Hi there, @lisaj406.
With the new changes of Federal W-4, QuickBooks only allows you to enter employee's W-4 information from the 2020 W-4 section. Let me provide additional details about the changes to the W-4.
The new changes are apart of the 2017 Tax Cuts and Jobs Act. The act made it necessary to revise the Federal W-4 form. Here's are some key changes:
- Allowances that were tied to a personal exemption amount are no longer allowed by law.
- The ability for an employee to account for other income from other jobs or additional income is clearly represented leading to a more accurate calculation of withholding tax for the year.
- New filing statuses have been provided.
To enter your employee's W-4 information, you can utilize the 2020 W-4 section and use the most recently submitted Form W-4 of the employee. Then, manually compute the withholding based on the information.
I'm adding this article for more details: What’s changing with the Federal W-4?
You might also want to check out these articles to learn more about withholding allowance:
Please let me know if you need clarification about this, or there's anything else I can do for you. I'll be standing by for your response. Have a great day and keep safe.
