set withholding %

Thank you for reaching out today, @kr090901. I get that you want to establish a specific standard percentage for federal withholding. This option is unavailable as the calculation is based on several factors and I'll be providing the details below.

Withholding calculations must follow IRS and state guidelines. QuickBooks Online Payroll automatically calculates Federal income tax using the IRS's percentage method, based on the employee's gross wages, filing status, and Form W-4 information. Federal withholding amounts may vary throughout the year due to changes in the employee's wages, such as bonuses or additional pay.

Moreover, you can check your employee's W-4 filing status set up and use IRS guidelines for more details.

For reference, refer to this article: Understand how your payroll taxes are calculated.

To maximize the efficiency of your financial processes by collaborating with our Explore Payroll team. They're veterans in the field, known for smoothing out financial operations and offering insights tailored to your business. One click connects you to a more prosperous financial path.

I'd also like to give you this article for additional information in creating your employee's paychecks: Create and run your payroll.

For any further assistance with tax withholding, feel free to reach out. I'm here to help. Have a good day.

@MichaelaS   You did not answer the question.  Did you read the question?

Hi Michaela - The employee's tax advisor specifically told them to request that 15% of every paycheck be deducted for federal withholding.  I feel this should be a request that can be accomplished automatically within the program.  I do not want to have to calculate and update what Quickbooks figures as the federal withholding tax each pay period based on the employee's W-4 and the IRS withholding  guidelines, etc.

There should be an option for a flat rate % to be deducted for federal withholding.  That doesn't seem like it would be too hard to accomplish.  

Is there a way I can accomplish this (flat 15% federal withholding on every paycheck?)

Hi Michaela - I understand IRS withholdings and W-4's, etc., but the employee's tax advisor told them to have 15% deducted from each paycheck and that seems like a reasonable request that should be easy to accommodate automatically without me having to adjust the withholding each paycheck.

How can I accomplish a 15% flat rate withholding each paycheck?

Hey kr090901,

Thank you for reaching out to the QuickBooks Community! I'd be glad to show you the steps to change the amount of extra withholding. Here's how:

1. Go to the Payroll menu and select Employees.
2. Click the name of the employee, then click the Pencil icon beside Pay.
3. Go to Step2 or the part where the employee's withholding or W4 are set up, then click the Pencil icon underneath it.
4. Change the amount in the Extra withholding field.
5. Click Save.

Please check out this article about managing employee details for further guidance: Edit or Change Employee Info in Payroll.

Don't hesitate to let us know if you need more help when working in QuickBooks. We'll make sure everything is sorted outc

@kr090901  RE: I understand IRS withholdings and W-4's, etc., but the employee's tax advisor told them to have 15% deducted from each paycheck and that seems like a reasonable request

While it may seem reasonable, it isn't. Employers are required to withhold federal income tax by following the elections made by each employee on their W-4.

Because there is no way to specify on the W-4 that a flat tax percentage be withheld - there is also no way to specify a flat tax percentage on the employee record in QuickBooks, which would not be compliant with tax law.

@SashaMC  RE: I'd be glad to show you the steps to change the amount of extra withholding. Here's how:

Is that what @kr090901 asked for? No, no it isn't.