2020 W4

Thanks for sharing your concern with us, @Grace18.

For now, there's no open investigation related to this concern. However, I can assure you that QuickBooks is calculating taxes based on the guidelines and tax table provided by the IRS. 

You also have the option to manually edit the Federal Withholding amount in your employee's paycheck detail. Before doing so, I recommend reaching out to your accountant first for confirmation.

I also recommend double-checking your employee's Federal extra withholding if it's correct. I can assure you that we will be monitoring this concern and update this thread once an open investigation similar to this shows up.

If there's anything else I can do for you, please let me know. I'll be around to help you.

Hey there!  I am having the same issue...except, I have TWO ladies that have been hired using the new W-4 format and neither of them have had ANY federal taxes withheld and it was JUST brought to my attention.  So, we are now three months in and I am quite concerned about it as well.  I own and direct a child care center, and my poor ladies are not paid NEAR what they are worth, so their yearly incomes are not very good.  However, my other staff with the old W-4 forms have taxes withheld every week.  I am very confused and I cannot seem to find any helpful answers!  I pay for QB payroll so I do not have to worry about having to configure taxes and possibly make a mistake.  I am just wondering if due to the lower salaries we are dealing with, will it only begin to withhold when they reach a specific income amount????  That is the only possibility I can figure....soooooo, hopefully, we will get some answers soon!

Hello, @MandiBliss322.

I appreciate the complete details you've provided. Let's ensure that your payroll tax table is updated as well as your QuickBooks software. 

Here's how:

1. Go to Employees.
2. Choose Get Payroll Updates.
3. Click to select Download the entire payroll update.
4. Select Update.
5. Click Close.

    

   

Once your payroll tax table is updated, close your QuickBooks company file to make sure all of your payroll components are updated. You can read through this article for more detailed steps: Download the latest payroll tax table.

If the issue persists, I'd suggest contacting our Payroll Support Team. A payroll specialist will be able to check your account details on a secured environment and review your W4 data via secured remote access session.

Keep me posted if you have other about about payroll. I'd be happy to help you more and answer all your inquiries. 

I am having the same problem!  Very frustrating!  I have a new employee and set him up with the new W4 and he just told me that he is not getting any federal taxes taken out.  His last few checks were around $400 gross and no taxes were taken out.

Let me provide some information about what's causing the federal taxes not withholding on your employee's paycheck, lisa2005.

Payroll tax calculations are derived from the employee's payroll data you entered in QuickBooks. Before performing some troubleshooting steps, let's make sure we updated the tax table to the latest release.

Then, let's revert your employee's paycheck to refresh the payroll information for the taxes to calculate.  The Revert option only shows if you're still on the process of running payroll. 

Here's how: 

1. Go to Employees on the top menu.
2. Choose Pay Employees.
3. Select Scheduled Payroll or Unscheduled Payroll
4. Right-click the name of your employee which highlighted in yellow. 
5. Tick Revert Paycheck.

For more details about this one, you can check out this article: How to save or revert pending paycheck.

To learn more about how QuickBooks calculates payroll taxes, just check out the How QuickBooks calculates payroll article.

If you already gave the paycheck to your employee, QuickBooks auto-correct taxes with discrepancies on your next payroll to update the employee's wages and contributions.

For other troubleshooting steps option about QuickBooks not calculating the payroll taxes, just refer to this article: QuickBooks Desktop calculates wages and/or payroll taxes incorrectly. 

You can also check out this article if payroll items are not calculating: Payroll items on paycheck are not calculating or are calculating incorrectly

I have a link here that provides you with articles about managing your payroll in your account: https://quickbooks.intuit.com/learn-support/en-us/payroll-management/07?product=QuickBooks%20Desktop....

Keep me in the loop if you need a hand with running employee's reports or any QuickBooks related. Wishing you and your business continued success. Keep safe always. 

I have Quickbooks desktop 2020 and when I enter a new employee, it still gives me the old input options for claimed dependents and no option to put in a dollar amount. I updated payroll and I did a desktop update and there was no change. How can I get the new input screens?

Did we ever get a resolution for this.  I am having the same issue.  All my new employees that I use the new 2020 w4 for does not have federal taxes taken out.  They are set up as single or married filing separately and all 0 below that.  I have updated my payroll. Reverted paycheck and redid after that as stated in another comment.  They are making enough where taxes should be taken out.  How do I get it to calculate federal taxes?

It's my pleasure to be your QuickBooks Payroll guide,  Bobbie,

There are a few reasons why taxes won't calculate properly on the paychecks. Consider the following:

• QuickBooks is not updated, or an internet interruption occurred during the update.
• Using an incorrect tax table version.
• Employee's Year-To-Date is incorrect.
• QuickBooks is doing a catch up for an overpayment.

To correct this, let's make sure you're able to download the latest tax table update version 22112. You can check that by following these steps:

1. Go to the Employees tab, and select Get Payroll Updates.
2. You'll see the tax table version beside the Payroll Update Info button. (Please see sample screenshot.)
   
   

Next, review the status of the Payroll if it is showing active in the company file. Here's how:

1. Go to the Employees tab and select My Payroll Service.
2. Pick Manage Service Key from the list.
   
3. In the Status column, verify if it says Active.
4. You can also view your subscription status by pressing Ctrl + K on your keyboard.
5. If the status says Active, click the Edit button.
   
6. Click Next.
7. Uncheck the Open Payroll Setup - I want to start right tick box.
8. Click Finish.

If it's correct, review any discrepancy on the employee's paycheck. We can use a Payroll Detail Review report to verify the taxes withheld and the difference. Here's how:

1. Go to the Reports menu, and pick Employees & Payroll from the list.
2. Select Payroll Detail Review.
3. At the top of the report, click on Customize Report button.
4. From the Display tab, select a date range from drop down list or fill out the From and To dates.
5. Proceed to the Filters tab. Find Payroll Item from the list and tap Multiple payroll items. (See screenshot.)
   
6. Select the taxes that are not calculating. (Example: Medicare Company, Medicare Employee, Social Security Company and Social Security Employee).
   
7. Once done, click OK twice.

On the report, review if the payroll checks have the correct deductions. You can get the correct calculation by multiplying the total wage base of each payroll item by the corresponding tax rate.

If QuickBooks did overwithheld any taxes, you can create a liability adjustment to correct the taxes. Here's an article with the complete steps on how to create an adjustment: Adjust payroll liabilities.

Once done, try to process the payroll again and see if the taxes is withholding correctly. If not, I highly recommend contacting our Payroll Support this time to report the problem.

Here's how you can connect with us:

1. Open QuickBooks.
2. Go to Help, then select QuickBooks Desktop Help.
3. Select Contact Us.
4. Enter your concern, then select Continue.
5. Choose a way to connect with us:
   • Post a question and get an answer from expert and other customers.
   • Start messaging with a support expert.
   • Get a callback from an expert (availability may be limited).

You can also chat our support online. Select your product and fill out the form to chat with an expert by clicking this link here: Do It Yourself Payroll Chat Support

If you need further help or have other questions with the payroll tax calculations in QuickBooks. Leave a comment below and I'll be glad to help. Have a productive week! Take care.