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joyh59
Level 1

QB Desktop Payroll - federal withholding

An employee has filed a new W4 (2020 or later) and checked the box in Step 2 b, showing that there are 

"2 jobs only". It has been correctly recorded in QB Desktop Payroll Enhanced, yet the proper amount of withholding is not happening. QB is only withholding the Standard amount not the 2 jobs only amount. For the last payroll, the amount withheld was $42 but should have been $79. Over the period of the year, this will add up and cause her to owe taxes. 

Please explain why the Withholding Tables for QB are not correctly tied to the Step 2 b checkbox, as shown on the Federal tax page for the employee. I went back and verified all the way back to the adjusted W4 and it has not been right. 

I did verify that the last updated payroll withholding files are being used in my system. Also, it's not that I don't know what I'm looking at, since I have over 35 years of experience with payroll (learning it by hand first). Also, I have over 25 years of experience with QB, so I've seen a little bit of everything - but this is baffling.  

1 Comment 1
GebelAlainaM
QuickBooks Team

QB Desktop Payroll - federal withholding

I appreciate what you've done so far, @joyh59. Allow me to provide information about the federal taxes deducted incorrectly.

 

I agree that the amount should be higher than the standard amount since it's set up for only two jobs. 

 

In this case, it could be that there's damage or some issues in the setup of that specific employee. To verify, create a dummy employee profile for that employee and check if it's still not withholding the correct amount.

 

If it works fine, continue using that dummy profile moving forward. Then, merge it with the original employee profile to move all the transactions.

 

Here's how:

 

  1. Navigate the Employees menu.
  2. Select Employee Center.
  3. Double-click the name of the employee you wish to merge.
  4. In the Employee Edit window, copy the name of an employee you want to keep.
  5. Click OK.

 

Let me add this article for further information on combining entries in QBDT: Merge list entries in QuickBooks Desktop

 

To learn more about how payroll taxes are calculated correctly and manage payroll reports, visit these articles for further guidance:

 

 

Feel free to click the Reply button if you have any other questions about calculating federal withholding for your employees' paychecks. I'm always here to help.

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