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:
- Taxable wages
- Number of allowances/dependents
- Pay frequency
- Filing status
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.
