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Jul 16, 2020 at 01:33 AM

How to handle IT 161 with IT 210


We have an employee that is claiming “Single with 0 allowances” with a 2019 W-4 in IT210 FED. We received an IRS lock-in letter for:

Filing Status: Head of Household

Form W-4 Step 3: $13,200

Where do I input the lock-in letter values? There are only 2 fields in IT161 at this time for input (filing status and number of allowances). The employee’s W-4 with “Single with 0 allowances” will trump the lock-in letter values in this scenario.

There are 5 new fields in the new 2020 lock-in letters from the IRS:

Withholding Rate

Annual Withholding Reductions (Step 3)

Other Income (Step 4a)

Deductions (Step 4b)

Additional amount to withheld per paycheck (Step 4)

Additionally, when I receive a release of the lock-in letter, I need to be able to revert to the employee’s last W-4 submitted to the company. Therefore, I cannot update the new lock-in letter values into IT210 because I cannot revert to values prior to 2020 if the employee has not submitted a 2020 W-4 form.