Just on 'Help' for an hour with no resolution. Has anyone had this resolved? Please list how you fixed it.

Did you find a solution? Please post as im having the same  problem and QB isnt helping

Hi there, Optimum. I'd be more than happy to help you with your W-4 not calculating its federal withholding.

Initially, you'll want to confirm you're using the latest version of QuickBooks and your payroll tax tables. This enables the system to calculate your taxes properly.

If the federal withholding continues not to calculate while everything's up-to-date, you can use your Verify Data utility to see if anything needs to be rebuilt.

Here's how:

1. Choose Window, then Close All.
2. In your top menu bar, go to File.
3. Click Utilities.
4. Select Verify Data.

After verification's complete, you'll see one of a few possible messages. I've listed each of them and their meanings below:

• "QuickBooks detected no problems with your data," - No action is required.
• "Your data has lost integrity," - This indicates that there's data damage in your company file. You'll want to perform a rebuild to correct the problem.
• An error message could display. If so, there might be an article about it. Try searching Intuit's QuickBooks Desktop support site for specific instructions.

In the event no problems were detected with your data, you can perform some additional troubleshooting with the QuickBooks Tool Hub.

If your federal withholding still isn't calculating, I'd recommend continuing to work 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:

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 a callback or Message Us to start an instant messaging session.

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

If there's any questions, I'm just a post away. Have a wonderful day!

Obviously QB hasn't corrected the glitch because I've been experiencing it with employees who completed the W4 2020 and after.  It seemed to correct itself if the employee was able to check the little box in Step 2 of the W4 part C that states there are only 2 jobs held in the household, but for my single employees who can't check that box, it isn't taking anything out of federal withholdings.

Same problem here. QB support told me to take it up with the IRS. I find it hard to believe taxes owed for the year on $24,000 is ZERO!! Time to find a new payroll provider. Wish I had caught this sooner and not when I was printing all my W2s. 

Update from what my accountant told me: The new system "2020 or Later" doesn't pull any federal taxes until the standard deduction is reached. So a single filer won't have taxes pulled until they exceed $12,550, married filing jointly $25,100 and so on. He did mention if BOTH spouses are filing jointly and making similar incomes you must select the "Two Jobs Only" box (step 2 on the W4 form) in QuickBooks so the system knows that married jointly employee isn't the only wage earner and taxes properly.

Why QBs support can't explain it this way is beyond me. Hope this helps someone.

Not sure if this works but it makes sense. I will try this solution if the problem occurs again. My employee was only temporary when this situation originally occurred.

Quickbooks support usually blames the customer first and generates a response about properly inputting info. The answers from users like yourself are very helpful!

Did anyone ever get a solution for this problem?  I'm having the same issue!  

PLEASE HELP!! 

This was brought to my attention after giving employees' their 2021 W2 as I was a new PR person with the company.  I have spoken with several people and have not received instructions as how to get this corrected.  If you could please reach out to me via email I would appreciate it.  [email address removed]

I fully understand what you are going through!  All of my taxes are not computing correctly.  I may have 1 check in the whole run that is correct. I have talked with intuit several times and have gotten several solutions recommendations but to no avail.  I am at my whit's end!!! I have reviewed all of my empolyees set up, W4, and payroll information and I don't find anything wrong.  If I run the check in Online and duplicate it in Desktop there are two different amounts deducted.  Something is not right1

Thank you for saying that!

This isn't the experience we want you to have, RC434.

I see the value of W4 Federal Tax Withholding in QuickBooks Desktop (QBDT). However, MAy I ask for additional information or screenshots of the issue you encounter? This way, I can present an accurate solution.

Don't hesitate to come back to add extra information. Please know I'm always around to help with any QuickBooks issues you may be having. Have a good one! 

I can't believe how long this has been going on!!  I now have ONE VERY ANGRY employee because I was told 6 months ago that I had to figure out his tax, BY HAND, based on tax table publications (which by the way I pay YOU for these tax tables so it should be done for me) and I did not figure out enough. You keep saying "threshold", when you are talking about the Standard Deduction. We have ALWAYS had a Standard Deduction, but that deduction doesn't come into play until the employee does their tax returns at the end of the year!!! Your tax tables for the new W4 are not allowing any tax to be taken out until they've reached the Standard Deduction!! This never happened before on the old W4's.. That deduction before 2019 was 24,400. The way you are doing this for the new W4, forces employees to get used to a certain dollar amount on their paychecks, and then when they reach the "threshold" standard deduction, they suddenly get tax taken out, and their paychecks, that they were used to getting, suddenly decrease, and they are scrambling to pay their bills!!!  You have GOT to change this!!! The only change the IRS made was they increased the Standard Deduction but took away the exemption for the employee and their spouse. That was done on the tax returns...  Not one single person filing tax returns, in my entire life, has paid tax on the first Standard Deduction plus exemptions for themselves, spouse and children. You still need to have tax withheld from your paychecks, some people have interest income or other investment income they have to cover for also!!!

P.S. Anybody who makes more than the standard deduction is going to pay taxes, but they would much rather spread those taxes out over the whole year, not try to condense collecting them into a six month time period. I am looking at a W4 right now and it does not say ANYWHERE not to withhold tax until they reach the standard deduction amount, or "threshold" as your customer support people keep calling it. This was taken from the IRS website: 

There is no threshold amount for withholding taxes from an employee's wages. As an employer, you're responsible for withholding taxes on every employee's wages from day one based on the information the employee provides to you on Form W-4. However, there is an income threshold that employees must reach before they are required to file federal and state tax returns.

This "threshold" your people keep talking about only has to do with when the employee is required to file tax returns. You, QB, do not know what that employee has for other income than just a paycheck, so you need to only worry about taking taxes out and let that employee worry about what they get refunded at the end of the year or if they owe more.

The thing I can't seem to make QB understand is that the "threshold" amount they keep talking about is the Standard Deduction!! We have ALWAYS had a standard deduction. That is taken care of on the tax returns the employee files!! What they're attempting to do now is causing employees to get used to a certain dollar amount on their paychecks and then they suddenly hit that Standard Deduction amount, and BOOM they now have fed tax taken out and their paychecks are suddenly around 80 bucks a week lower!! They're now scrambling to figure out how to pay bills, when they live paycheck to paycheck, because they were counting on a certain dollar amount. I have a guy who worked somewhere else for the first six months of 2022, so he ALREADY MET THE THRESHOLD at that other job, and for the past six months I had to do the lengthy form to estimate his withholding based on the tax tables, and now we don't thing enough was withheld. What the HELL am I paying for payroll tax tables for.

And to make matters worse, this employee wants to use the older version of W4 now, because of this, but I can't even change it in my employee file on QB, the option to pick which W4 is used, is greyed out and can't be changed if you have chosen 2020 W4 or newer. The only way would be to create a new employee and abandon the old one, which I can't do now because I've already created paycheck this year and submitted payroll taxes to the IRS. I can recreate the paycheck under the new employee because the payroll taxes are tied to the old paycheck so I can't delete it

Has this been solved yet?  Any suggestions for the new year?  This is shameful that the issue has gone on so long and QB has not fixed it.

We understand the importance of accurate payroll tax calculations, suncorp. I'll provide the main key points we need to check to ensure the accuracy of employees' federal and state withholdings.

First is to review your employee’s federal (W-4) and state withholding forms (if applicable), which will determine their tax calculations based on various factors:

• How much your employee is paid
• How often your employee is paid
• Marital status
• Number of dependents
• Other sources of income

Next, check your employee's tax setup in your payroll product. Ensure that their filing status and other relevant fields align with their W-4 or state equivalent forms. If their filing status is set to Exempt or Do not withhold, taxes won't be deducted from their paycheck, regardless of their earnings. If they shouldn't be exempt from tax withholding, you can update their filing status accordingly. Please refer to this article for the complete guide: Enter federal Form W-4 in QuickBooks Payroll. 

For more details about finding out why your employee’s federal or state income tax is $0.00 in QuickBooks, you can check out this article: Troubleshoot no income tax withheld from a paycheck.

Additionally, QuickBooks offers a selection of reports that can help you manage your payroll and keep track of employee expenses. To guide you in customizing them to get the information you need, you can check out this article: Run payroll and employee reports.

Please let us know in the comments if you have other payroll concerns or questions about federal and state taxes in QBDT Payroll. We'll get back to you right away to assist you further.