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leeann-elias-arc
Level 1

An employee that needs to have more taxes withheld from their paycheck. QB is only taking about 8% but it needs to be 20%. His W-4 is correct. Can I manually change it?

 
8 Comments 8
ChristineJoieR
QuickBooks Team

An employee that needs to have more taxes withheld from their paycheck. QB is only taking about 8% but it needs to be 20%. His W-4 is correct. Can I manually change it?

Hello there, leeann. Ensuring your employees are accurately taxed is crucial, and I'm happy to assist you in resolving any tax discrepancies on your employee paychecks within QuickBooks Online Payroll.

 

When there are discrepancies in the amount of taxes withheld from employees, adjustments must be made to rectify the situation. We can modify the amount from the Other Adjustment section under the Tax Withholding tab.

 

Following the steps below:

 

  1. Go to the Payroll menu and select Employees.
  2. Click the name of the employee, then tap the Edit button from the 

    Tax withholding tab.

  3. Choose either the 2019 or earlier Form w-4 or the 2020 or later Form W-4.
  4. Change the amount in the Extra Withholding field.
  5. Click Save.

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Once done, the adjustment will apply to your employee's next paycheck.

 

Additionally, here's an article that will help you manage whether your employee-paid taxes are over or under-collected: Handle over-withheld or under-withheld employee-paid taxes.

 

We remain available to provide guidance on employee deductions or address any concerns you may have regarding payroll reports. Rest assured, we're committed to offering the best solutions to assist you. Wishing you a fantastic day ahead.

 

leeann-elias-arc
Level 1

An employee that needs to have more taxes withheld from their paycheck. QB is only taking about 8% but it needs to be 20%. His W-4 is correct. Can I manually change it?

The added withholding would make it take taxes on the complete amount, correct?  He only needs to adjust his federal withholding.  Is it possible to adjust it to 20% and not a dollar amount on just the federal portion?

LouiseG
QuickBooks Team

An employee that needs to have more taxes withheld from their paycheck. QB is only taking about 8% but it needs to be 20%. His W-4 is correct. Can I manually change it?

 That's correct, Leeann.

 

The extra withholding amount is calculated and added to the employee's Federal Income Tax (FIT). However, it's not possible to withhold an additional amount by percentage. Instead, the system is designed to allow for fixed dollar amounts rather than percentage-based withholding. 

 

 If you want to withhold a specific percentage, you can simply calculate the amount manually and add it as an extra withholding. This ensures that the correct amount is withheld based on the percentage you require.

 

In addition, I've included some articles that are useful when processing your taxes:
 

 

Don't hesitate to revisit this page if you have other payroll concerns. I'm just around to help. 

RLCTreasurer
Level 1

An employee that needs to have more taxes withheld from their paycheck. QB is only taking about 8% but it needs to be 20%. His W-4 is correct. Can I manually change it?

I've followed all the steps, but there is no extra withholding coming out of the next paycheck or when I preview the following month, what else can I try to make sure the extra witholding is actually held per the w4 entry?

MirriamM
Moderator

An employee that needs to have more taxes withheld from their paycheck. QB is only taking about 8% but it needs to be 20%. His W-4 is correct. Can I manually change it?

Hello there, RLCTreasurer.

 

Thanks for joining the thread and following the instructions for adjusting an employee's paycheck.

 

Typically, when an additional withholding is applied to a paycheck, the adjustment should reflect on the employee's next paycheck. However, since it's not appearing on the next paycheck, I suggest contacting our Payroll Support Team. They have the necessary tools to access your account securely and identify the root cause of the issue.

 

To reach them, click the ? Help button at the top-right corner and select Contact Us to talk with a live agent. Ensure to review their support hours to know when agents are available.

 

In the future, if you'd like to generate payroll reports to gain valuable insights about your business and employees, you can refer to this article for detailed instructions: Run payroll reports.

 

If you have any other payroll concerns or questions, please let me know in the comment section, RLCTreasurer. I'm here to assist you further. Have a wonderful day!

Kschwartz3650
Level 1

An employee that needs to have more taxes withheld from their paycheck. QB is only taking about 8% but it needs to be 20%. His W-4 is correct. Can I manually change it?

If the employees paycheck is a different amount every week and they want a percentage taken out, will I have to update this number every week and it will apply to the check correctly? 

Kschwartz3650
Level 1

An employee that needs to have more taxes withheld from their paycheck. QB is only taking about 8% but it needs to be 20%. His W-4 is correct. Can I manually change it?

An employee wants a percentage taken out of their check for withholding. Do I manually calculate this every week and adjust it? Will it update it right away to reflect the change? 

Bryan_M
QuickBooks Team

An employee that needs to have more taxes withheld from their paycheck. QB is only taking about 8% but it needs to be 20%. His W-4 is correct. Can I manually change it?

Thanks for joining this thread, @Kschwartz3650.

 

Currently, the automatic calculation to get the percentage equivalent to employees withholding when processing a check is unavailable in QuickBooks Online (QBO) Payroll.

 

Also, you're correct about manually calculating and adjusting it to get the percentage. Then, you can see the changes in the next paycheck.

 

Additionally, here's an article that will help you manage whether your employee-paid taxes are over or under-collected: Handle over-withheld or under-withheld employee-paid taxes.

 

Let me know if you have additional questions about processing payroll changes by replying to this post. We'll be willing to lend a hand. Keep safe, and have a good one.

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