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JanJaw
Level 3

2020 W4

An employee is completing a new 2020 revised Fed W4 for withholding.  Step 3 on the FedW4 form says “multiply number of other dependents by $500.   Employee entered $1,000 (2 dependents) as instructed.  My question is when entering their choices into Quickbooks desktop under 'employee center', 'payroll info', 'taxes', do I put in a 2 or $1,000?  Is Quickbooks asking for a $ amount of the # of dependents?  

Solved
Best answer May 10, 2021

Best Answers
BigRedConsulting
Community Champion

2020 W4

Enter the dollar amounts that appear on the W-4 on lines 3 and 4(a), (b), and (c).

View solution in original post

11 Comments 11
JenoP
Moderator

2020 W4

Jumping in to hep with your question about the employee's tax setup, JanJaw.

 

Put in an amount in Step 3 for the Dependents claimed section. This is one of the changes made in Form W4 last 2020. 

 

Let me share these articles for more details: 

 

 

You can also check out this article for future reference: Edit or Change Employee Info in Payroll.

 

Feel free to check out this article as well for additional and future reference: Payroll Tax Compliance Links.

 

Please don't hesitate to reach out to us again if you need anything else. I'd be glad to jump right back and help you again. 

JenoP
Moderator

2020 W4

Hi EmoryK,

 

Hope you’re doing great. I wanted to see how everything is going about adding the employee's W4. Was it resolved? Do you need any additional help or clarification? If you do, just let me know. I’d be happy to help you at any time.

 

Looking forward to your reply. Have a pleasant day ahead!

JanJaw
Level 3

2020 W4

I have been to all of these links prior to posting my question, but still skips over my actual question.  I'm still asking when entering the information that the employee inserted into the 2020 W4 form, is QB asking for the dollar amount from section 3 of the W4 form or the number of dependents this represents?  So in other words if employee calculates 2 dependents x $500 = $1000 and inserts that into line 3 of W4.  Do I enter 2 or $1,000 into QB payroll, Federal taxes tab?  I attached a file to show where I am at in QB.  It is unclear if QB is asking for the $ amount or a whole number representing how many dependents.  

RenjolynC
QuickBooks Team

2020 W4

Thanks for getting back here, JanJaw.

 

As per my colleague JenoP mentioned above, your employee will need to enter the $ amount in Step 3 of the W-4 form. When recording their W-4 information in your QuickBooks Desktop, enter the whole number in the Allowances box.  Here's a sample screenshot for a visual reference:

 

 

If you choose the Form W-4 last 2020, you can enter the $ amount in the Claim Dependents box. You can check out the articles provided above for reference.

 

To learn more about the features in QuickBooks Desktop Payroll, you can read this article: QuickBooks Payroll Services and Features for QuickBooks Desktop.

 

Please let us know if you require additional information or other concerns. We're always around to help. Stay safe!

JanJaw
Level 3

2020 W4

Thanks for your reply.  Getting close.  When I choose dropdown box to select 2020 W4, the look and arrangement of boxes change from your example.  You can see it contains a decimal.  Since we don't have fractions of dependents, I questioned if QB wants the $ amount or a whole number that equates to the calculation in step 3 of Fed 2020 W4.  It does calculate differently when trying both ways.2020 W4 QB entry.jpgWorksheet 2020 W4.jpg

BigRedConsulting
Community Champion

2020 W4

Enter the dollar amounts that appear on the W-4 on lines 3 and 4(a), (b), and (c).

JanJaw
Level 3

2020 W4

All good.  Thank you so much.  

bettyj03c15
Level 1

2020 W4

Can you answer this question for the 2023 Step 3. I have employee who wrote down $3000.00. Do I put that whole amount in the table under Federal tab: Claim Dependents $3000.00 or do I have to use the 1A work sheet that says divide by how many pay periods and enter that amount?

 

$3000.00 divided by 26 pay periods = $115.38 or should I enter $115.38 in the Claim Dependents?

 

 

 
 

 

Jovychris_A
Moderator

2020 W4

Thank you for joining this thread, @bettyj03c15.

 

I believe you're correct in entering $3000 (whole amount). But to ensure you're entering the accurate amount in the employee's W-4's info Claim Dependents, I suggest consulting your tax accountant for professional advice about whether to code the $3000 in the Claim Dependents field in QuickBooks or use the 1A worksheet and divide it by how many pay periods to enter the amount.

 

You can also contact the IRS about federal tax questions.

 

In addition, I like you to check the latest updates about IRS Form W-4 and how to enter them in QuickBooks:

 

 

Let us know if you need more assistance with how to reflect W-4 details in the system. Anytime we'll be around to help you more. Stay safe and well.

bettyj03c15
Level 1

2020 W4

Does QB file for payroll already take into account what/how many pay periods/pay dates to it will divide the amount for you?

RoseJillB
QuickBooks Team

2020 W4

Thanks for getting back, @bettyj03c15.

 

In general, QuickBooks will file all information you have entered in your payroll account. The same as what my colleague, Jovychris_A, mentioned above. I recommend consulting with your professional tax advisor. It is to know the proper dissemination of the amounts in relation to how many pay periods it will divide.

 

Additionally, QuickBooks offers a variety of payroll reports. This will give you a more thorough picture of the gross pay, deductions, and tax data for your employee over a specific time frame. For a comprehensive list of available payroll reports and instructions on how to get them, please visit this article: Run payroll reports.

 

Feel free to add a reply if you have other concerns with payroll. I’m just a post away to answer you.

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