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KR2024
Level 1
posted
‎October 01, 2024 08:43 AM
last updated ‎October 01, 2024 8:43 AM

QuickBooks Desktop Payroll wage tax bracket

Does anyone know of a way around the wage bracket method in QB desktop?  I just realized the QB desktop does not deduct federal income based on gross wages but on the weekly, our employees are paid weekly, paid amount.  Example: I have an employee how makes $1,240 weekly, withholding is only $124 weekly, but the yearend amount will be $64,480, which will be in a higher tax bracket at yearend.  QB only had 10% withheld all year but in September the gross wages are $49,831 so they should be in another tax bracket. Hope this makes sense, basically QB desktop does not look at the year to date but each paycheck.  I am hoping there is a way around this. I did read that QB online does calculate using the percentage, annualized method.  Not sure why QB desktop doesn't do the same.  This could really affect some employees.  Thank you for any guidance in advance. 

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1 Comment 1
Shania_C
QuickBooks Team
QuickBooks Team
‎October 01, 2024 10:02 AM

QuickBooks Desktop Payroll wage tax bracket

Welcome to the Community space, @KR2024.

 

I can offer some insights to assist you with your queries regarding the wage tax bracket in QuickBooks Desktop.

 

The federal income tax (FIT) withholding in QuickBooks Desktop is functioning as intended using the wage bracket method. This method relies on specific wage brackets from IRS Publication 15-T to calculate the amount of FIT withheld for each paycheck. As a result, the withholding amounts can vary based on the employee's earnings for that pay period.

 

Aside from the wage bracket, there are also other details QuickBooks Desktop based on the FIT Federal Income Tax (or withholding) calculations. Here is a list:

 

  1. Employee’s W-4
  2. Pay frequency
  3. Gross wages
  4. Percentage or wage bracket method 

 

Moreover, you can check out these articles to learn about federal and state payroll tax wage bases and limits and how they affect your paychecks and tax payments. Find out which payroll taxes and forms QuickBooks Payroll pays and files for you:

 

 

We appreciate you visiting the Community space today, @KR2024. If you need help with any QuickBooks-related tasks, feel free to ask. Stay safe!

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