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Join nowHi @dctotalhealth,
I'm here to provide insight as to why most of your employee's checks go toward excess wages.
Excess wages are gross wages that aren't subject to a tax because one or more employees have reached a wage base limit for that tax. I suggest checking the employee's withholding to see if it was set correctly.
Here's how:
Additional details concerning your query can be found in this article: Verify federal form amounts using payroll reports. It suggests reports you can run within QBO to help verify the amounts showing on your employee's checks.
I'll be around in case you need further assistance. Post a comment below, and I'll be sure to get back to you.
This was very helpful in answering my question! I was able to look at the reports from last year and compare with this year. This allowed me to figure it out!
Thanks again!
Nichole
I am having this same issue for an established employee that is commission only. I have gone into their profile and updated to the 2020 W4 form. The entire second quarter remains showing almost exclusively "excess wages". How can I fix this? Thanks!
Thank you for joining the tread, Cindy.
I can see that Ryan_M had already explained about excess wages and provided steps to verify them. If you've already checked your employee's records using the steps he provided and noticed that they were still incorrect, please have our Support team check this further. They will be able to use a screen-sharing tool to trace the payroll amounts.
Let me know if you have other questions in mind. You can also check out our blogs to see the latest changes or updates in QuickBooks.
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