
Need help with employee payroll set up. Claim dependents box.
I haven’t had this situation come up with payroll since the federal form was changed. I’ve been on the Quickbooks community page and Google and I can’t find the correct answer.
I have a new employee that has entered an amount of $6600 in Step 3 of their W4. They have 3 dependents.
Do I enter $6600.00 in the Claim Dependents box? Or do I enter 3?
I’ve read that entering the dollar amount causes no federal taxes to be withheld. QB does give me a warning message when I tried entering it.
But entering 3 doesn’t seem correct as the box has a decimal and the federal form no longer counts dependents in that way.
I’ve read somewhere that I need to divide the $6600 by the number of paychecks in a year. In our case 52, and enter $126.92.