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FIT not withheld on employee returning from workers comp, then started withholding in new tax year
We have a situation where Federal Income Tax was not withheld from an employee for a period of time.
He went out on Worker’s Comp in January 2025 and returned in September 2025. When he returned in September, he had no federal taxes withheld. This was the case until the December payroll that paid in January 2026 and then it started being taken out again. FIT was withheld for the pay processed in early 2025 before his leave.
We have reviewed all of his tax configuration and no changes have been made since 2021. Can anyone explain what may have caused this to happen?
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