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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?
Solved! Go to Solution.
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.
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.
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?
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:
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!
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?
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.
I used this process for additional withholding on an employee's check, but the additional amount does not show up on the check.
I have checked the settings several times, and the extra withholding is set to the correct amount she requested. But when I write a check there is nothing extra taken out.
What's wrong here?
Hi there, bw1001.
The Extra withholding amount is added to the employee's Federal Income Tax (FIT). There's no additional line in the employee's paycheck for the Extra withholding. If it's not added to the FIT, we can perform a few troubleshooting steps to get rid of unexpected behavior.
To start with, let's try removing the extra withholding amount in one of your employees and then save it. Try to run a dummy payroll and view the paycheck details. Look into the Employee Taxes section and check the amount in the Federal Income Tax field. After that, enter the extra withholding again and create a paycheck. I'm attaching screenshots for your preference.
If you still get the same thing, I'd suggest performing a few browser troubleshooting steps.
You might want to use these articles that will help you in managing your taxes:
Keep me posted on how this works. I'll keep an eye n your reply and will surely help you through it. Have a good one!
On mine it's only taking out the extra withholding amount I put in and not the regular amount plus the extra...what am I doing wrong?
Hello there, @patriot21.
The extra withholding amount is calculated and added to the employee's Federal Income Tax (FIT). Whether you're using QuickBooks Desktop (QBDT) or QuickBooks Online (QBO), the amount of FIT withheld from employees' paychecks depends on the following factors:
You'll have to visit your employee's profiles and check their withholding details. From there, you're able to identify any tax exemptions (if there's any) and verify why's their paycheck is only taking out the extra withholding amount.
To know if you're paying your employees accurately, I'd recommend visiting our free paycheck calculator: Calculate your paycheck in seconds. It helps you calculate employee's pay and withholdings.
Also, I'm adding this article to learn more about payroll processing and taxes in QuickBooks: Payroll 101. It includes topics about income taxes, compensation types, and exemptions, to name a few.
Let me know if you have other payroll concerns or inquiries about managing employee taxes in QuickBooks. I'm just around to help. Take care always.
My paycheck still is showing more than I usually get. I added the amount that I wanted to take out in the EXTRA withholding tax and it is adding this additional to my paycheck. I am not showing that the extra amount's been taken out. Please advise.
Let me point you in the right direction for assistance about taking out extra withholding tax in QuickBooks Online (QBO), @evey88grace.
I understand the importance of deducting the tax from your paycheck. Since you have already entered this, and the amount is added instead of being deducted. Then, I suggest contacting our Payroll Support Team. Our phone support can thoroughly check your account securely and provide fixes in no time. They also have the tools to initiate a further investigation if necessary while maintaining your privacy.
Here’s how:
Additionally, refer to this article for other options when contacting them. You can also scroll down to the bottom to see their support schedules and hours: Contact Payroll Support.
If you have any other concerns about QuickBooks, you can always tag me in the comment section. Have a good day.
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