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Level 1

Can I deduct extra federal income tax from a paycheck?

 
Solved
Best answer October 15, 2018

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QuickBooks Team

Can I deduct extra federal income tax from a paycheck?

Hi suhays1937,

Welcome to the QuickBooks Community!

Yes, here's how you can enter an additional amount for the Federal Income Tax:

  1. On the left panel, click Employees.
  2. Click the employee's name and click the pencil icon next to Pay.
  3. Click the pencil icon under "What are employee's withholdings?".
  4. In the W-4 box, enter the amount under "Additional amount, if any, you want withheld from each paycheck".

Please let me know if you have additional questions. Thanks.

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Highlighted
QuickBooks Team

Can I deduct extra federal income tax from a paycheck?

Hi suhays1937,

Welcome to the QuickBooks Community!

Yes, here's how you can enter an additional amount for the Federal Income Tax:

  1. On the left panel, click Employees.
  2. Click the employee's name and click the pencil icon next to Pay.
  3. Click the pencil icon under "What are employee's withholdings?".
  4. In the W-4 box, enter the amount under "Additional amount, if any, you want withheld from each paycheck".

Please let me know if you have additional questions. Thanks.

View solution in original post

Highlighted
Level 1

Can I deduct extra federal income tax from a paycheck?

Thank You!
Highlighted
QuickBooks Team

Can I deduct extra federal income tax from a paycheck?

Your welcome @suhays1937! Let me know if there's anything else I can help you with.
Highlighted
Level 1

Can I deduct extra federal income tax from a paycheck?

 
Highlighted
Level 1

Can I deduct extra federal income tax from a paycheck?

Is it only federal income tax that an employee can have withheld as an additional amount and not state?  

Highlighted
QuickBooks Team

Can I deduct extra federal income tax from a paycheck?

Thanks for taking the time to reach out to the QuickBooks Community, 6443.

 

I'm here to help provide some insights about the employee's payroll taxes.

 

QuickBooks Online (QBO) is set up to add both Federal and State additional amount that withheld on the employee's paycheck. 

 

 Here's how to enter the state withholding additional amount:

  1. In the left tab, select Workers.
  2. Choose Employees.
  3. Double-click your employee's name.
  4. Click Pay pencil-icon.
  5. Select What are Texas's withholdings? pencil-icon.
  6. Scroll-down to state taxes.
  7. Enter the amount on the Additional amount tab. Capture.PNG
  8. Click Done

Once done, you can review the employee's paycheck to ensure the state withholding an additional amount calculated accurately.

 

For additional reference, you can check this article: Change employee details.

 

That should do it! Fill me in if you have additional questions about the payroll taxes. I'll be around to help. Wishing you and your business continued success.

Highlighted
Level 1

Can I deduct extra federal income tax from a paycheck?

WHAT IF  THE WITHHOLDING AMOUNT IS TO BE 10% OF GROSS PAY, HOW DO YOU ADD AND TRACK IT SO IT SHOWS ON THE 941 FORM?

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QuickBooks Team

Can I deduct extra federal income tax from a paycheck?

Hello @JESS64,

 

In QuickBooks, the calculation of your withholding taxes is based on the IRS' Publication 15 Percentage Method. I can provide more details about this.

 

Withholding taxes are calculated based on your employee's gross pay, pay period, and their number of allowances.

 

I've attached here an article that you may read for more information: Publication 15 Circular E.

 

Don't hesitate to let me know if you have any other concerns. I'll be around to help.

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Level 1

Can I deduct extra federal income tax from a paycheck?

We have an employee who wants 10% withheld. 

Highlighted
Level 1

Can I deduct extra federal income tax from a paycheck?

Or how can I track it to end up on my 941 Form, I have it entered so when I do payroll but it does not show up on my report as withholding.  I can add it manually. . . . it shows up in my reports. 

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Moderator

Can I deduct extra federal income tax from a paycheck?

Thanks for chiming in this conversation, JESS64.

 

I can add some insight about the employee's federal withholding taxes.

 

At Intuit, we do our best to be compliant by the IRS and your state agency. QuickBooks Online correctly calculates taxes according to the IRS tax table. This is to make sure we can avoid any penalties due to a variety of errors and omissions related to withholding.

 

While we are unable to use a fix percentage for federal withholding, you can override the tax amount on the employee's paycheck. Keep in mind that this tax will still be reported on the 941 form even if this was changed. Here's how:

  1. Choose Workers on the left pane.
  2. Select Employees at the top.
  3. Click Run payroll.
  4. Click Continue.
  5. Add the needed details.
  6. Select the Edit icon.
  7. Under Employee taxes, update the Federal Income Tax.
  8. Click OK.
  9. Continue creating the paycheck.

This article will give you information about federal and state taxes: Payroll 101.

 

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That should answer your concern. If you have follow-up questions about QuickBooks Online Payroll, please let me know. I'm always happy to help. Have a good day!

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