Income Tax Withholding is Rounding to nearest dollar

Hi @aquinones.

I'll share some information on how you can correct the tax amounts.

Both QuickBooks calculation methods are correct and acceptable to the agency. To correct the amounts, you can verify employee's state taxes based on these factors:

• • State Worked and State Subject to Withholding
  • SUI is appropriately marked
  • Extra Withholding (extra withholding increases the amount collected for SIT)
  • Filing status
  • Number of allowances

You can follow these steps below to check the workers' profiles:

1. Select the Employee Center, and double-click the employee's name.
2. Select Payroll Info, and select the Taxes button.
3. On the State tab, verify that the following items above are set up correctly.
4. Make any necessary changes to the setup.
5. Select Ok.

I've added these articles as your references to correct the withholding tax and help review your payroll setup:

• How QuickBooks calculates payroll taxes
• Troubleshooting incorrect SUI or SIT on paychecks
• QuickBooks Desktop calculates wages and/or payroll taxes incorrectly

Let me know if you have other concerns with income tax withholding. I'm always around to help you. Take care!