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Intuit
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2020 state payroll tax changes

Learn about how to file your State W-4s.

With QuickBooks Desktop Payroll, you can file your W-4s and stay compliant. If you live in the following states, you need to update both your state and federal W-4s:

  • Colorado
  • Nebraska
  • North Dakota
  • Oregon

You will not see an error message telling you to update your W-4s. Come tax time, you’ll find you may not have collected the right withholdings if you don’t update both your state and federal W-4s.

Note: If you’re using QuickBooks Online Payroll, this update is not available yet. Please check back for updates.

Colorado

If you need to file a W-4 and you’re an employer in Colorado, you have to file for both the State and the Federal government.

  1. Go to Employees, and then Employee List.
  2. Select the name of the employee.
  3. Select Colorado from the State tab.
  4. Fill out the fields, and select Ok to save.
  5. Select Federal, and enter the employee's W-4 information into the form, and select OK to save.

Nebraska

The Nebraska Department of Labor is changing the 2020 Unemployment Insurance Wage Base as follows:

  • Taxable Wage Base for most employers will remain at $9,000.00 per calendar year.
  • Employers who have been assigned the highest NE UI rate of 5.4% will be subject to a higher taxable wage base $24,000.00 per calendar year.
  1. Go to Employees menu.
  2. Select Pay Employees. A pop-up message will appear,  then select Next.
  3. Select Yes, it includes the rate for NE-UI Wage Base increase. Then select Next.
  4. Select Yes please set up my employees. Then select Next.
  5. Enter only the following information based on your tax category. Don't change any other fields:Enter 0% if you are in category 1-19.Enter 5.4% if you are in category 20.
  6. Select Finish.

North Dakota

If you need to file a W-4 and you’re an employer in North Dakota, you have to file for both the State and the Federal government.

  1. Go to Employees, and then Employee List.
  2. Select the name of the employee.
  3. Select North Dakota from the State tab.
  4. Enter only the following information. Don’t change any other fields:- Field 1: add Name, Address, and Filing Status- Field 4(c): add extra withholding- Field 5: add (Signature) 
  5. Select Federal, and enter the employee's W-4 information into the form.
  6. Select OK to save.

Do you need to enter a 2019 state W-4 form?If you’ll be using a 2019 or earlier form, you’ll need to enter change a few status on the form.

Are there any changes to the status?Yes. If you are going to keep the 2019 and prior form, these are the statuses. If you are using the 2020 and AFTER form, these are how the 2019 statuses change:

  • “Married” changes to “Married filing jointly”
  • “Married at a single rate” changes to “Married filing separately”
  • “N/A” changes to “Head of household”

Oregon

Oregon has implemented a new flat withholding tax rate of 8% required for all employees who have not filled out a Federal W-4 or Oregon W-4 form.

  1. Go to Employees, and then Employee List.
  2. Select the name of the employee.
  3. Select Oregon from the State tab.
  4. Make sure the Withhold at Flat 8% is set to Yes.
  5. Select Federal, and enter the employee's W-4 information into the form
  6. Select OK to save.

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