I came here looking for this information because I noticed that only $20 was being deducted from our new employee's paycheck for federal withholding.  I didn't want to run payroll until I resolved this because it didn't seem right.  Any tax calculator I attempt to use is asking me for information on the employee that I do not have.  We should NOT have to go to Accountants, the IRS etc. to get this information, and according to other posters on this thread, none of those resources were any help because they don't advise on QBs software.  We pay QBs to have this computed for us.  All of the responses by moderators in this thread say to enter it exactly as the employee has completed on the W-4, which does not seem correct.  The W-4 has an amount that the employee enters, not a number of dependents.  Every other poster has stated when they enter this amount, no federal withholding is deducted.  When I enter an amount, it is not zero, but it is only $20. I don't know why the moderators cannot answer the question that is being asked or just say they don't know.  Providing links to information we don't need or that will not help with this particular issue is frustrating. I tried entering just the number of dependents and that gave me $0 for withholding.  Possibly because this employee has 3 dependents and doesn't make a high hourly wage, the $20 is accurate? I still don't have faith in this QBs Payroll module and will need to worry if this employee is going to get some huge tax liability at the end of the year.  Good grief!