Hello there, @saharrison.
QuickBooks Desktop (QBDT) Payroll populates Box 1 of the W2 form by calculating the total wages, tips, bonuses, overtime pay, etc., that are subject to federal income tax. Certain deductions that aren't taxable to federal income tax (i.e., 401(k), pre-tax medical, fringe benefits) can affect this box.
Let's go to the Payroll Item List page and set up a housing exclusion item. Here's how:
- Go to the Lists menu.
- Select Payroll Item List.
- Click the Payroll Item button and select New.
- Follow the on-screen instructions and fill in all the necessary details to complete the process.
- Select Finish.
Once done, add the payroll item to your employee's profile. Then, you can either edit the prev paychecks or create an unscheduled one to implement the update on your employee's W2 forms.
To learn more on how QuickBooks fill in each box and field on the W2 form, I'd recommend checking out this article: W2 form boxes explained.
Let me know if you have follow-up concerns about housing exclusion set up and W2 forms in QuickBooks. I'm just around to help. Take care always.
