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grandpasfeed
Level 1

Federal Tax Deduction is not coming out of check

I have 5 employees and one of them we realize is not having her federal taxes taken out of her check.  All the info is entered correctly.  She has filed married filing jointly.  But as far back as June, no federal takes have come out of her paychecks.  Any ideas as to why?

7 Comments 7
LieraMarie_A
QuickBooks Team

Federal Tax Deduction is not coming out of check

I'm here to make sure the employee's federal taxes will deduct from his/her paycheck, @grandpasfeed.

 

Do you know if these employees are meeting the wage bases set by the IRS? You can click on this link to learn the wage base limit: Topic No. 751 Social Security and Medicare Withholding Rates

 

It is also possible that their W-4 status has been set to 'Do Not Withhold' by mistake. Here's how to check if an employee was set to Do Not Withhold (Exempt):

  1. Navigate to the Payroll menu and select the Employees tab.
  2. Click the name of the employee.
  3. Under the What are [employee's name] withholdings section, click the Pencil icon. 
  4. Make sure the federal status is not Do No Withhold (exempt).
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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 press Enter
  3. Modify the date range and click Run Report
  4. Click the Federal Income tax under Federal Taxes (940/941).

 

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

 

Please let me know if you need further assistance with payroll. I'm always around to help. Have a good one.

grandpasfeed
Level 1

Federal Tax Deduction is not coming out of check

I checked all the info you gave me and everything is in place like it should.  Not sure what the deal is, but thanks for the info.

 

 

MaryJoyD
QuickBooks Team

Federal Tax Deduction is not coming out of check

It's our pleasure to help, @grandpasfeed.

 

Since all the information is correct and there's still no federal taxes coming from your employees' paychecks, I suggest reaching out to our Customer Support. They can check your account in a secure environment, isolate the issue you're having and help you resolve it. 

 

You can reach our Customer Support for QuickBooks Online (QBO) by going to the Help icon at the top right of the account. Follow the steps below: 

  1. Go to the Help icon to connect to a live support agent. 
  2. Provide us some information about your concern.
  3. Select the Contact Us button and provide some details about this concern, then on the  Let's talk button. 
  4. You'll now be provided options on how to connect to our Customer Support. 

Here's the contact the QuickBooks Online Customer Support team article for more information. You can also check on the following article to know the different types of support we offer and its availability: Support hours and types.

 

You can always get back to me if you have questions or other concerns by leaving a comment below. I'm always here to assist. Have a great rest of the day.

CarlamDecker
Level 1

Federal Tax Deduction is not coming out of check

I have 11 employees  that federal   withholding is not coming out. Is this a QB  problem?

Rasa-LilaM
QuickBooks Team

Federal Tax Deduction is not coming out of check

Thanks for following this thread, CarlamDecker.


I want to ensure the federal withholding is deducted from your employees’ paychecks. This is to ensure your taxes and forms have the correct information.


When the federal withholding is not calculating, check your workers’ profiles and make sure they’re set up properly. QuickBooks Online calculates the federal withholding based on these factors:

 

  • Taxable wages
  • Number of allowances/dependents
  • Pay frequency
  • Filing status

 

Here’s how:

 

  1. Tap the Payroll menu on the left panel to choose Employees.
  2. From the list, click on the worker’s name to see more details.
  3. Choose the Employee details tab and hit the Pencil icon for Pay.
  4. Navigate to the What are (__) withholdings? section and click the Pencil icon to open the Payroll Taxes Setup and Compliance page.
  5. Review the information and make sure the Federal filing status is not set to Exempt.zero income.png
  6. Press Done to close the page.
  7. We’ll have to perform the process for all eleven employees.

 

For additional resources, here’s an article that provides detailed information on why a paycheck shows $0.00 or no income tax withheld. It includes detailed instructions on how to review your workers’ filing status: Self-help guide.


Stay in touch if you have additional questions or concerns about QuickBooks. I’ll be right here to answer them for you. Have a good one.

SambrinaB
Level 1

Federal Tax Deduction is not coming out of check

Hello I all so are having this same problem I am currently working at family dollar as a Assistant Manager and I have been here a year and I was not able to file because nothing was being taken out. I have tried everything and nothing is working 

JessT
QuickBooks Team

Federal Tax Deduction is not coming out of check

Thank you for joining in on the thread, SambrinaB.

 

I know that having the correct calculation for taxes is very important for filing your returns.

 

I see that my colleagues have already shared articles and stated the reasons why taxes will not calculate, and I believe you've checked your employee's setup as well. For these reasons, let me route you to our Payroll Support so they can start with a screen sharing session to find the root cause of the issue.

 

If you have other concerns with payroll, feel free to reach back out. I'll be here to assist you again. Take care!

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