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Bing Murphy
Level 1

Setting a fixed state tax deduction

Looking for some help, I have a highly compensated employee who wants to make a fixed state tax withholding payment each payroll (we are weekly) instead of the system generated w/h amount.  His fixed amount is higher than the QB generated amount.  How do I code the state withholding fields to always used the fixed number?  I plugged in the fixed amount in the Extra Withholding field then used 99 in the Allowances box.  Someone told me this would work, but it doesn't.  When the paycheck is created, the state withholding is auto calc'd.  Any ideas?

2 Comments 2
ReyJohn_D
Moderator

Setting a fixed state tax deduction

I can help you handle your state withholding tax in QuickBooks, @Bing Murphy.

 

QuickBooks Desktop will auto-calculate your state tax deduction based on the payroll tax table. Thus, you're unable to set a fixed withholding amount on your end.

 

You can manually override the amount instead when running your payroll. I can walk you through the steps how:

 

  1. Go to the Employees menu, and then choose Pay Employees.
  2. Select the employee name, and then click Open Paycheck Detail.
  3. Navigate through the Employee Summary section.
  4. Look for the state withholding item, and then manually enter the amount.
  5. Click Save & Close.

 

You'll also want to run some payroll reports to review your employees' taxes and other information. Just go to the Reports menu, and then select one from the Employees & Payroll section.

 

Once done, you're now ready to pay and submit your payroll taxes to stay compliant.

 

I'm still up and running to answer any tax or payroll-related questions you may have. I'm here to help you anytime. Have a good one!

stromm
Level 1

Setting a fixed state tax deduction

Thanks for the above information.  Quickbooks used to handle this automatically (Fed withholding still works entering 99 in allowances), why doesn't the state still work? I've used QB for 25+ years and that has worked in the past. That's a hassle having to adjust it each pay period.  Many of my clients have fixed withholding amounts. Intuit, please bring this option back for state withholding!  

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