When you are setting defaults to be used for all your employees, use this tab to indicate which federal
taxes you want to apply to most employees, whether they are paid by your company (such as FUTA tax) or withheld.
You can make changes to this default information when you set up the individual employees.
When you are adding a new employee or changing information for an existing employee, use this tab to select the federal taxes that apply to the employee and to enter federal withholding information from the employee's Form W-4. Select taxes that are paid by your company for that employee as well as taxes that are withheld from the employee's pay.
To view or print a copy of the Form W-4, choose Employees > Employee Forms > Federal W-4 .
If, on the employee's W-4,
Box 3 is checked "Single"
Box 3 is checked "Married"
Box 3 is checked "Married, but withholding at higher Single
Married using Single Rate
Enter the number of allowances entered in Box 5 on the employee's
Enter the amount entered in Box 6 on the employee's W-4 form.
Medicare and Social Security
Advance Earned Income Credit
Do not check this box. Employers may no longer advance EIC payments by reducing employees' withholding.
Federal Unemployment Tax (FUTA)
For more information on applicable federal withholdings and taxes, go to the Payroll Tax Compliance web site and select the appropriate federal agency.