Learn how to withhold additional income tax for employees who want to have an extra amount taken out each paycheck. This is helpful for any employee to reduce the amount they may owe when they file their personal income tax returns.

Nonresident Aliens
Withholding extra is also useful for nonresident alien employees, since the Payroll module does not support automatic calculation of nonresident alien withholding adjustments. See IRS Notice1036 for guidance on how nonresident alien status affects taxable wages.

Withhold Additional Income Tax

For employees who want to have additional income tax withheld from their checks. These steps are for federal income tax, but you may also withhold extra for state income tax.

  1. At the main screen of Employee Data & Payroll Look Up an Employee.
  2. Click the Withholdings icon (building) on the toolbar.
    Employee Toolbar: Withholdings Icon
  3. At their Employee Standard Withholdings screen, double-click Federal Income Tax.
    Employee Withholdings: Double-click Federal
  4. At the Withholding Editor screen, in the Additional Withholdings row, enter the additional amount (per pay period) the employee wishes to have withheld in the Value column.
    Federal Income Tax: Additional Amount to Withhold