appropriate action from the Row menu.

  7. Click OK.

    • Approved Records

      Enter an option that specifies the type of processing for an event.

    • Pending Records

      Enter an option that specifies the type of processing for an event.

    • Needing W-4 to be Printed

      Enter an option that specifies the type of processing for an event.

    • All Records

      Select an option (radio button) that specifies the type of processing for an event.

    • Date Employee Updated

      No entry required. Date that the object was updated.

    • Time Employee Updated

      No entry required. Time that object was updated.

    • No. Allow

      Enter the total number of allowances claimed on IRS Form W-4

    • Exempt Flag

      Select a flag to indicate that an employee is claiming exemption from withholding of taxes on IRS Form W-4. To claim exemption, an employee has to meet all conditions listed on Form W-4.

    • Mar Stat

      Enter a code that represents the marital status of an employee. This code is required by IRS Form W-4.

    • Name Chg

      Select a flag, when set, that indicates the last name is different from that on the social security card. Values are:

      Blank: Name is same

      1: Name is same

    • Additional Federal Withholding

      Enter an additional amount to be withheld from each paycheck. This value may be calculated using the worksheets in IRS Form W-4.

    • Multiple Job Flag

      The flag when set indicates that only two jobs exist for the employee.

      This option is applicable for jobs with similar pay. If the option is not set, and is populated with the default value 1, excess tax may be withheld than necessary.

    • Claim Dependent 1

      Enter the amount generated by multiplying the number of qualifying children under the age of 17 by $2,000.

    • Claim Dependent 2

      Enter the amount generated by multiplying the number of dependents who are not qualifying children under the age of 17 by $500.

    • Total Claim Dependent

      Enter the total amount in the Claim Dependents section.

    • Other Income

      Enter the other income. This amount is entered for a year for which an employee does not expect any withholding on income.

    • Deductions

      Enter the deductions. Deductions an employee expects other than the standard deduction in a year.

    • Action Flag

      Enter a value that defines the type of change that will be made to a record. This flag is used by the system in subsequent record processing.

    • Status

      Enter a user defined name or remark. To enter information, you must use the Accepted or Mistaken Appr options from the Row menu.

    • Appr By

      Enter the initials of the person approving the spending account claim. To enter information, you must use the Accepted or Mistaken Appr options from the Row menu.

    • Date Approved

      Enter a date for which a change was approved. To enter information, you must use the Accepted or Mistaken Appr options from the Row menu.

4.7 Setting Up URLs for IRS Form W-4

This section provides an overview of Setting Up URLs for IRS Form W-4 and discusses how to create web links for this form.

4.7.1 Understanding URLs for IRS Form W-4 Setup

Within the employee self-service benefit programs, including the IRS Form W-4, Employee's Withholding Allowance for ESS program (P085303A), employees can click an optional link to get information directly from the IRS. You can provide separate links to desired resource Web sites. The current values for these links are as follows:

If UDC codes do not already exist for the URL descriptions, they can be added to UDC 08/UT. These values are suggested:

New Y/N Value Description Description 2 Hard Coded Y/N Special Handling Code
Y IRS I.R.S. Homepage Blank Y Blank
Y IRF I.R.S. Forms Blank Y Blank
Y IRP I.R.S. Publications Blank Y Blank

You use the Benefits Enrollment Plan/Option URL Address program (P085540) to assign the URL addresses. Although the URL specifications can potentially be implemented from more than one of the benefits setup programs, we recommend that you use the Categories By Benefit Group program (P08350) to assign URL addresses for the IRS website.

4.8 Printing Employee W-4 Form

In the Work With Web Mail Merge Templates form (P05WMMWB), add a template with these specifications:

Name: 2020W4

Description IRS Form: W-4 2020

Data Structure: D0500170A

Address Book Field: 41

Output Queue: Select appropriate media object queue.

Start delimiter: Tilde (~)

End delimiter: Tilde (~)

After saving the entries, reselect the P05WMMWB form and select form exit Generate DS.

To print the employee W-4 form:

On the IRS W-4 Form Work File Revisions Form (P085303W), select the row that needs to be printed. Click Row Exit and select "Print Form W-4" for printing 2020 W-4 and select "Print Pre 2020 W4" for printing W4 forms prior to 2020.

The employee W-4 form is generated with the employee details.

4.9 Saving Employee W-4 Information

This section provides an overview of the Budget Worksheet report and discusses how to:

  • Run the Update Employee W-4 Information to Live Tables report

  • Set processing options for the Update Employee W-4 Information to Live Tables report

4.9.1 Understanding the Update Employee W-4 Information to Live Tables report

You use the Update Employee W-4 Form Information to Live Tables program (R0855303) to transfer the W-4 information from the F085303W into the F053030 and F06017 tables for the selected employees.

A processing option allows you to run the batch program in proof mode to see any potential problems or in final mode to actually update the tables. You can use a second processing option to select whether you want to update only the F053030 table or the F053030 and F06017 tables. The system administrator can select whether to approve records while they are in the IRS W-4 Form Work File or wait until records are moved to the F053030 table.

If the Files to Update processing option is set to 0, the system moves both approved and unapproved records to the IRS Form W-4, Employee's Withholding Certificate table. The system administrator can then approve or reject the unprocessed records. If the Files to Update processing option is set to 1, and a tax year is set in the Tax Year processing option, then the system moves only approved records into the F053030 and F06017 tables.

4.9.2 Running the Update Employee W-4 Information to Live Tables report

Enter BV or P98305W in the Fast Path so you can access the processing options.

4.9.3 Setting Processing Options for Update Employee W-4 Form Information to Live Tables (R0855303)

Processing options enable you to specify the default processing for programs and reports.

4.9.3.1 Process

1. Mode:

Specify the mode in which the report is run.

0: Proof

1: Final

2. Files to update:

Specify the tables in which the system stores information.

0: Add records only to F053030.

1: Add approved records to F06017 and F053030.

Only approved records are added to the F06017.

3. Tax Year:

Specify a four-digit calendar year.

4. Employee Master Updates

Specify the fields that the batch program updates in the Employee Master table (F060116). Values are:

0 or Blank: Do not update the F060116 table.

1: Update only the Tax Method field for tax exempt status.

2: Update only the Federal Marital Status field.

3: Update both the Federal Marital Status and the Tax Method fields in the F060116 table.

To ensure that the system updates the Employee Master table, set the Files to update processing option to 1.

If you select options 1 or 3 and the employee selects the tax exempt check boxes, the system updates the value in the Tax Method field of the employee master record to the value provided in processing option 5. If there is no value provided in processing option 5, the default value of 2 will be updated. If the employee leaves the tax exempt check boxes blank to indicate no exemptions, the system clears the Tax Method field for any previous value. The report displays a message specifying the updated value in the Tax Method field.

If the marital status changes, this program updates only the federal marital status, not the fields for state and local marital status. To change the state and local marital status, employees must contact their human resources department or submit the appropriate state and local withholding certificate.

5. Tax Method to be updated in employee master

Enter the tax method to be updated in the employee master. If you leave this field blank, the system updates the value of 2.

4.9.4 Setting Back Office Application for IRS Form W-4:

The back office application can be used to enter, review, and revise employee W-4 Forms. Access to this application should be restricted to human resource administrators.

The back office application has been updated as part of the W-4 changes for the year 2020. After changes are made in the W-4 Form, the system saves the information in the IRS Form W-4 Employee's Withholding Certificate (F053030).

Note:

For 2020 and later years, enter the revision year as 2020 in the Tax Overrides Application (P060120).

Use the program Work With Form W-4 (P053030A) to create or update the employee W-4 form. After creating the W-4 Form for the employee, the HR administrator needs to access the employee master program (P0801), select the Tax Overrides application (P060120), and enter the required details.

For more information

For information about the federal marital status for 2020 w-4