There is a new W4-P form this year(2022) for pension payments that factors amounts based on multiple sources of income or dependents, Anyone having issues with tax amounts not matching the IRS tax table? We are referring to the 2022 Percentage Method table on page 10 of the IRS publication 15-T(2022) for comparison. We use BSI TaxFactory 11.0 and not sure if we are missing something on PR29 or PR13 for this change. We have our retirees on a separate company as our current employees.
Example: We have a retiree receiving PR29 payments with tax category 70 as "periodic, normal tax tables" and on PR13 they have federal as married filing jointly. It is taking the annual salary and putting it in a range and taking 10% of the total annual salary. For annual pension amount of $35260.92 it is taking a flat 10% of that total and dividing monthly for our tax amount. It seems like it is using the W-4R(non periodic table) tax table for 2022 instead of the W-4P tax table.
Anyone else encounter this and have a idea?
