Tutorial #QB9-5: Setting up Employee Payroll Taxes
Intro: Each employee fills out a federal Form W-4 and related state form to help the employer determine payroll tax withholding. This information needs to be entered in QuickBooks.
Step 1: Open Tax Window
With the Edit Employee screen still open (from the previous tutorial), click the Taxes button. The Taxes window opens for this specific employee.
Step 2: Enter Federal Tax Information
Make sure the Federal tab is selected. Enter the Filing Status according to the employees Form W-4 information. Enter the allowances and any additional withholding as indicated on the Form W-4. Check the federal withholding options that apply to this employee.
Step 3: Enter State and Local Tax Information
Click the State tab. Choose the appropriate state for this employee. Enter the state withholding information according to the information provided by the employee. If any local taxes apply to this employee, click the Other tab and enter the appropriate local tax withholding information.
Step 4: Save Your Information
Click OK to save the payroll tax information.