- Knowledge Base Categories:
- School Accounting System
- Payroll
FAQ: When calculating a payroll for 2024, why are the additional taxes (and the number of allowances) not being calculated for Iowa SIT?
As you are aware, the Iowa Department of Revenue changed the Iowa W4 form for 2024, and they also changed the way Iowa State Income Tax (SIT) is calculated, depending on if the employee completed an Iowa W4 form using the old or new format.
Within the School Accounting System, the payroll calculation process uses the amount entered into the Total Allowances field (on the Taxes screen in the Employee File) for those employees using the new Iowa W4 format, and for the employees using the old Iowa W4 format, the system uses the corresponding amount as entered for Iowa SIT in the tax table in the Tax File (which is defined by the state as $40 total and is no longer multiplied by the number of allowances).
Also, any additional amount for SIT designated by an employee is only included if the employee completed an Iowa W4 form using the new format. As stipulated by the state, additional amounts for SIT are not to be processed if the employee completed an Iowa W4 form using the old format. If an employee wants to have an additional amount withheld for SIT, the employee must complete the new format of the Iowa W4 form, and then you would need to update the information on the Taxes screen in the Employee File accordingly.
For more information on the specific changes made within the School Accounting System to accommodate the changes with the new format of the Iowa W4 form, click here to access the appropriate FAQ.