cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
coopersgoodies
Level 1

income tax is not being deducted from an employee

 
1 Comment 1
Amanda-B
QuickBooks Team

income tax is not being deducted from an employee

Hey there, coopersgoodies.

 

Thanks for joining us here in the Community. I'd be happy to help.

 

To ensure the deductions are applied to your employees, I suggest reviewing the initial set up. Here's how:

 

1. Open Payroll and then Employees from the left menu
2. Select the Employee
3. Click Edit in the Tax withholdings section
4. Scroll to the bottom and open Tax exemptions to see which taxes does [employee name] NOT pay?
5. Uncheck the appropriate boxes for the Canada Pension Plan (CPP), Employment Insurance (EI) and Federal Income Tax
6. Hit Save.

 

I also suggest reviewing the Payroll Deductions Tables for CPP, EI, and income tax deductions.

 

One of the main reasons why taxes aren't deducted, is because the employee doesn't have enough wages to meet the minimum threshold or the gross wages as per the last payroll are too low.

 

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

Need to get in touch?

Contact us