Hello, @Cdenn.
The withholding of federal and state income taxes is based on the IRS Publication (Circular E). To ensure that the correct options upon entering the W-4 are selected. Let's check the Federal Filing Status/State Filing Status of the employee.
Please refer to these steps:
- Select Payroll from the sidebar menu.
- Choose the Employees tab.
- Pick the name of the employee.
- Click Edit ✎ beside Pay.
- Next to the withholding section, select the edit (pencil) icon.
- Check the Federal Filing Status/State Filing Status.
If the information is accurate but still getting the wrong calculation, I suggest reaching out to our QuickBooks Care team. This way, they can further investigate what causes the odd behavior of the software and generate steps to fix it for you.
Here's how:
- Navigate to the Help menu.
- Click the Contact Us button located at the bottom.
- From the description box, enter 2020 W-4 is not calculating.
- Hit Let's talk.
- Select Start messaging or Get a callback.
To learn more about the new changes of the federal W-4 as well how to enter and print them, please see this link: What’s changing with the Federal W-4?
Should you need anything else, don't hesitate to comment below. I'm always around to help. Stay safe and take care always.
