I'm here to clear things out for you, Iris3.

Yes, that means the more amount you enter, the less money is withheld. As what my colleague Joshua R have mentioned, instead of calculating the number of allowances that translates into a certain amount of tax withheld, the new form prompts you to enter a dollar amount in the Claim Dependent field.

You can follow the steps that I've listed above in entering the information in the new W-4 form. I've also listed the different entries that need to be set up for the new employees who are required to fill out the new form.

I encourage you to visit this article to learn more about how the new W-4 form works in QuickBooks: What’s changing with the Federal W-4?

Do you have any other questions in mind? Please leave a comment below and I'll make sure to get back to you.