@Nevarc76 Did you find a resolution?  I'm struggling with this same thing.  I'm a newly hired officer at my company and the only one on the 2020 W4.  My own taxes aren't coming out right and it sounds exactly like what you've experienced.  Curious if you have found a resolution or if you've been forced to find a work around.  Thanks in advance!

Hello, @Anthony Howard.

I'm here to share some information on how QuickBooks calculates your payroll taxes.

First, here are the factors that may affect the tax calculation on your paycheck:

• The total annual salary exceeds the salary limit.
• The gross wages of the employee's last payroll are too low.
• The tax table is not updated.

To resolve this recurring issue, let's make sure that your QuickBooks software and payroll tax table is updated to the latest version. Once completed, let's close and open QuickBooks to ensure that all components are updated. 

Now, let's review your payroll information. This is to make sure that all information is entered properly.

1. Go to Employees, and then Employee List.
2. Select the name of the employee. 
3. Click the Payroll Info tab, and then select Taxes
4. On the W-4 Form drop-down, select 2020 and Later
5. Make sure your employee complies with the points on the Federal W-4 form popup, and then click OK. 
6. Edit the employee's W-4 information into the form
7. Select OK to save.

Just a heads-up, allowances are no longer allowed base on the updates from the IRS. Here's an article you can read to learn more: What’s changing with the Federal W-4?

Lastly, I've added these articles to learn more ways to fix payroll taxes that are not calculating:

• QuickBooks Desktop calculates wages and/or payroll taxes incorrectly
• How QuickBooks Desktop calculates taxes

Know that you're always welcome to get back to us here if have other questions about managing your employees' payroll and taxes. Have a good one!

I am having this same problem: I have updated QB, updated payroll updates, but still no withholding, Medicare, etc. is being withheld from the employee check.  All settings look correct in employee profile.  I have successfully paid this employee in October and November with payroll withholding calculated by QB.  Help?  

Hello @Lynn2021! Glad you're here in the Community. :)

As you can see, this has been busy thread and agents have given steps on settings to check in your account. If you have tried those suggestions and still find that your withholdings are not being applied, it's best to reach out to Payroll support directly so that they can look specifically at your account and fix this for you. 

1. Open QuickBooks.
2. Go to Help, then QuickBooks Desktop Help.
3. Hit Contact Us.
4. Give a brief description of your issue, then click Continue.
5. Choose which way you want to connect with the agent.

If you have any further questions about what I've said, please don't hesitate to reply. I'm always happy to help in any way I can!

Using QuickBooks online. After reading all of the frustrating posts since early 2020. I am dumbfounded by the fact this issue has not been resolved. I have also ran into this issue. I have two online accounts because I have two separate businesses. What I have noticed is the first person who is setup in the employee list does have the correct federal income tax being withheld. However everyone else listed after that first person their withholdings are $0. I have created a case as has been suggested in this thread. But what happens when you get crickets......

This is a paid service that is not being properly provided. This needs to be escalated to the top ASAP.

Quickbooks support personnel are clearly incompetent.  There is clearly a programing issue with the federal withholding tax.  In numerous responses they say maybe the employee was set up incorrectly, or maybe the wage does not meet withholding requirements.  They seem to be missing the point that these employees should be having federal taxes withheld and Quickbooks payroll is NOT CALCULATING THE WITHHOLDING CORRECTLY.  They give a canned answer that they have to comply with the federal tax withholding tables!!  Yes, we understand that!!  WHAT WE ARE TRYING TO SAY IS THAT THERE IS AN ERROR IN THE PROGRAM AND IT IS NOT CALCULATING THE TAXES BASED ON THE FEDERAL WITHHOLDING TABLES.

PLEASE FIX THIS ISSUE IMMEDIATELY.  Either that of pay my darn tax bill that resulted because of under-withholding.

I am having the same problem, can anyone assist?

Thanks for joining the Community, ecarrella.
 

If your W-4 continues not calculating its federal withholding after using each of my colleague's recommended troubleshooting processes, I'd recommend getting in touch with our Customer Care team. They'll be able to pull up the account in a secure environment, conduct further research, and create an investigation ticket if necessary.
 

They can be reached while using QuickBooks.
 

Here's how:

1. In your top menu bar, go to Help, then QuickBooks Desktop Help.
2. Click Contact Us.
   
3. Enter a brief description of the issue in our Ask a question (or tell us what's wrong) field.
   
4. Press Continue.
   
5. Select We’ll contact you for callbacks or Message Us to start an instant messaging session.

Be sure to review their support hours so you'll know when agents are available.
 

Please feel more than welcome in sending a reply if there's any questions. Have a wonderful Monday!

I got a call from an advisor yesterday but they never called back. i need to complete my payroll but the Federal taxes are still not being taken out, please help

Thanks for getting back to us, @ecarrella.

You can get in touch with our Customer Support Team again and give the reference number of your case. This way, they can further investigate why your Federal taxes aren't taken out and provide other troubleshooting steps, so you can complete your payroll. 

Just follow the steps shared by ZackE on how to reach them. Also, make sure to update your tax tables at least every 45 days, or every time you pay your employees to get the most current tax calculations.

Moreover, I'd suggest running and customizing any payroll reports in the program. Doing so will help you get the payroll information you need about your business. Just go to Reports from the top menu. Then, choose a report from the Employees & Payroll section. To learn more about this process, visit this article: Customize Payroll and Employee Reports. 

Reach out to me in the comment section if you have any other issues or concerns, and I'll get back to you as soon as possible. Have a great rest of the day!

I am having these same issues. Trying to send a PM to Yvette and it will not pull up her name as am option to send message to. Need to get resolved ASAP! 

Thanks for letting us know about this, @grayce.

It's my utmost priority to ensure that your taxes will calculate properly in QuickBooks Desktop so you can get back on track.

The solutions shared by my peers above can help fix the calculation of your taxes in the system. If none of these work for you, I recommend contacting our Customer Care Team. They can run a remote viewing session to help identify the root cause of this matter and apply a fix.

To do that:

1. Click on Help at the top.
2. Press on QuickBooks Desktop Help. 
3. Hit on QuickBooks Support. 
4. Choose your preferred way to speak with our representative.

In addition, you can always utilize this reference attached about some fixes if taxes are not calculating in QBDT: QuickBooks Desktop calculates wages and/or payroll taxes incorrectly.

Should you need anything else about this or with QuickBooks Desktop, just let me know by leaving a comment below. Take care!

We are still having the same problem as well. My payroll updates are always up to date. Employees are entered correctly. When I pull the 15-T form from the IRS to see what quickbooks should be calculating, Quickbooks is incorrectly calculating Federal withholding (low amount) or not withholding at all. Anyone with 2019 W-4 and earlier are completely fine but anyone who has filled out a 2020 or later W-4 and we have switched it over in Quickbooks, they are being calculated incorrectly! This is ridiculous, this has been going on for over a year now to no resolution. I have also contacted customer service and got no definite answer or resolution after they remote accessed my quickbooks. I was told maybe it is because of this or maybe it is because of that. I am not getting anywhere and this needs to be fixed or a bunch of customers will go with another accounting software!! I need to be contacted when this is resolved.

I am having the same problem.  It seems it is definitely a problem with the new W-4.  You would think Quickbooks could have fixed it by now.  Very irritating.

I added additional $40. Of withholding to employee but it only took $20. How do I adjust to the $40./week or is there a limit for extra withholding?

Hey there, @Terrifbm. 

Thanks for following the thread and sharing your concerns. 

Since you're experiencing some issues with the amount of money being withheld, I recommend running Payroll Updates to ensure the payroll is up to date and receive the latest tax table. I've included some steps to update payroll below. 

1. Go to the Help menu.
2. Select Update QuickBooks Desktop.
3. Go to the Update Now tab and select Get Updates.

Once you have downloaded the updates, restart QuickBooks. Once QuickBooks has been restarted, go through the Pay Employees process. Please note, you may have to click on Update Payroll once more and let it update.

If you're continuing to have issues with the withholding after you've updated payroll, you may need to contact our Payroll Support Team. This way a payroll agent can review your account securely and take a look at the current setup to ensure everything is set up correctly. 

Here's how you can contact Payroll Support:

1. Press F1 on your keyboard or go to the Help menu at the top.
2. Select QuickBooks Desktop Help.
3. Enter Support in the search field.
4. Click the Contact us link at the bottom.

Ensure to review their support hours so, you'll know when agents are available.

As always, if you have any other concerns about QuickBooks, please feel free to visit the Community again. I'm always here to help. Take care and have a great day!

Hi,

Did quickbooks ever give you a solution?

I am having the same trouble....its calculating 0 federal withholding. 

I can help you resolve the error you're having to calculate your federal withholding correctly, @Bookkeeper4youuuu. 

As mentioned by my colleague above, the following factors may affect the tax calculation on your paycheck:

• The total annual salary.
• The gross wages of the employees.
• The tax table is not updated.

Just make sure to have the latest release and newest payroll tax table. This will make sure that you have the latest features and fixes and stay compliant with paycheck calculations in QuickBooks Desktop (QBDT). 

You can check the following article for detailed guidance on how to keep your software updated and get the newest payroll tax table:

• Update QuickBooks Desktop to the latest release
• Get the latest payroll tax table update

Then, make sure to set up your employees’ profiles correctly. QuickBooks calculates the federal withholding based on these factors:

• Taxable wages
• Number of allowances/dependents
• Pay frequency
• Filing status

To review your employees’ payroll information:

1. Go to the Employees menu and choose Employee Center.
2. Double-click the employee’s name and select Payroll Info on the left.
3. Please make sure the Pay Frequency is correct.
4. Click the Taxes button and in the Federal tab, review the Filing Status and Allowances fields. Make the necessary corrections.
5. Select OK and then OK again.

Here’s also an article that tells you more on how to fix payroll taxes that are not calculating:

• QuickBooks Desktop calculates wages and/or payroll taxes incorrectly
• How QuickBooks Desktop calculates taxes

Let me know if you need further guidance in resolving your federal withholding calculation by leaving a reply below. I’m always here to lend a hand.

I was able to "chat" with a QB Rep and they sent me this link to an Income Tax Calculator Spreadsheet. Surprisingly, when I filled it out, it calculated $0 for my employee (Set up in QB as Head of Household, $5000 for dependents). I spot checked some of my other employees (those using 2019 and before and those using 2020 or later W-4) and came up with the correct amount that was withheld on each paycheck. I am not sure why this new 2020 or later W-4 form knocks out federal withholding for these people/paychecks. My question is...will they owe big time once they file their taxes? Also, is it fair to those who filled out the form prior to 2019 and aren't receiving this change in withholding calculation? Because when I switched said employee above to the 2019 and prior option, he would have had about $300 withheld. It all seems strange to me. 

https://www.irs.gov/businesses/small-businesses-self-employed/income-tax-withholding-assistant-for-e...

Hello there, @CarHa.

I see the point you're making. For some reason, you'll need to contact our payroll support team to address your concern in a prompt manner. Our payroll specialist can provide you accurate details and a thorough explanation about the W4 federal withholding calculation in QuickBooks. 
 

Within your QuickBooks Company file, select QuickBooks Desktop Help from the Help menu. Then, give a brief description of your issue and click Continue.

Another way to contact our support team is by following the steps below.

1. Go to this link: Contact Us.
2. Choose your country and QuickBooks Desktop.
3. Enter a short description of your concern.
4. Click Search.

You can use this year-end checklist to prepare your tax forms in QuickBooks Desktop Payroll: Year-end checklist for QuickBooks Desktop Payroll.

Please let me know if you have other questions soon. Take care always and stay safe.

I have had the SAME issue with QB.

I have Contacted QuickBooks payroll assistant and they I have no idea.

They said if it’s not withholding anything then they don’t know anything. Wrong!!

Just like the other person said I have employees that are still using the 2019 or earlier that take out taxes with the same filing status.

please note users. Your employees Willow big time at the end of the year so I suggest doing what I did I put extra withholding in the $ it should take out for taxes.

The only drawback is when they miss work it will still take out the same with holding him out unless I go back and change it.

this has been a I’m going problem with QuickBooks and I can’t believe they have not fixed it by now. 
QuickBooks this is not an IRS issue.

QuickBooks this is not a user issue.

QuickBooks needs to do research on how their platform is set up and fix the issue.

Yes, same issue. Seem to have narrowed down only to employees that are married, filing jointly

I am curious: 

1) how did you switch back to 2019 and prior? At least in my version of QB Desktop, once you select 2020 W4 the 2019 is no longer selectable. 

2) Are you finding that it is only 'married, filing jointly' employees? If I switch them to 'Single', it withholds the proper amount. 

I have been struggling with this for months and ended up owing tens of thousands of dollars at the end of 2020 due to this issue, since I was paying the amount QB withheld. 

I spent several hours with support yesterday, with no resolution. However, for the time being I am switching all the employees back to 'Single' status so they have something withheld. 

I can help you isolate the issue you're experiencing with your tx withholdings, flyingplow.

Make sure you are on the latest version of QuickBooks Desktop and payroll tax tables so the system can calculate your taxes correctly. Further, the employees' setup is correct and updates to their payroll information within a quarter or year can also cause discrepancies with how the system posts their withholdings. 

You can try setting up the employees' info on a sample file with payroll and select the correct filing status. If it works, you can open your company file and perform the Verify and Rebuild Data Utility process. However, if the issue persists, you can run the QuickBooks Desktop Tool Hub. 

Feel free to visit these links for more details on how taxes are calculated in QuickBooks Desktop: 

• How QuickBooks calculates payroll taxes
• Payroll items on paycheck are not calculating or are calculating incorrectly

Let me know if there's anything else that you need help with. Take care!