Why won't my payroll calculate taxes when I have verified and checked my payroll subscription to make sure it is active? I have also downloaded QB and payroll updates.

Thank you for verifying your payroll status and downloading the latest QuickBooks and payroll updates, jeff883.

I'm here to ensure QuickBooks will calculate your payroll taxes. This way, you'll be able to record the accurate wages and taxes and pay the correct amount to the agency.

There are some instances that the system is providing odd responses after downloading an update like not calculating payroll taxes. To fix this, you'll have to reset the update to refresh the system.

1. Go to the Help menu.
2. Select Update QuickBooks Desktop.
3. Go to the Update Now tab.
4. Mark the Reset the updates checkbox.
5. Select Get Updates to redownload the updates.
6. Close and reopen QuickBooks Desktop when the download is complete.
7. Click Install Now in the QuickBooks Desktop Update Service window.

I've attached screenshots below that shows the first to fifth steps.

Once done, you need to revert the paychecks you've made. This will undo the changes in your employee's paychecks and view correct the taxes. 

1. Go to the Employees menu.
2. Select Payroll Center.
3. In the Pay Employees tab, select either Start Unscheduled Payroll or Start Scheduled Payroll.
4. Right-click the name of your employee in the Enter Payroll Information window.
5. Select Revert Paycheck. Repeat the same process for the rest of your employees.

Moreover, you can pay and file your federal and state payroll taxes through your QuickBooks account. For the detailed information, kindly check out this article: Pay and file your payroll taxes online. It also contains the complete set of requirements to avail our e-file and e-pay feature.

Please let me know if you have other concerns. I'm just around to help.