Setting Up Employee Payroll Taxes

After you've set up the basic personal and payroll information for an employee, you need to enter information about payroll taxes. Your employees will each fill out a W-4 form (Employee's Withholding Allowance Certificate) and a comparable state tax information form, providing information about marital status, dependents, and more.

Set Up Federal Payroll Tax Information

If the Edit Employee or New Employee window is still open on your screen, you can skip to step 6. Otherwise, open the Employee Center to view the Employee List.

Click the name of the employee for whom you want to set up payroll tax information.

Press Ctrl+E to edit the employee information.

Click the drop-down arrow to display the Tabs list.

Select Payroll And Compensation Info.

Click the Taxes button.

Make sure the Federal tab is selected.

Enter the Filing Status for this employee, based on W-4 information.

Enter the number of allowances the employee is claiming, based on W-4 information.

Indicate any extra withholding the employee has requested on the W-4 form.

Check all federal withholding options that apply to this employee.

Did You Know?

You can get a blank copy of the W-4 form on the Internet. The Internal Revenue Service makes the W-4 form available for printing. Go to http://www.irs.gov/pub/irs-pdf/fw4.pdf for a copy of the current year Form W-4, Employee's Withholding Allowance Certificate. Note: The IRS doesn't make forms for the next year available online until near the end of each calendar year.

Set Up State and Local Payroll Tax Information

Click the State tab.

Enter the state in which the employee works.

Enter the state for which you will withhold taxes. Typically, the employee fills out a form similar to the federal W-4 form for the state in which he works.

Enter the number of allowances the employee is claiming, based on information supplied by the employee.

Enter any additional required state information for this employee.

If the employee is subject to local taxes, click the Other tab and fill out any required information.

Click OK.

Did You Know?

Other tax information might be required. If QuickBooks is aware of any state or local tax issues pertaining to the state in which this employee works, you see a reminder window that tells you how to enter other required information.