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Level 1

Has anyone entered in a new 2020 W-4 form? No federal tax is being withheld! (not exempt status).

 
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QuickBooks Team

Has anyone entered in a new 2020 W-4 form? No federal tax is being withheld! (not exempt status).

I can help you with this, kacecommunications.

 

Let's make sure to select the correct options upon entering a W-4 to your QuickBooks account. We can enter it again to make sure that it will be successfully saved. 

 

You can follow these steps:

  1. Select Workers from the sidebar menu.
  2. Click the Employees tab.
  3. Choose the name of the employee.
  4. Click Edit ✎ beside Pay.
  5. Make sure to select the 2020 W-4 or later radio button to view the Exempt status.
  6. Hit Update, then enter the employee's W-4 information into the form.
  7. Click Done to save.

To learn more about the changes in the Federal W-4, you can read this article: What’s changing with the Federal W-4?

 

If you have any other concerns or questions about the Federal W-4, don't hesitate to reach out again to us. We'll always have your back.

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Level 1

Has anyone entered in a new 2020 W-4 form? No federal tax is being withheld! (not exempt status).

Same thing happened to me. I input same information into paycheckcity and it should have had federal witholdings based on the old W4 format. My employees dont feel confortable not knowing what should come out. They are not comfortable with no deductions and how do you just pick a figure?

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QuickBooks Team

Has anyone entered in a new 2020 W-4 form? No federal tax is being withheld! (not exempt status).

Hi there, SuzanneB.

 

There are possible reasons why it's not calculating the federal taxes taken out their payroll check in your employees. Please see below listed.

 

  • Annualized salary exceeds the salary limit.

  • The gross wage of the employees are too low.

And, our system calculates the tax based on these factors:

 

  • Taxable wages

  • Number of allowances/dependents

  • Pay frequency

  • Filing status

 

I suggest manually calculate the employee's paycheck, then verify if it matches with QuickBooks Online. To help us compute the exact withholding amount, go through the IRS 2018 Publication 15. Use the Percentage method (page 44-45). This is the same method used by the system to calculate the Federal Withholding.

 

Please let me know if you have other questions. I'm always here to help.

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Level 1

Has anyone entered in a new 2020 W-4 form? No federal tax is being withheld! (not exempt status).

I to have one new employee that the frist week no federal was taken out, the second week it was and the third week nothing. I checked my entries in the w-4 before payroll the second week and thought it was fixed but then again on the 3rd paycheck it took nothing out. This is very confussing to the employee and me as well.

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Moderator

Has anyone entered in a new 2020 W-4 form? No federal tax is being withheld! (not exempt status).

Hi there, Dishop64.

 

I wouldn't like you to come up with that situation. I'll help you as much as I can.

 

I can see that you've been making an effort to check the set up of your new employee. As my colleague shared above, those are the things that we may consider checking why the employee's withholding is not being calculated in QBO. 

 

In your case, I would recommend contacting one of our payroll specialists. I want to make sure that you'll be sorted out as soon as possible. The reason why you'll have to get in touch with them is to further investigate this matter. They have appropriate tools to use for your concern and be able to find out the reason why the paycheck of your new employees is not calculating the federal taxes.

 

Here's how to contact them:

  1. Click the Help icon at the upper-right corner.
  2. Click the Contact Us button.
  3. Enter a brief description of your concern inside the What can we help you with? box. Something like " No federal tax is being withheld".
  4. Click Let's Talk.
  5. In the Choose a way to connect with us page, you can select the any of the following:
  • Start a chat 
  • Get a callback 

 

Due to COVID-19, we have limited support and reduced our support hours too. To make sure we address your concern on time, you can check their work schedule in this article: Support hours and types.

 

Know that I'm always here if you ever need anything else. Stay safe, and be well.

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