How can I deduct an extra amount of federal income tax from an employees pay?
A lump sum can be withheld by setting up a special code on the employee master file. For the field SPECIAL FEDERAL INCOME TAX CODE, select A for “additional” to withhold a specified amount in addition to the amount withheld according to the payroll tax tables. Or select S for “substitute” to withhold a different amount than what is calculated according to the payroll tax tables. In the field SPECIAL FEDERAL INCOME TAX AMOUNT, enter the amount of additional or substitute tax to be withheld.
