Should withholding for child support be included in gross wages?

Yes. He is going to pay all kind of taxes after the child support. If you set up the deduction by using the deduction type QuickBooks offers for child support, you are going to do it the way it should be done.

Reka

It should definitely be included in gross wages with no exceptions

Thanks, for some reason it is coming up in Box 10 on the W-2 and that amount is not being added into gross wages.  Should it be appearing in Box 10?

It's the opposite of what you are describing.

You pay the regular wages as with any employee.

This garnishment is a Deduction, it is taken out of Net Pay after all taxes are computed. It is done using a Payroll Item that is set up with No Tax tracking. It simply reduces the take home pay. Essentially, you are doing this person's personal banking.

It doesn't show on the W2 at all.

Box 10 is Dependent Child Care, this is not what you are describing. It is not company paid and it isn't for child care.

It's because this is a deadbeat parent.

Divorce laws vary by state.

In Texas, the following rule applies according to one lawyer.

Withholding orders are mandatory. In other words, every time a court orders child support - whether on the original divorce or in a modification proceeding--the court must order that income be withheld.

The court may delay the above rule but the orders are mandatory.

So the employee here may or may not be a deadbeat parent.

But to correct the problem it is not Dependant Child care and should not be in box 10, it is simply Gross Wages Paid and an Other deduction before net wages are paid and is a garnishment and taken out of Net Pay

I would further explain: "It" isn't gross wages paid.

The amount of this Child Support is not anything you, the employer, track as contributing to pay at all. It is a Wage Garnishment, and you can read about this in the Help system and in Payroll Setup Help. 

This is your process:

Enter the pay for this person on the paycheck, just whatever has been earned.

Let the taxes calculate.

The last thing to do is to deduct from the takehome pay the amount for Child Support. This parent does not get to take home the whole paycheck amount. You are required to hold back the Child Support and send it on, on behalf of the parent.

I don't mean to insult anyone, if you took exception to the phrase "deadbeat parent," this is the generalization of this process. No one goes to court, unless they have to. No one goes to the State to administer a family relationship, unless they have to. No matter what you call it or how it came about, the employer is now enforcing the child support order and doing the banking for the fulfillment of the order.