Hi there, @AmandaM915.
I'll provide some information about why payroll taxes are not deducted from your employer's paychecks.
There are several reasons why payroll taxes are not being taken out of paychecks:
• The total annual salary exceeds the salary limit.
• The gross wages of the employee's last payroll are too low.
• The payroll tax table is not updated before running payroll.
To fix the issue, I suggest performing some troubleshooting steps by refreshing the payroll service and updating the tax table.
Let's open first the company file and go to the Account Maintenance page. Please follow the steps below.
1. On the Employees tab, scroll down and pick My Payroll Service.
2. Choose the Account/Billing information option.
3. Enter your Intuit user ID and password.
4. Go to the Service Information section and check the Service Status.
5. If it shows as Suspended, hover your mouse to the Annual Billing Details section and enter the credit card information.
6. Click on Save.
After that, you can proceed with downloading the most recent QuickBooks Desktop software release and the latest tax table version. This is to ensure your payroll service will get the most current and accurate rates for supported state and federal tax tables.
If the problem persists, I recommend reverting the paychecks. This helps to refresh the payroll information and for the payroll taxes to calculate.
Here's how:
1. Go to the Employees menu.
2. Select Payroll Center.
3. Go to the Pay Employees tab.
4. Click the Resume Scheduled Payroll button.
5. Right-click the employee's name, then select Revert Paycheck.
6. Submit payroll when you're ready.
Once done, select the employees, then click Open Paycheck Detail. Check if the taxes are already calculated.
If the issue continues to occur. you check these articles for additional troubleshooting solutions when payroll taxes are not calculated in the paychecks:
• Payroll items on a paycheck are not calculating or are calculating incorrectly
• QuickBooks Desktop calculates wages and/or payroll taxes incorrectly
Feel free to reply to this post if you need a hand with running employees' payroll reports. I'll be here to help.