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dctotalhealth
Level 1

I recently set up a paycheck for one of our employees. When I pull up the wage and tax summary report...most of his check is going towards "excess wages" . how to fix?

 
4 Comments 4
Ryan_M
Moderator

I recently set up a paycheck for one of our employees. When I pull up the wage and tax summary report...most of his check is going towards "excess wages" . how to fix?

Hi @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:

 

  1. Highlight the Workers tab. 
  2. Select Employees.
  3. On the employee list, click on the employee in question.
  4. Under the Employee details tab, tap the Pencil icon beside the Pay section.
  5. Hit the Pencil icon under the What are [employee's name] withholdings? section.
  6. Review the information for the employee, and ensure everything's in order. 
  7. When finished, press Done.

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. 

dctotalhealth
Level 1

I recently set up a paycheck for one of our employees. When I pull up the wage and tax summary report...most of his check is going towards "excess wages" . how to fix?

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

CindyJ16
Level 1

I recently set up a paycheck for one of our employees. When I pull up the wage and tax summary report...most of his check is going towards "excess wages" . how to fix?

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!

JessT
Moderator

I recently set up a paycheck for one of our employees. When I pull up the wage and tax summary report...most of his check is going towards "excess wages" . how to fix?

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.

  1. Click on Help and select Contact us.
  2. Enter a summary of the issue in the text box and click Let's talk.
  3. Choose Message an agent or Get a callback.

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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