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.