Part of the stimulus plan for 2009 is embedded in the Federal Withholding Tables (FIT) for 2010.  A change has been made to support withholding from non-resident aliens for 2010.  The 2010 single and married tax tables should have the option “Tax Calculation Uses Annual Exemption Amount” active (checked).  If this option has not been automatically set by your tax table update system, you can manually enable the option by setting your processing date to 2010 and accessing the “Maintain Tax and Information Tables” option.  Select the Tax Tables “01 – Withholding Type”.  Select either the “Federal Tax Withheld – Married” or “Federal Tax Withheld – Single” table and click >Edit.  Check “Tax Calculation Uses Annual Exemption Amount” for both the single and married federal tables.

For any employees that are non-resident aliens, you must set their annual exemption amount on their individual employee records to -$2,050.00 (negative two thousand and fifty dollars).  The full NRA calculation for 2010 will only be enabled for employees that have this exact amount as an exemption.  The exemption amount on each employee can be accessed by setting your system date to 2010 and then selecting “Maintain Employees”.  Select the employee you wish to change and then select “Pay Data and History”.  Next select “2 – Employee Withholding Tables” and highlight the “Federal Withholding” table for the employee.  The “Annual Exemption Amount” is located in the “Pay Data Control” option.  This change is currently only required for tax year 2010.