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What is the purpose of Extra Withholding under the State section of the Employee Taxes?

In setting up Employees, there is a field on the State Taxes tab for Extra Withholding. What is the purpose? Why is it here rather than at the Federal level?

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Best answer February 15, 2020

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Moderator

What is the purpose of Extra Withholding under the State section of the Employee Taxes?

Hello @Navigator72,

 

Extra Withholding is used to enter an additional amount for employee taxes aside from the total withholding taxes. So a smaller amount of taxes throughout the year is taken out, rather than a larger tax return at the end of the year. You can enter an extra withholding amount of taxes for your employees in both state and federal taxes.

In case you need some ideas and best practices to follow in managing your payroll transactions, you can always visit our Employees and Payroll Taxes articles for reference.

 

You can touch base with me here for all of your QuickBooks needs, I'm always happy to help. Thanks for dropping by.

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Highlighted
Moderator

What is the purpose of Extra Withholding under the State section of the Employee Taxes?

Hello @Navigator72,

 

Extra Withholding is used to enter an additional amount for employee taxes aside from the total withholding taxes. So a smaller amount of taxes throughout the year is taken out, rather than a larger tax return at the end of the year. You can enter an extra withholding amount of taxes for your employees in both state and federal taxes.

In case you need some ideas and best practices to follow in managing your payroll transactions, you can always visit our Employees and Payroll Taxes articles for reference.

 

You can touch base with me here for all of your QuickBooks needs, I'm always happy to help. Thanks for dropping by.

View solution in original post

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Level 1

What is the purpose of Extra Withholding under the State section of the Employee Taxes?

I have an employee who would like us to take out additional taxes from his check during the year. I am on quickbooks on line. When I put in an amount on the Extra Withholding it doesn't take any additional out and how do I designate how much to state and how much to federal?

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QuickBooks Team

What is the purpose of Extra Withholding under the State section of the Employee Taxes?

Hello, @konjoian.

 

I hope your day is going well. I'd be glad to assist you with where to put those extra withholdings at in QuickBooks Online.

 

You can go to the employee's profile and add those extra withholding's there.

 

Here's how:

  1. In the left-hand menu, hover over the Workers tab and choose Employees option.
  2. Locate the employee and select the Pencil icon beside of Pay.
  3. In the second box "What are (customer's name) withholding's?", click on the Pencil icon.
  4. In the bottom right, there's an option "4c. Extra withholding" this is where you'll put those additional taxes.
  5. When you're ready, choose Done.

Also, for more information about pay types and deductions, refer back to this article: Supported pay types and deductions explained

 

If you have any more questions or concerns, I'm only a few clicks away. Have a safe and productive rest of your day!

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Level 1

What is the purpose of Extra Withholding under the State section of the Employee Taxes?

For the amount I put in the box, with this amount be withheld each paycheck or will this be the total amount withheld for the year and that will be broken out between each paycheck?

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QuickBooks Team

What is the purpose of Extra Withholding under the State section of the Employee Taxes?

Thanks for joining this thread, @isaiahb.

 

In the Extra Withholding section when you set up the Employees, you'll want to enter the amount to be withheld for each paycheck. If you need further assistance or have any other questions, you can leave me a Reply and I'll get back to you. 

 

Best wishes to you and your company. Have a safe weekend ahead.

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