Costpoint Online Help

Federal Tab

Use this tab to enter detailed tax withholding and credit information.

Federal

Use the fields in this group box to ensure proper withholding of payroll taxes for employees as indicated by their W-4 forms. When you enter a new record, the federal Filing Status defaults to Single and the federal Exemptions defaults to 0 (zero).

Field Description
Form W-4 Revision Year

Select the version of Form W-4 used by the employee. Valid values are:

  • 2019: Select this option if the most recent W-4 form submitted by the employee is 2019 or its earlier versions.
  • 2020 or greater: Select this option if the employee has submitted the 2020 W-4 form or its succeeding versions.
Federal Filing Status (Step 1c)

From the drop-down list, select the Federal filing status for this employee. Valid options are:

  • Married
  • Single
  • Head of Household
  • Exempt
Total Number of Allowances (Step 5)

Enter the number of allowances/exemptions claimed by the employee on Form W-4. This allowance/exemption is used in the computation of Federal withholding taxes.

Multiple Jobs or Spouse Works (only two jobs total) (W-4 Step 2c check box is selected) If there are only two jobs total, you may select this check box. Do the same on the form W-4 for the other job. This option is accurate for jobs with similar pay; otherwise more tax than necessary may be withheld.
Qualifying Children under 17 (Step 3) Enter the number of qualifying children under 17. (Step 3 of Form W-4)
Other Dependents (Step 3) Enter the number of other dependents. (Step 3 of Form W-4)
Other Tax Credit Amount (Step 3) Enter the number of other tax credit amount such as education tax credits and other foreign tax credits. (Step 3 of Form W-4)
Other Income (not from jobs) Enter the amount of employee's other income. (Step 4a of Form W-4)
Deductions (W-4 Worksheet) Enter the total amount of employee's deductions. (Step 4b of Form W-4)
Extra Withholding per Pay Period

If you want to add to the system-calculated tax-withholding amount, enter that additional amount in this numeric field. This amount is added to the system-calculated amount each pay period.

Override Amount per Pay Period

To override the system-calculated amount and use a different amount for the related tax, enter the amount in this numeric field. Costpoint uses this amount for each pay period.

Override Withholding Percent

To override the system-calculated amount and use a percentage for the related tax, enter the percentage in this numeric field. Costpoint uses this amount each pay period.

Warning: This method is not supported by IRS W-4 and Deltek assumes no liability if it is used.
Disable ESS Federal W-4/Lock-in letter

Select this checkbox to not allow employees to access the Federal W-4 screen in Employee Self Service to change their W-4. If an employee is sent a Lock-in Letter from the IRS, they are not allowed to change their W-4 to withhold a lesser amount.

Subject to

Use this group box to select the Social Security, Medicare, and FUTA liability settings for the employee.

Field Description
FUTA

Select this check box if the employee is subject to Federal Unemployment Tax (FUTA) payroll tax. The default is selected. If an employee is exempt from both Social Security and Medicare tax, the employee is also exempt from FUTA tax. Clear this check box only if FUTA payroll tax must not be accrued for the employee.

Wages exempt from FUTA are tracked on the Manage Payroll Records screen and stored in the Manage Employee Earnings History screen in Costpoint Payroll. When employees are designated as FUTA Exempt, their total wage amount automatically displays in the FUTA group box on the Manage Payroll Records screen when you execute the Compute Payroll screen. Costpoint subtracts non-FUTA accruals from total wages when computing FUTA-eligible wages for computation of FUTA amounts and presentation of FUTA-eligible wages on payroll reports.

Medicare

Select this check box if the employee is subject to Medicare payroll tax. The default is selected. Clear this check box only if Medicare payroll tax must not be withheld and accrued for the employee.

Wages exempt from Medicare are tracked in the Employee Payroll table (Payroll Edit table) and stored in the Manage Employee Earnings History screen in Costpoint Payroll. When employees are designated as Medicare Exempt, their total wage amount automatically displays in the Gross to Taxable Pay Reconciliation group box on the Manage Payroll Records screen when you execute the Compute Payroll screen. Costpoint subtracts non-Medicare earnings amounts from total wages when computing Medicare-eligible wages for computation of Medicare amounts and presentation of Medicare-eligible wages on payroll reports.

Social Security

Select this check box if the employee is subject to Social Security payroll tax. The default is checked. Clear this check box only if Social Security payroll tax must not be withheld and accrued for the employee.

Wages exempt from Social Security are tracked in the Employee Payroll table (Payroll Edit table) and stored in the Manage Employee Earnings History screen in Costpoint Payroll. When employees are designated as Social Security Exempt, their total wage amount automatically displays in the Gross to Taxable Pay Reconciliation group box on the Manage Payroll Records screen when you execute the Compute Payroll screen. Costpoint subtracts non-Social Security earnings amounts from total wages when computing Social Security-eligible wages for computation of Social Security amounts and presentation of Social Security-eligible wages on payroll reports.

Employer Subject to Social Security Accrual via Recompute Taxable Wages

Use this check box in conjunction with the Social Security check box in the Subject to group box to comply with the presidential memorandum signed 8/8/2020 which mandates a deferral of the employee portion of Social Security tax for compensation paid to employees whose biweekly pretax compensation generally is less than $4,000.

If an employee is subject to deferral of their Social Security withholding under the memorandum, but the employer is still responsible for their portion of the Social Security tax, this screen should be set up as follows:

  1. Clear the Social Security check box in the Subject To group box. This suspends the computation of both the employee Social Security withholding tax and the employer Social Security tax liability on the Compute Payroll screen.
  2. Select the Employer Subject to Accrual via Recompute Taxable Wages check box. This indicates that the employer is still liable for their portion of the Social Security taxes while the employee's Social Security Withholding is in a deferred status from 09/01/2020 through 12/31/2020. If an employee's Employer Subject to Accrual via Recompute Taxable Wages check box is selected on Manage Employee Taxes screen and the check date falls within the 9/1/2020 to 12/31/2020 deferral period, Recompute Taxable Wages application will perform the following:
    • Calculate and populate the Manage Employee Earning History record with the employer's Social Security taxable wages.
    • Calculate and populate the Manage Employee Earning History record with the employer's Social Security tax accrual amount.
    • Calculate and populate the Manage Employee Earnings History record with the employee's Social Security taxable wages.

This check box will only be visible if the Social Security check box in the Subject to group box is not selected.

Note: This check box will have no effect on calculations done on the Compute Payroll application. Since the employee's Subject to Social Security check box is not selected, Compute Payroll will calculate an Employee Social Security Withholding and Employer Social Security Accrual of 0.00. If the Employer Subject to Accrual via Recompute Taxable Wages check box is selected, the employer Social Security accrual will be calculated after posting payroll when Recompute Taxable Wages is run.