Federal taxes are not being removed from my employees paychecks

Thanks for reaching out, @info1488.

The system calculates federal and state income taxes by following the IRS Publication (Circular E), Employer’s Tax Guide. To ensure there were no federal taxes on employees paycheck, let's check if their profile is set to Do No Withhold. 

Here's how:

1. In the left menu, click Payroll.
2. Go to the Employees tab.
3. Select the name of the employee.
4. In the Employee details tab, tap the edit (pencil) icon beside Pay.
5. Click the pencil icon in question # 2 for what are your employee withholdings.
6. In the Federal filing status section, ensure that the Do not withhold (exempt) radio button is selected.

For more information about this, see this article: 0.00 or no income tax withheld from paycheck.

Here's also a resource to learn more about creating paychecks: Create pay checks in online payroll.

Let me know if you have any other payroll or QuickBooks questions. I'm just a few clicks away to help!