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cassidyfxstudios
Level 1

How do I inputs deductions and estamate federal income tax

 
1 Comment 1
MirriamM
Moderator

How do I inputs deductions and estamate federal income tax

Great day to you, @cassidyfxstudios.

 

One of our goals here in Intuit is to make sure you'll have a worry-free tax season. QuickBooks Online (QBO) is set up to add both Federal and State additional amount that withheld on the employee's paycheck. Thus, the payroll taxes will automatically calculate after you've set them up on your account. 

 

For Federal Income Tax and State Income Tax, QuickBooks calculates withholding based on these factors:

  • Agency's wage and tax calculation table.
  • Employee's filing status, number of allowances, or extra withholding amount in the employee setup.
  • Pre-tax deduction items included on the paycheck.
  • Changes in pay frequency.
  • Creating a paycheck with wages that has lesser or larger amount than what the employee normally gets in a pay period.

For more information about these processes, check out below articles:

If you have questions, please reach back to me. I will be more than happy to further assist you.

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