federal income tax not accruing

Hello there, Ted. I've got steps to help you fix your payroll tax concern.

First, check your employee’s federal and state withholding forms. In QuickBooks Online (QBO), the paycheck may show no income tax withheld due to various factors affecting your employee’s federal or state withholding tax calculations.

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

Next, verify your employee's tax configuration in the payroll system to ensure that the filing status and all other relevant fields correspond with the information provided on your employee's W-4 or equivalent state forms.

Here's how:

1. Go to Payroll, then Employees.
2. Choose your specific employee.
3. From Tax withholding, select Edit.
   
   
   
   
4. In the Federal Withholding section, fill in the applicable info from your employee’s W-4.  If they claim exemption on their W-4, in the Filing Status dropdown, click Exempt.
5. When finished, select Save.

If you have verified all the information but the issue persists, I recommend contacting our Live Support team for further assistance. With the help of their tools, they can look into your account and investigate why this issue is occurring.

Additionally, after running payroll in your QBO account, you can pull up payroll reports to have an overview of your business finances. You can refer to this article for guidance: Create a payroll summary report in QuickBooks.

I'll be around if you have follow-up concerns about payroll taxes. Just return to this forum anytime and We'll be glad to assist you.