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Experienced Member

payroll tax liabilites

Tax auto calculation doesn't work after 2019

I think I did update and payroll setup again.

Can you tell me how to fix it.

 

 

1 Comment
QuickBooks Team

Re: payroll tax liabilites

Thanks for providing us a screenshot, SPC Automotive.

 

This will help us know what your specific concern is so that we can provide the accurate answer.

 

When you encounter the special calculation situation pop-up, this doesn't always mean an incorrect calculation. It's QuickBooks working as designed. These are the reasons why you encounter it:

  • Annualized salary exceeds the salary limit
  • The gross wage of the employee is too low

If the gross wage is too high/exceeds the limit, Federal and State income taxes (FIT and SIT) will not automatically calculate. When this happens, first, you'll have to check the employee's wage in the paycheck. Verify if it's correct by checking the Earnings section of the paycheck. If it's correct, you'll have to calculate the FIT and SIT manually and enter it in the paycheck details.

 

Though, if the wage is incorrect, you'll have to adjust/change the employee's salary/hourly rate. Here's how:

  1. Click Employees, then choose Employee Center.
  2. Double click the employee's name to open the profile, then go to the Payroll Info tab.
  3. Under EARNINGS, enter the correct hourly/annual rate.

If the employee's wage is too low, it might be the correct calculation of FIT and SIT is zero. You can refer to the Publication 15, Circular E, Employer's Tax Guide to check the accuracy of the calculation.

 

I've got you an article for future reference: How QuickBooks calculates payroll taxes.

 

If you need more help, you can always leave a comment below.