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Level 2

Federal Tax and Part time employees

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? 

2 Comments
Highlighted
Level 3

Federal Tax and Part time employees

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. 

Highlighted
Level 2

Federal Tax and Part time employees

I thought that would be the case, but does it sound correct to have an employee with 16k in wages and no federal tax withheld? 

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