The solution I was told is to divide the dependent dollar amount by number of paychecks and enter that number in step 3. (2 dependents = $4000/52 paychecks = $76.92)

Is there a way I can check that my W-4 is correct? I want to make sure I am still claiming 0

Why cant we get a straight answer on this, do we put the Dollar amount or the number of dependents in this spot, either 2.00 or $3,000 which is it!!!!!!!!!!!!!

Hello, @Costless Carpet.

I'll share some information about entering the dependent's dollar amount. In QuickBooks, you don't have to enter the dollar ($) symbol. In your example, you can choose 2.00.

You may also want to scroll up to @GarlynGay's post for the detailed steps (for QuickBooks Desktop).

Additionally, here are some of the handy articles to guide you along:

• Enter federal Form W-4 in QuickBooks Payroll.
• FAQs on the 2020 Form W-4.
• View all help for QuickBooks Desktop Payroll.

With the above recommendation, you should be able to enter the dependents amount accordingly. Please don't hesitate to reply anytime if you have follow-up questions or concerns about payroll or Form W-4. I'm more than happy to assist you. Take care and have a good one.

I had a hard time getting an answer when I first started using these new W4's.  I finally found you are to enter the dollar amount - If someone claims under 17 - then it is that number times $2000 all others are $500

For example I have an employee who claimed 4 children and then 1 other dependents

Here is how his info is entered

Claim dependents - 4,500

I hope this helps.. 

Hi~  You put the $ Dollar amount.  I did get a good Q.Bks rep who explained it nicely.  I was having a problem with the landscape employee who @ $25/hr /head of household 3 exemptions and the Q.Bks system one day took out a reasonable Fed/min State and I could see trouble down the line for his 2023 tax prep. 

The rep says that the $6,000.00 for exemptions in this system means that no taxes are being deducted until after $6,000.00 has been earned.  Then the calculator starts deducting.  Hope this helps.  LesBks~

Hi LesBks,

I had employees that started after Jan 2020 that for the entire year had nothing withheld...even after they reached the amount of their deduction.  I wish that worked though because I have a LOT of very angry employees that I am dealing with.  

AlyJac1002

I spoke with my employees when I saw it wasnt withholding anything to make sure they were aware (because sadly this generation of workers never look at their pay stubs or keep up with their hours). I figure the reason the gov changed it is 1 they are tired of sending out high refund checks and 2 they love to keep it complicated. This way they also had opportunity to adjust it (just as they had in the past). I also let them know that getting the advance child tax credit throughout the year would effect their refund and that they just should know that. Its a matter of having it now or later. only 1 didnt listen and they wound up owing. ... you can lead a horse to water, but you can make them drink. 

So what is the point of the IRS changing the form if QB doesn't change their format? I don't get it.

I understand why you would think that way, DawnB25.

Please know that we're making sure that QuickBooks is compliant with all IRS regulations. Rest assured, we'll keep the program updated when it comes to inputting the employees' information into the new W4 form.

In addition to this, the payroll tax table provides up-to-date, accurate rates and calculations for federal and supported state taxes. That being said, I suggest downloading the latest tax table each time you run payroll. Doing this will help you stay compliant with the paycheck calculations.

Here's how to check or download the latest tax table.

1. Go to Employees, then select Get Payroll Updates.
2. Click Download Entire Update, then Update. An informational window appears when the download is complete.

To identify if it’s the correct version, see the latest payroll update (22306) as well as the earlier release through this link: Get the latest payroll news and updates.

If your QuickBooks missed the change of the form, I recommend contacting our QuickBooks Desktop Payroll Live Team. They'll check this for you and ask for more details to ensure the format of the form is up-to-date.

You may also visit our Firm of the Future website to see what's new and coming in QuickBooks Desktop. It's a page where our Product Team will post all new updates and features once  implemented and rolled out.

If you need anything else, don't hesitate to comment below. I'm always around to help. May your business grow and bring you prosperity. Best wishes.

I have QBD 2022 and my payroll was just updated. If you understand why I would think that way why isn't it corrected? The new form has been out for 3 years. 

My employee has 1 dependent under 17 and 1 dependent that is 17. He enters $2,500.00. 

What do I put in QB? First off there is no place to enter a dollar amount. The format does not contain a $ therefore I assume it is a number and not a dollar amount.

There is also no place for it to differentiate between a dependent you are able to claim earned income credit for and a dependent over 17 that you cannot. 

@MaryLandT 

So, I have a question.  I saw in another post from last year that if an employee has 3 deductions, $6,000 (as I understand that dollar amount is what is supposed to be entered), that QB's does not start deducting taxes at all until they have earned $6,000.  Is this correct? 

I agree with this statement completely. They are pushing everyone to the online version and have bugs that they cannot fix, or get..we are working on it. 

Hello,

I have an employee that filled out the new W4 with one dependent so I entered $2000 and QuickBooks didn't withhold any funds for his first check. I will be running his second check tomorrow and the test run shows that he will not have any funds withheld again. Does he have to make a certain amount of money before he starts getting funds withheld? I have updated the payroll and that didn't change anything.

Thanks in advance.

Hello there, @RElectric5. 

I have here details to share about your tax withholding concern in QuickBooks Desktop (QBDT). There are several reasons why payroll taxes aren't calculating. Below are the following:
 

• The gross wages of the employee don't meet the minimum threshold.
• The total annual salary exceeds the salary limit.

To ensure that this gets sorted out, I suggest checking your employee's withholding forms and their tax setup in your payroll product.

Let's also make sure your QuickBooks product is in the latest version as well as your tax table.

Moreover, if the paycheck turns yellow before saving, I recommend reverting it. This refreshes your payroll information to calculate the taxes accurately. Let me guide you on how:
 

1. In your QBDT file, open your employee's payroll information.
2. Right-click the name of your employee which is highlighted in yellow.
3. Select Revert Paycheck.

For detailed information, kindly visit: Save or revert paychecks in QuickBooks Desktop Payroll.

Additionally, I'll also share this article that can serve as your reference to learn how to fix incorrect paycheck calculations: Troubleshoot paychecks calculating incorrectly.

Feel free to leave a reply if you require further assistance. The Community team always has your back. Have a good one.

Well no one from QB actually answered the question about "How do I enter the Claim Dependent information if the employee wrote down or typed in $ into QB.

Publication 15-T Federal Income Tax Withholding Methods 2023

For example: Claim Dependent $3000.00.

On the W-4 in Step 3. You have to do the IRS work sheet 1A (percentage method) or Worksheet 2 (Wage bracket method) Step 3 

Step 3. Account for tax credits
3a Enter the amount from Step 3 of the employee’s Form W-4 ............................. 3a $
3b Divide the amount on line 3a by the number of pay periods on line 1b ...................... 3b $
3c Subtract line 3b from line 2a. If zero or less, enter -0- .................................. 3c

So if the W4 form that the employee fills out states $3000.00 divided by how many pay periods/ pay dates and you should get your answer that you need to put in the Claim Dependents area in QB.

I think we were all hoping that QB would just know how many pay periods/ pay dates in the company file and divide it for us. But I guess we need to do our part.

If I am incorrect please let me know and I will very much appreciate your help/reply.

Someone said " I saw in another post from last year that if an employee has 3 deductions, $6000 (as I understand that dollar amount is what is supposed to be entered), that QB's does not start deducting taxes (I think they mean Federal) at all until they have earned $6000.00. Is that correct?"

I wonder if this is per paycheck?

Hello there, @Betty.

I understand your frustration about the Claim Dependent information in QuickBooks Desktop and being able to input the accurate details in w4 for your employees.

In this case, we highly recommend reaching out to your tax advisor on how to track Claim Dependents to ensure the accuracy of all the information entered in employee W4.

Furthermore, the deduction will not be set as $6000 since it always depends on the IRS tax table ug setup. Please visit this link for more insight: https://www.irs.gov/pub/irs-pdf/p15t.pdf.

Let me know if you still have additional concerns. 

Hello,

If the employee has 4 children under 17, you put $8000.00 in the Federal whitholdings field. Do you then put 4 in the state tab for allowances?

Hey there, @JGregory1. 

Thanks for chiming in on this thread. 

With the questions you're asking and to ensure everything is put on the form correctly, I recommend speaking with an accountant. 

They'll be able to give you the best advice for you to properly put this information in the form. 

If you have any other questions, don't hesitate to ask. Have a wonderful day! 

So, what I'm gathering here is that the reps don't even know. This is so frustrating. 

For 3 dependents should I divide $6000 by 52? We are on a weekly schedule. 

So I can see that Quickbooks can not give a straight answer.

Did it work to divide the $ amount by the number of payrolls per year? Like for 3 dependent with a weekly payroll I should divide 6,000 by 52?

If you have the option to use the prior 2020, I would use it.

Quicksbooks no longer hires people that know, and/or answer you. Its all bots.