If you have got a job very recently, it is quite likely that you will see an IRS Federal Form W-4 sometime soon. A W-4 form is one of the many tax forms that assist the government to determine tax liabilities to taxpayers.
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It may be very complex to understand tax forms. Even the most experienced business owners often do not understand some tax forms. In today’s article, there is a complete overview of federal forms W-4 and how to print such forms from QuickBooks for the employees, and how to edit information about the employee profiles.
The federal form W-4 has two versions. 2020 later and before 2020. It is significant for a business owner to have their employees fill out the W-4 form and add the info in QuickBooks. The Federal Form W-4 is a crucial aspect of the Federal Tax calculations of the paycheck of your employee.
What is a W-4 Tax Form?
To begin with, a W-4 tax form that an employee completes and then gives back to their employer to show how much tax to withhold from every paycheck. The official label of a W-4 is Employee Withholding Certificate, even though some acknowledge it as a federal withholding form.
The Federal Form W-4 is used by employers to analyze payroll taxes and the hold-back taxes for the state and IRS on behalf of particular workers.
How to Enter and Print Federal Form W-4 in QuickBooks Payroll?
Here are the steps to enter and print federal Form W-4 in QuickBooks Payroll:
Step 1: Employees must Complete the W-4 Form
It is important that your employee fills out the W-4 form when they are hired by you or when their tax status changes.
Here is some crucial information about filling out the W-4 form for you and your concerned employees:
- All the employees must fill out the W-4. According to the IRS rules, if you do not get a filled W-4 form from any particular employee, you can withhold their tax
- In case your employee requires assistance in comprehending the W-4 or requires help with their tax problem, it is highly recommended to consult a tax planner or financial advisor.
- Your employees can either the 2020 or newer federal W-4 form or before the 2020 W-4 form.
- In case your employee shifts to the 2020 or the later W-4 form, it is quite likely they will witness a change in Federal Withholding on their respective paychecks and the tax amount refunded or owed when their personal tax return is filed.
Print a Blank W-4 Form for Your Particular Payroll Product
It is possible to print a blank W-4 form right from the payroll product. Choose your product mentioned below for the guidelines:
QuickBooks Online Payroll
Step 1: Choose Taxes and then click Payroll Tax.
Step 2: In the provided Payroll Tax Center, choose Filings.
Step 3: Go down the Filing Resources part and choose Employee Setup.
Step 4: Choose W-4.
Step 5: Choose View and then print the particular form.
QuickBooks Desktop Payroll
Step 1: Choose Employees and then click Employee Forms.
Step 2: Select the right W-4 form for your particular employee. You can choose Federal W-4 2020 and Later or Federal W-4 2019 and Prior.
Step 3: A PDF file will open up, choose File and then choose Print and click it.
Step 2: Add the W-4 Details of Your Employee in Your Provided Payroll Product
The moment you have the updated or new W-4 of your employee, you will require to add that information to your particular payroll product, to enable Federal Income tax calculate as per their W-4.
QuickBooks Online Payroll
If you got a new employee, you can enter the W-4 details of your employee manually or you can request your employee to add their own W-4 details. If an employee provides you with an updated W-4, that information will be included.
Step 1: Navigate to Payroll and then click Employees.
Step 2: Choose your Employee.
Step 3: From the section for Tax Withholding, choose Edit.
Step 4: In the particular Federal Withholding section, add the relevant information from the W-4 form of your employee. In case an employee claims an exemption on W-4, in the dropdown▼ for Filing Status, choose Exempt.
Step 5: When completed, Press Save.
QuickBooks Desktop Payroll
Step 1: Choose Employees and then choose Employee Center.
Step 2: Choose the name of the particular employee.
Step 3: Choose Payroll Info and then choose Taxes.
Step 4: On the provided Federal tab, in the dropdown for W-4 Form▼, choose the relevant form.
Step 5: Add the W-4 details of the employee. In case they claim exemption on W-4, in the dropdown▼ for Filing Status, choose Exempt.
Step 6: Choose OK to save.
How to View or Edit the Payroll Forms and Taxes?
Often, there comes a situation when you require to make changes to your tax setup or you may just want to look at certain tax forms that were filed previously. Press on the Gear icon that is available on the upper-right side of the home page and choose Payroll Settings.
The Payroll Settings will show:
- Federal Tax Details: Perform alterations concerning your FEIN, tax forms, and state account number that you need to file, along with your payment schedule.
- Shared Data: You can choose to enable employees to import the tax details of W-2 forms into Turbo tax or not. This is beneficial to employees who file their related taxes because they will not have to add information themselves.
- General Tax detail: Perform alterations to the name of your company, filing address, filing name, etc.
- Email Notifications: If you need tax payment reminders along with the notifications that have been emailed to you and leave the following thing on the default- Send to you settings.
Note: There are sections for you to edit bank details, paycheck printing options, and direct deposit funding time, and assigned payroll general ledger accounts.
What is the Crucial Information Required by QuickBooks to Commence the Payroll Service?
You will require to deliver QuickBooks with the basic details to initiate the payroll service:
- Your Business contact details like mailing address, legal name, etc.
- Federal Employer Identification Number (FEIN)
- Deposit schedule or payment schedule for federal tax payments
- Hire date along with the birth date for each employee
- Type of company. For instance Sole Proprietorship, LLC, Corporation, etc.
- Payroll tax form you need to file (944 or 941)
- Employment training tax or different state rates
- Your bank account for e-pay
- Online ID along with the password to use your bank account
- Deposit schedule or payment schedule for state tax payments
- SUI Rate
- State Account Number
We hope that you have completely understood about entering and printing federal form W-4 in QuickBooks Payroll. All you need to do is understand and perform the steps in the given order.
For this purpose, you can call and reach out to our team of QuickBooks experts. Our seasoned QuickBooks experts are adept in their job. Our experts understand QuickBooks and its functioning well.
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Frequently Asked Questions (Faqs)
Do W-4 Forms Require to be Finished Yearly?
No. The W-4 form is not required to be filled out annually. However, if there is a shift in situations that impact how much money must be suspended from the paycheck. It is suggested to finish a new W-4.
What Shall I Claim 1 or 0 on my W-4.?
It is one of the most commonly asked questions about W-4 if you wish to claim 0 or 1. The key difference between appealing for 0 or 1 is that it calculates whether you will get a huge sum during tax season or you will receive more money in every pocket.