Hello! QB hasn't been deducting federal taxes from the paychecks of my part-time employees. Based on what I have seen in the community, it's because they are not meeting the minimum wage base. But I;m not seeing what the minimum wage base is. Additionally, after reviewing the IRS guidelines for part-tme employees, it says that they should generally be treated as FTE when it comes to federal taxes.
My questions to the community: What is the minimum wage base in QB for federal tax calculation?
If my part-time employees are earning below this wage base, what's the proper workaround so they pay their taxes? Should they be adding an "extra withholding" to their W4?
QuickBooks will correctly calculate the required withholding based on the current earnings and the year-to-date earnings whether your employees are full- or part-time. You don't need to ensure that they have withholding, just keep your payroll updates up-to-date and run all earnings through payroll. The system extrapolates the correct amount of withholding and adjusts it with each payroll as needed.