Thanks for bringing this up, sleepwell2013. I know how important it is to ensure that payroll deductions are accurate and compliant. To resolve this, let’s start by reviewing a couple of key areas in your QuickBooks Online Payroll setup.
First, I recommend checking your Federal tax settings to confirm that everything is configured correctly. Misconfigurations in this area can sometimes cause payroll to skip federal tax deductions.
You’ll also want to look at the employee’s tax details in their profile. Specifically, check the Tax withholdings section for their withholding amounts and ensure no exemptions have been applied. These settings directly impact how taxes are calculated for their pay.

If everything appears to be set up correctly, and federal taxes are still not being deducted, I recommend contacting our Payroll Live Support Team for further assistance. Our experts can take a closer look at your account and help identify the issue.
- In your QBO company, select the Help icon.
- Hit Contact Us
- Enter a keyword of your question in the field, then Continue.
- Choose Callback or Chat for support.

To prevent your calls from being disconnected, I recommend checking our support hours for prompt assistance: Get help with QuickBooks products and services.
Please keep us posted on how it goes. If you have any further questions about federal tax deductions or need help with your payroll setup, please don't hesitate to Reply below. I'm here to ensure everything runs smoothly and accurately for you. Take care.