Claim Dependents incorrect for all of 2020

I'll help with your question about correcting W4 information in QuickBooks, Angeluh4211.

You need to correct the amount in the Claim Dependents field. Here's how:

1. Go to the Employees Center and double-click the name of the employee. 
2. Proceed to the Payroll Info tab and click Taxes.
3. Change the information in the Claim Dependents field under the Federal tab.
4. Click OK.

If the paychecks are not sent to Direct Deposit, you can delete and recreate them so the taxes will calculate correctly. Make sure to create a backup copy of your company file so can revert the changes just in case you need to do it. Here's an article on how to do it: Back Up Your QuickBooks Desktop Company File.

If they are Direct Deposit transactions, you can create a dummy paycheck to get the correct amount of Federal Withholding that should have been deducted. Then, create a liability adjustment o make sure that your W2s are correct before filing them. Let me share this article as a guide: Adjust Payroll Liabilities In QuickBooks Desktop. 

Let me also share this article on how to print and file your W2s: Print Your W-2 Forms.

Please add a reply below if you still need more help with this. I'd be glad to jump right back and offer my guidance again. 

would I not then have to pay back my employees for over withholding ? 

Would I be able to just go ahead and file the W2s as is and then correct the dependents for paychecks moving forward? 

Hey there, @Angeluh4211. 

Thanks for reaching back out to the Community. Allow me to provide you with some insight into the withholding for your employees. 

Yes, you'll have to pay back your employees for over withholding. However, I recommend consulting with your accountant about whether to correct this before or after sending the W-2's. If you don't have an accountant, don't sweat it. You can use this guide to find one near you. 

When you're ready, here's an article that can help you and your business out: File your W-2 forms. 

I want to make sure all of your concerns are addressed. If you have any other questions, feel free to ask. I'll always be around to lend a helping hand. Have a great day! 

Angeluh4211,

I had the same problem and am looking for answers as well. Were you able to figure anything out? A lot of the QB threads I've read about this haven't been very helpful with how to resolve over-withholding..

If you have any insight you could share from your experience it would be much appreciated!

Thanks!!