Accounting, Payroll & Pension Issues/QuickBooks Payroll & withholding

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Expert: - 9/4/2009


Question
I am new to doing payroll with QuickBooks. I have noticed that sometimes some employees will have no federal withholding taken out and sometimes they do. Are these errors? Can you explain and clarify what is going on?

Answer
Federal income tax withholding is subject to the employees' W-4s.  In order to find our whether or not it's the system messing up or if there is a legitimate reason for the zero withholding, check the W-4.  If they have a lot of exemptions or are "exempt", then you can leave it alone.  If, on the other hand, it looks like they should be having withholding, then you need to go into the employee module in Quickbooks and change that employee's settings.  Quickbooks will do the rest.

Best of luck to you!

Accounting, Payroll & Pension Issues

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Vanessa D. Powell, CPA

Expertise

I am experienced with general bookkeeping, payroll, journal entries, adjusting entries, all types of pension accounting, compliance issues, ERISA, benefit plan auditing, financial statements, payroll tax, Form 5500, retirement planning, and related issues. Please no homework questions. Only US accounting, please.

Experience

I am a CPA in Southern CA. I audit not-for-profit organizations, corporations, and employee benefit plans for the large accounting firm I work for, as well as performing other attest services, planning, and tax services.

Organizations
California Society of CPAs, American Institute of Certified Public Accountants

Education/Credentials
Licensed CPA in the state of CA. Graduated summa cum laude from Colorado Technical University. In order to keep my license, I take 80 hours of CPE every two years. Much of it in the field of accounting, auditing, and employee benefit plans.

Awards and Honors
Graduated summa cum laude (with highest honor).

Past/Present Clients
I have clients from all over the world, in nearly every industry. Most of my audit clients are employee benefit plans and not-for-profit entities. Most of my compilation engagements are manufacturing, agriculture, and construction.

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