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Faye Rodgers
Active Member

Payroll additional tax deductions

I have an employee that works for me and this is a second job for her.  She is currently paying into federal and provincial taxes through her full time job so she does not have these deducted from he wages with me.  She has requested from me to have additional taxes withheld from her wages.  Do I entered that in the field of additional taxes  but put the federal and provincial to zero.

 

Once that is done an I do her payroll where will it show on her paystub.  I tried today to see where the deductions show and I am not seeing where that is being done unless I am looking in the wrong place on the pay stub.

 

Thank You

 

Faye

1 Comment 1
Jayson_E
QuickBooks Team

Payroll additional tax deductions

Hi Faye, you’re spot on. To get this working, you’ll want to enter that extra amount in the Additional Tax field and set both the Federal and Provincial Total claim amounts to 0.00.

 

Setting those claims to zero is the key. It tells QuickBooks she’s already using her tax credits at her other job, so the system knows to start taxing her right away instead of waiting for her to hit an earnings threshold.

 

The reason you're not seeing it on their paystub is that the Additional Tax doesn't have its own separate line. Instead, it bundles into the Federal Tax (or Income Tax) and Provincial Tax totals. That's why you weren't seeing it as a distinct deduction.

 

To verify if it worked, during Review & Create Paychecks, when processing their payroll, click Open Paycheck Detail Employee Summary section. The total tax withheld should match your Additional Tax amount + any system-calculated tax (now active with zero claims).

 

Feel free to add a comment below if you have any questions about this.

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