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stsag_sundfarms-
Level 1

Custom Paychecks

I have a bizarre situation.  We are a S-Corp and a C-corp for the 2 businesses we utilize QB for.   I am wanting to create a "custom" paycheck that has just the taxes I want taken out instead of the usual "figured" amounts per federal and state taxes.  I want this because we are an employee owned farm so we are exempt from all state taxes.  We also utilize the 943 form to pay our federal payroll taxes but quickbooks doesn't have that form built in.  Our accountant said we should be calculating the taxes this way.    Is this possible?  I've spent HOURS on a chat thread with a "specialist" that knew less than me so I'm hoping that this discussion can help me and others.   If not we will be canceling our payroll portion and will be canceling QB next year as it's proven to be less than user friendly.   

1 Comment 1
LieraMarie_A
QuickBooks Team

Custom Paychecks

You've come to the right place to get the answers you're looking for, @stsag_sundfarms-.

 

In QuickBooks Online (QBO) payroll, you can set up each employee exempt from state taxes.

 

Here's how:

  1. Go to the  Payroll menu, then select Employees.
  2. Select the employee's name.
  3. Under Employee Details, click on the pencil icon beside Pay.
  4. Select the pencil icon under the question What are (employee's name) withholdings?
  5. Scroll down until you reach the Tax Exemptions section and select the drop-down arrow.
  6. Select the taxes the employees are exempt from. Select Done.

 

You can also refer to this article for more info: Employee payroll tax exemptions.

 

With regards to Form 943, you'll want to download the form from the IRS website. You can fill in the information needed by running the Tax Liability Report

 

Here's how:

  1. Go to theTaxes menu, and then select Payroll Tax.
  2. Click View your Tax Liability Report.
  3. Modify the date range.
  4. Click Run Report

 

Once done, you can print and send it by mail. You can check out this article to ensure compliance with Federal Tax regulations: Internal Revenue Service Payroll Tax Compliance.

 

You can also check this article about the supported forms in QBO: Pay and file payroll taxes electronically.

 

Please come back and post again if you have further questions about payroll and taxes. I'll be glad to keep helping. Have a great day ahead.

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