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info-westcoastpo
Level 1

When I run payroll, it doesn't deduct income tax. What am I doing wrong?

EI and CPP automatically gets taken out. Can't figure out why Income Tax doesn't do the same
2 Comments 2
Alex M
QuickBooks Team

When I run payroll, it doesn't deduct income tax. What am I doing wrong?

Hi there info-westcoastpo,

 

It's vital that all your employees get paid the right amount for the hours they've worked for your company. QuickBooks Online Payroll is a great tool able to help calculate deductions on payroll so that you can remit them to the respective agencies at the end of the reporting period. i can provide some information about income tax.

 

One possible reason that the income tax isn't being calculated is that your employee isn't having any Income tax deducted is that they aren't making enough money to reach the minimum amount of income needed to mandatorily have income tax deducted. In order to check if this is the case, try going to the Payroll tab, then clicking Run payroll as if you were to run payroll. Enter a bigger amount of hours for that employee, something along the lines of the equivalent of 40 hours a week. You can then click on the Pencil icon to view each deduction without running payroll. Go to the Employee taxes section, and see if there is income tax being deducted. You can also manually adjust the income tax when running payroll by going to this section by entering your wanted amount of income tax to be deducted in the box

 

For further assistance with the income tax calculation or the income tax isn't being deducted even on a higher amount of hours, I recommend reaching out to the QuickBooks Online support team outside of the Community. They'll be able to view your pay runs as well as employee setup in order to determine the cause of no income tax being calculated as well as provide information on how you can get it calculated. You can reach out to them using one of these methods:

 

Schedule a Callback or start a Chat: click (?)Help in the upper right > type and enter "Contact support" into the QB Assistant > click Contact Us > explain your situation > click Let's Talk > choose Get a callback or Start a Chat.
Social Media: Facebook and Twitter

 

If you have any other questions, feel free to reach out here.

 

Alex M
QuickBooks Team

When I run payroll, it doesn't deduct income tax. What am I doing wrong?

 

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