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Navigator72
February 15, 2020
Solved

What is the purpose of Extra Withholding under the State section of the Employee Taxes?

  • February 15, 2020
  • 1 reply
  • 0 views

In setting up Employees, there is a field on the State Taxes tab for Extra Withholding. What is the purpose? Why is it here rather than at the Federal level?

Best answer by JonpriL

Hello @Navigator72,

 

Extra Withholding is used to enter an additional amount for employee taxes aside from the total withholding taxes. So a smaller amount of taxes throughout the year is taken out, rather than a larger tax return at the end of the year. You can enter an extra withholding amount of taxes for your employees in both state and federal taxes.

In case you need some ideas and best practices to follow in managing your payroll transactions, you can always visit our Employees and Payroll Taxes articles for reference.

 

You can touch base with me here for all of your QuickBooks needs, I'm always happy to help. Thanks for dropping by.

1 reply

J
JonpriLAnswer
February 15, 2020

Hello @Navigator72,

 

Extra Withholding is used to enter an additional amount for employee taxes aside from the total withholding taxes. So a smaller amount of taxes throughout the year is taken out, rather than a larger tax return at the end of the year. You can enter an extra withholding amount of taxes for your employees in both state and federal taxes.

In case you need some ideas and best practices to follow in managing your payroll transactions, you can always visit our Employees and Payroll Taxes articles for reference.

 

You can touch base with me here for all of your QuickBooks needs, I'm always happy to help. Thanks for dropping by.

    K
    konjoian
    February 20, 2020

    I have an employee who would like us to take out additional taxes from his check during the year. I am on quickbooks on line. When I put in an amount on the Extra Withholding it doesn't take any additional out and how do I designate how much to state and how much to federal?

    K
    Kendra H
    February 20, 2020

    Hello, @konjoian.

     

    I hope your day is going well. I'd be glad to assist you with where to put those extra withholdings at in QuickBooks Online.

     

    You can go to the employee's profile and add those extra withholding's there.

     

    Here's how:

    1. In the left-hand menu, hover over the Workers tab and choose Employees option.
    2. Locate the employee and select the Pencil icon beside of Pay.
    3. In the second box "What are (customer's name) withholding's?", click on the Pencil icon.
    4. In the bottom right, there's an option "4c. Extra withholding" this is where you'll put those additional taxes.
    5. When you're ready, choose Done.

    Also, for more information about pay types and deductions, refer back to this article: Supported pay types and deductions explained

     

    If you have any more questions or concerns, I'm only a few clicks away. Have a safe and productive rest of your day!

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