Employees and payroll
Thanks for joining on this thread, @TRAH2002.
Let’s make sure the newly added employee’s W-4 information is properly recorded in your company file.
To accomplish this task, download the latest release version for your QuickBooks and update the tax table version.
The previous enhances the functionality of the software as well as fixes known issues. Meanwhile, the latter provides the most current and accurate rates and calculations for supported state and federal tax tables, payroll tax forms, and e-file payment options.
To download the release:
- Go to the Help menu at the top to select the Update QuickBooks Desktop.
- This will open another window where you can choose the Update Now tab.
- Mark the box for Reset Update to remove previously downloaded updates and then tap the Get Updates button.
- In the Update QuickBooks Desktop pop-up, click OK to continue.
- Follow the on-screen instructions to kick off the installation.
Once done, let's go ahead and update the payroll tax table. Check out the following article on how to accomplish this task: Get the latest payroll tax table update.
Next, open the company file again and open the employee's profile. From there, go to the Taxes screen and choose the Federal tab.
Once you see the fields (Claim Dependents, Other Income, and Deductions), you can start entering the correct amount.
For your other concern, if your employees were hired before 2020, their allowances will not be altered.
Employers will continue to compute withholding based on the information from the employee’s most recently submitted Form W-4.
For an overview of the new updates to the Federal W-4, check out this article. The information applies to all payroll versions: What’s changing with the Federal W-4?
If you have any clarifications or questions, let me know by posting a comment below. I’ll be right here to answer them for you. Have a good one.
