cancel
Showing results for 
Search instead for 
Did you mean: 
cloudybeau
Level 2

Federal Income Tax Not Correct?

Since switching over from Quickbooks Desktop to Quickbooks Online, it appears that Federal Income Tax is not being deducted correctly. Every employee has a significantly lower amount being taken out for Federal taxes vs what was taken out before with Desktop. All the employees are set up the same as they were in the Desktop version. How can this be fixed?

1 Comment 1
Michael K
Moderator

Federal Income Tax Not Correct?

Thanks for reaching out to the Community, @cloudybeau.

 

Happy to help out here. QuickBooks Online and QuickBooks Desktop both use the same tax tables for calculating withholding, so if you've noticed a difference in calculations between the two, it may be a configuration issue with the employees. Keep in mind also that the IRS has updated the way that the W-4 calculates withholdings, so that may be contributing to the difference. I recommend reaching out to your accountant to ensure all of your Payroll Setup information is correct. They have the skills and knowledge necessary to make sure you don't have any problems.

 

For more information on the changes the IRS implemented this year, I recommend checking out: https://quickbooks.intuit.com/learn-support/en-us/set-up-employees/what-s-changing-with-the-federal-...

 

Hit the Reply button below if you have any other questions. I'll be happy to help. Have a wonderful day!

Need to get in touch?

Contact us