Using 2020 and Later W4, but Federal Allowances from previous W4s still showing up with no way to edit?

Hello, I am also having a similar issue.  By using the 2020 and Later section, one of my employees does not have federal taxes taken out, while others (who have the 2019 or later) do.  Was this purely a tax change issue, and not a QB issue?

Thank you.

I'm curious what you did to solve this problem. All of our employees with 2020 and newer w-4still have their federal withholding allowances on the Employee withholding report and no way to edit those in the employee file.   The QB chat person I chatted with for over an hour said this information does still affect their federal withholding as well as the new 2020 w-4 information.   This seems completely wrong.   The new w-4 information should over ride the old.

Hello, BLmahnke. I can help share additional information about how the new 2020 W-4 form impacts your income tax withholding.

In the 2020 W-4, withholding allowances are removed. Instead of claiming withholding allowances to reduce federal income tax withholding, your employees can now claim dependents or other deductions on the form. You can refer to the IRS website for more detailed information: FAQs on the 2020 Form W-4.

You can read through these articles for more detailed information: 

• What’s changing with the Federal W-4?
• Form W-4: Employee withholding allowances.

I'll be around if you have additional questions about W-4 in QBDT.

My question is more of why do the Federal allowances still show up on the report titled Employee Withholding.    Thank you for your help.

Bonnie

Thank you for getting back, BLmahnke.

I'm here to share with you some information about federal allowances and your Employee Withholding report.

The Employee Withholding report displays your employees' information such as dependents, filing status and others including the federal allowances. If you want to exclude some columns from your report. You can go to the Customize Report tab. 

If there are incorrect allowances displayed on the report, you can modify them through the employee's profile. Here's how:

1. Go to the Employees tab, then tap on Employee Center.
2. Select the employee's name, then click on Payroll Info at the left pane.
3. Tap on Taxes, then edit the allowances under the Federal column.
4. Hit OK.

For more hints about handling your employees and reports, you can open these articles:

• Understand reports
• Workers and employees

Once everything is corrected, you're now ready to process payroll with their new withholdings and allowances. For additional tips, you can review the topics from this link: Help on common payroll topics.

If you have any other payroll questions, let me know by adding a comment below. I'm more than happy to help. Have a good one!

The employee in question has a 2020 and later w-4 with 0.00 for his dependents.  Once the newer w-4  is selected, you can no longer adjust the number of federal allowances, yet it still shows that he has 6 in the column Federal Allowances in the report titled Employee Withholding.   

This is not applicable to the 2020 and later W4

It seems like it is only the 'married, filing jointly'. When I change them to 'filing single', it is correct. This is definitely a QB glitch, not user error. It surprised us with a huge tax bill at the end of 2020. 

Hello there, flyingplow.

I'd like to share what I know about the W-4 in 2020 updates.

The number of withholding allowances are removed from the 2020 W-4. With the new tax table update, QuickBooks calculates the federal income tax based on the employee's claim dependents or other deductions on the form.

I've added these articles that you can use to get more information:

• Form W-4: Employee withholding allowances

• Form W-4: Employee filing status

• FAQs on the 2020 Form W-4

You may also get in touch with our support team that can securely check your set up for your employees.

Let me know if you still have questions or clarifications about W-4. I'm always here to help. Have a great day!

My report is showing Federal Allowances on the new forms as well. I've read this entire string and QuickBooks support has not sufficiently, or even partially answered this concern.  This is a huge problem and needs to be addressed by QuickBooks immediately. 

Hi @rgonzalez21, I want you to know that this isn't the experience we want you to go through.

You'll want to contact our Payroll Care Team and work with one of our specialists to pull up your account on file, review it, and make the adjustment needed to edit your payroll information. 

Use this link for the contact details to connect with our team online: Contact Payroll Support.

I'm adding this reference for tips and guides to utilize in preparation for the coming year-end: Complete Certain Tasks in QuickBooks Online Payroll to Prepare for the New Fiscal or Calendar Year.

Don't hesitate to post a reply below if you have other questions or concerns with payroll taxes and forms. I'm always around happy to help. Take care and stay safe

I did some checking on this, and am thinking the withholding amount may be correct even tho the report shows the 6 for the particular employee in questions federal withholding.    Here's how I checked it.   I have two employees that have the same gross wages.  They are both single/married filing separately. On the withholding report, the 2nd employee shows 0 in the federal withholding column and the 1st employee has a 6.     The 2nd employee normally asks for additional withholding out of his paycheck. I changed his additional withholding to match the other employee and ran a mock payroll and their net pay was the same.   So my guess is that the number in the federal withholding column no longer affects the actual withholding amount.      

I've been on the phone with this team for 2:03:38, and they have no idea why it's showing the Federal Allowances and/or how it's affecting payroll for every employer with this issue.  These are Federal Taxes, this should be a #1 priority for Quickbooks and Intuit to correct and put out a solution or a fix in an update. 

Thank you, I'm in the process of performing manual calculations now. I'm hoping it's correct, we shall see.

I just finished looking up a federal withholding calculator online and plugged in the gross pay and the net pay it calculated matched both of the employees I referenced in my recent reply.   So, my guess is when they made the change to 2020 w-4 they did not update the withholding report.  It's as if that column needs to disappear.  Maybe find  a withholding calculator on line and plug in your wage information to see if the actual withholding is correct.    

good luck

Why does this say "Solved"? It is not solved. This remains an issue for many employers! I spent more than 2 hours on the phone yesterday with the Support team referenced in the string and they could not figure it out, they were supposed to email me a resolution but I have yet to receive that email.  

Is there a solution? Spent 2.5 hours on the phone last night with QuickBooks Jerk with no resolution and have searched for answers but only find the problems.

Having correctly inputted the results from the employees 2020 w4 for an employee that makes $23,000 a year quickbooks has failed to withhold any taxes. This particular employee is left with a surprise 2021 tax bill of $3000. This employee files as married.  Most of our employees make very small amounts because they only work one or two days a week.

I did some tinkering around and found that if a employee is married It may be that we as employers need to check the box Two Jobs only (if there are only two jobs total, you may select this box).  It appears that the spouses job is relevant to this particular check box. Checking it seems to withhold at the same rate as single.

Quickbooks, if this is the case please revise this in the next update to say something like: Two Jobs only (if there are only two jobs total in the household, you may select this box. Otherwise you need to include the total of all other income in the household in the below Other income box). 

I think this may solve the federal withholding issue related to the 2020 w-4 issue in quickbooks.I am interested in feedback from both intuit/Quickbooks as well as other employers on this potential solution. I may encourage my employees to increase their Extra withholding for the remainder of this year to catch up on the taxes missing from this first quarter. 

Note: We are a nonprofit and are not required to pay into federal unemployment taxes so that box is correctly unchecked and has nothing to do with the matter at hand.

My question is what do we enter for Claim Dependents in the Taxes section for an employee base on the new W4.  My employee has 2 dependents so he lists $4000.00.   Do I enter $4000?  or 2 for kids?