Help - how to allocate new 2020 Tax Allowances in the old 2018 version of QB desktop
Hello - I need to appropriately show Tax Allowances from the new 2020 W-4 form to the old QB-2018 software version. In 2019 an employee requested allowances of "9" (she has special circumstances for that high allowance and it is irrelevant to my question perhaps). Now she submitted a new W-9 form (with an advise of her friend accountant, which states 4(a) $1,033.00 (other income) and 4(b) $11,108.00 (extra withholdings). Since the new 2020 W-4 does not mention allowance numbers as 1 or 2 etc., but QB-2018 has the appropriate box in Payroll Tax (for Fed and State taxes) plus an extra box for "extra withholding", how would I approach this? Would I just enter the sum of 4(a) and 4(b) in the "extra withholding" box and leave blank for the "allowances" box? Or would I have to use them both?
I can probably ask an employee, but it does not sound professional as I supposed to know it. I started bookkeeping for this non-profit org 2 years ago, but it started to get more complex lately and I have nobody to ask.
Thank you very much in advance!
The QB 2018 should have a payroll update, that you use to enter the new 2020 W-4 info. There is a drop down menu, at the top of the W-4 enter window. Choose that, then you can enter the accurate info.
Thank you, Casey, for your response. For some reason, my update does not give me any dropbox menu with the options you mentioned. I have to ask if the number in tax allowance box should be left at zero since all other calculations are provided in the new W-4 form.
I will have to try to update tax tables and follow these steps:
- Go to the Employees menu.
- Select Get Payroll Updates.
- Select the Download Entire Update checkbox.
- Select Download Latest Update. A window appears when the download is complete.
I will post an update tonight.
Hi Casey - after installing payroll updates, the section for Fed and State Tax allowances did not look any different than before. I read numerous frustrating questions on Intuit help forum from people with similar needs and very vague general responses from specialists. Nobody at Intuit is addressing how the new W-4 form has been transposed to QB in its entirety. My guess is that QB has to be updated (not just a payroll section) to QB 2020 Pro. Last night I had to process payroll and tried to preview a check and allocating the numbers and compared with an employee prior checks, looked at tax tables, then I tried to analyze if it makes sense. It felt like a guessing game. Finally, I tried to speak to an employee to find out what she was trying to achieve, but she was unavailable.
Also, I am trying to find out what is the standard tax withholding single-digit number that used to be on W-4 prior to 2020 (i.e. 1, 2, 3 etc.)? Is it 1 or it depends? I can not find that answer. On the new W-4 it sates in section 4 (b) "if you expect to claim deductions other than standard deductions".
Sorry for the late reply.... you do NOT need to UPGRADE to QB 2020. You may need to UPDATE the QB 2018 program. NOT the payroll sub, but the actual program. You may also need to reboot the computer after that, to have all updates take affect.
I have QB 18, 19 and 20 installed and all 3 programs work with the new W-4. You could also have them fill out the old W-4, until you can get this fixed. The default to set up is Single, and 0 Exemptions, if you don't have better information.
to UPDATE your 2018 version, go to Help, then choose UPDATE QUICKBOOKS DESKTOP.
Hope that helps!