Can I believe QB would calculate correctly payroll taxes (FICA) with the information only I input according to QB's requirements for new foreigner employees?

Hello there, ian25,

QuickBooks Online is compliant with the Internal Revenue Service. The payroll taxes will automatically calculate after you've set them up in QuickBooks.

For Federal Income Tax and State Income Tax, amount calculations are determined by the following:

• agency's wage and tax calculation table
• employee's filing status, number of allowances, or extra withholding amount in the employee setup
• pre-tax deduction items included on the paycheck
• changes in pay frequency
• creating a paycheck with wages that has lesser or larger amount than what the employee normally gets in a pay period

Check out these articles for reference:

•  Payroll tax wage bases and limits
• 2020 state payroll tax changes
• Enter or change state unemployment insurance (SUI) tax rates
• IRS Publication 15 (Circular E)

Let me know if you have other questions.

I found that QB did not do the FICA calculation for our two (2) foreigner employees in right way.

One of our employees was a Canadian who started working on 10/15/2019 and laid off last 3/24/2020.

He had an F-1 visa, so he had to be exempt from FICA taxes, but QB kept it off.

Meanwhile there is an Irish employee, who had to pay FICA taxes because he has an H1B visa, but QB didn't take off FICA taxes from his payrolls.

So far I believed QB are calculating all the payroll taxes well once I input the information QB required me.

These two employees' payroll taxes should be recalculated and reported to the IRS accordingly.
The Canadian guy has to get refund already-paid taxes from IRS while the Irish employee has to pay what he didn't pay since he joined our company on 11/1/2019.

We will have to issue a corrected W-2C in 2019 to both employees.
How can QB help me with these matters?

Also, 1st Quarter 941 should be reported by 4/28 right now but it should be corrected before submitting, so I would appreciate it if QB can help me in a hurry.

Regards,
Ian

I found that QB did not do the FICA calculation for our two (2) foreigner employees in right way.

One of our employees was a Canadian who started working on 10/15/2019 and laid off last 3/24/2020.

He had an F-1 visa, so he had to be exempt from FICA taxes, but QB kept it off.

Meanwhile there is an Irish employee, who had to pay FICA taxes because he has an H1B visa, but QB didn't take off FICA taxes from his payrolls.

So far I believed QB are calculating all the payroll taxes well once I input the information QB required me.

These two employees' payroll taxes should be recalculated and reported to the IRS accordingly.
The Canadian guy has to get refund already-paid taxes from IRS while the Irish employee has to pay what he didn't pay since he joined our company on 11/1/2019.
We will have to issue a corrected W-2C in 2019 to both employees.
How can QB help me with these matters?

Also, 1st Quarter 941 should be reported by 4/28 right now but it should be corrected before submitting, so I would appreciate it if QB can help me in a hurry.

Regards,
Ian

I appreciate the details that you gave, @ian25.

You've got me here to share some details on how to manage foreign employees in QuickBooks Online, so taxes will be calculated automatically.

Once you have a non-U.S. citizen employee, you'll need to make sure that you set their taxes accurately, depending on their visa types. Know that exceptions are made based on an employee's non-immigrant status.

To give you more details about the set up of your employees, you may visit this link attached: Exemption status of foreign employees with particular visa types. This way, you'll be able to make modifications to their taxes so it will be calculated accurately on the succeeding payroll transactions.

On the other hand, to help you with the tax corrections, I suggest contacting our Customer Care Team. They have the tools to review the tax computation and can do the adjustments for you.  

I'm also adding here some great resources that can guide you in running payroll for foreign employee and on how to send a W2-C form in QBO:

• Correct or amend W-2 forms
• Set up Nonresident Alien (NRA) tax withholding for foreign employee

If there's anything else that I can assist you with, let me know. I'm always up for further assistance. Have a great week ahead!