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New W-4s rejects any state withholding allowances that are different in number from Federal allowanc

edited Mar 30, 2022 1:20PM in Human Resources and ELM - PSFT (MOSC) 2 commentsAnswered

We noticed that in new W-4s there is a system rule in place which rejects any state withholding allowances that are different in number from Federal allowances.  Can you help us understand this limitation ?

Especially since tax reform, the federal and state calculations are essentially unrelated.  In order to achieve the correct withholding for the year, likely most folks would need a different number of allowances for federal purposes and state purposes

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