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dwaggoner
Level 1

desktop payroll not calculating federal or state taxes.

desktop payroll not calculating federal or state taxes.

Solved
Best answer August 28, 2024

Best Answers
FishingForAnswers
Level 9

desktop payroll not calculating federal or state taxes.

@dwaggoner  This depends on what you mean by federal or state taxes.

 

If you mean Federal Income Tax Withholding and State Income Tax Withholding, it's possible that your employees, given their individual tax withholding set-up, didn't earn enough for the system to calculate income tax withholding.

 

If you mean medicare, social security, or other %-based payroll taxes, that usually happens when you haven't gotten payroll updates in a while. After so long without payroll updates, the system will stop calculating payroll taxes altogether.

 

Until you provide more information, a good first step would be to force a payroll update.

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2 Comments 2
FishingForAnswers
Level 9

desktop payroll not calculating federal or state taxes.

@dwaggoner  This depends on what you mean by federal or state taxes.

 

If you mean Federal Income Tax Withholding and State Income Tax Withholding, it's possible that your employees, given their individual tax withholding set-up, didn't earn enough for the system to calculate income tax withholding.

 

If you mean medicare, social security, or other %-based payroll taxes, that usually happens when you haven't gotten payroll updates in a while. After so long without payroll updates, the system will stop calculating payroll taxes altogether.

 

Until you provide more information, a good first step would be to force a payroll update.

RheaMaeH
QuickBooks Team

desktop payroll not calculating federal or state taxes.

Welcome to the Community, dwaggoner. Let me share information about your payroll taxes aren't calculated in QuickBooks Desktop (QBDT).

 

QBDT relies on the payroll information you've entered to calculate accurately. If payroll taxes aren't calculated, there are several potential reasons, including:

 

  • The employee, tax, or payroll item setup.
  • The wage limit has been reached.
  • Outdated QuickBooks Desktop Payroll and its tax table.
  • Check the filing status for federal taxes.

 

To review how your employees setup and confirm that their payroll tax settings are correct, follow the steps below:

 

  1. Go to Employees and select Employee Center.
  2. Double-click the employee’s name to open their profile.
  3. Navigate to Payroll Info.
  4. Review the Pay Frequency drop-down menu for accuracy.
  5. Click the Taxes button.
  6. Under the Federal tab, verify the Filing Status and Allowance details, making edits as necessary.
  7. Tap OK.

 

For more insights on the tax calculation, check out this article:  How QuickBooks calculates payroll taxes. If you need additional troubleshooting steps, you can find them here: Troubleshoot paychecks calculating incorrectly.

 

Lastly, you can visit this article to help you wrap up this year’s payroll and prepare your tax form: Year-end checklist for QuickBooks Desktop Payroll.

 

Let me know if you need further assistance with payroll taxes-related issues. We're always here to help.

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