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amanda-bratcher
Level 1

Can anyone think of a reason my QB payroll wouldn't deduct federal taxes from one employee? I have several employees with the same W4 and don't have this issue.

 
1 Comment 1
Michelle_b
QuickBooks Team

Can anyone think of a reason my QB payroll wouldn't deduct federal taxes from one employee? I have several employees with the same W4 and don't have this issue.

Hi there, @amanda-bratcher.

 

Thank you for posting here in the Community. I want to make sure the employee's federal taxes will deduct to his/her paycheck.

 

We have possible reasons the federal taxes wouldn't deduct to your employee's payroll.

 

  • Your employees' payroll taxes are not setup in their profiles
  • Were set to Do No Withhold
  • The gross wage of the employees are too low

 

Let's go to the employee's profile to check the setup. Here's how:

  1. Select the Workers menu on the left side. 
  2. Double click the name and click the Edit button beside Pay.
  3. Hit the Pencil icon perpendicular in the What is [employee's name] withholdings?.
  4. Make sure the federal status is not Do No Withhold.

withold.PNG

For more information about the process, check out this article: 0.00 or no income tax withheld from paycheck.

 

Once you've verified that the set up is correct, I suggest checking the Payroll Tax and Wage Summary report. It shows detailed information about how QuickBooks calculates tax amounts on employee paychecks and the wage base limit for each employee's tax.

 

Let me guide how:

  1. Go to the Reports tab located on the left pane. 
  2. Type Payroll Tax and Wage Summary in the search box and enter. 
  3. Customize the Date range and hit Run Report
  4. Click the Federal Income tax under Federal Taxes (940/941).

federal.PNG

For the detailed guide, you can use this article: Payroll tax wage bases and limits.

 

Please browse through this article: Set up payroll. This link contains the steps on how to complete Form W-4, adding pay type, and other related topics in Quickbooks Online Payroll. 


Let me know if you have follow-up questions. I'm always here to help.  

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