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elijahgairns
Level 1

No income tax being deducted from a few of my employees paychecks this next payroll, why is that? And how do I fix it?

The paycheck is small for the employee, when I add more hours it adds income tax but i'm not going to pay them more then they worked so they get taxed, they work part-time 1-2 weekends a month for me but they work fulltime elsewhere, from my understanding there should be income tax one all of this employees pay cheques as they work for another company and are above the minimum

1 Comment 1
Nicole_N
QuickBooks Team

No income tax being deducted from a few of my employees paychecks this next payroll, why is that? And how do I fix it?

The lack of income tax deductions from certain paychecks is often related to the employee's tax situation and payroll setup, elijahgairns.

 

If your employees’ paychecks are missing income tax deductions, it’s important to ensure their tax setup is accurate and meets payroll requirements under CRA regulations.

 

To verify this, check the employee’s tax setup in QuickBooks Online to ensure their TD1 amounts and other tax details are entered properly, particularly if the employee works for you part-time but has a full-time job elsewhere.

 

Here's how:

 

  1. Go to the Payroll menu and select Employees.
  2. Choose the employee’s name, then click Edit under the Tax withholdings section.
  3. Review the TD1 amounts and make adjustments if necessary.

 

It's also important to note that when employees earn a small amount such as working 1–2 weekends per month, they may fall below the CRA’s basic personal exemption threshold for taxable income in that pay period.

 

CRA requires income tax deductions only if the employee's earnings exceed the exemption thresholds, which are applied per pay period.

 

I hope this helps. Please let us know be leaving a reply below if you have any further questions.

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