I haven't messed with the new W-4's until now.
Say client wishes to reduce total federal withholding for 2021 by $1,100 and is paid monthly, so monthly withholding should be decreased by $100 effective February 28.
W-4 provides a space for additional withholdings per pay period but I do not see a way to directly reduce by $100 per month.
Here is my thought, since client is in the 15% bracket enter $7,333 on line (b) as a yearly deduction.
Will the payroll provider then decrease the expected monthly income by $666.67 (7,333 /11) for the remaining 11 months, and decrease withholding monthly by 15% of that amount which rounds off to $100?
Or if a negative $100 is entered as additional withholding will the payroll provider pick that up as a $100 decrease?
Has anyone here dealt with this?
Am I making any sense?