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March 22, 2024
Question

An employee that needs to have more taxes withheld from their paycheck. QB is only taking about 8% but it needs to be 20%. His W-4 is correct. Can I manually change it?

  • March 22, 2024
  • 1 reply
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1 reply

March 22, 2024

Hello there, leeann. Ensuring your employees are accurately taxed is crucial, and I'm happy to assist you in resolving any tax discrepancies on your employee paychecks within QuickBooks Online Payroll.

 

When there are discrepancies in the amount of taxes withheld from employees, adjustments must be made to rectify the situation. We can modify the amount from the Other Adjustment section under the Tax Withholding tab.

 

Following the steps below:

 

  1. Go to the Payroll menu and select Employees.
  2. Click the name of the employee, then tap the Edit button from the 

    Tax withholding tab.

  3. Choose either the 2019 or earlier Form w-4 or the 2020 or later Form W-4.
  4. Change the amount in the Extra Withholding field.
  5. Click Save.

 

Once done, the adjustment will apply to your employee's next paycheck.

 

Additionally, here's an article that will help you manage whether your employee-paid taxes are over or under-collected: Handle over-withheld or under-withheld employee-paid taxes.

 

We remain available to provide guidance on employee deductions or address any concerns you may have regarding payroll reports. Rest assured, we're committed to offering the best solutions to assist you. Wishing you a fantastic day ahead.

 

March 25, 2024

The added withholding would make it take taxes on the complete amount, correct?  He only needs to adjust his federal withholding.  Is it possible to adjust it to 20% and not a dollar amount on just the federal portion?

March 25, 2024

 That's correct, Leeann.

 

The extra withholding amount is calculated and added to the employee's Federal Income Tax (FIT). However, it's not possible to withhold an additional amount by percentage. Instead, the system is designed to allow for fixed dollar amounts rather than percentage-based withholding. 

 

 If you want to withhold a specific percentage, you can simply calculate the amount manually and add it as an extra withholding. This ensures that the correct amount is withheld based on the percentage you require.

 

In addition, I've included some articles that are useful when processing your taxes:
 

 

Don't hesitate to revisit this page if you have other payroll concerns. I'm just around to help.