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Mine as well. Did payroll deducted from checks but nothing for paying payroll taxes.
Good Morning, @scovey.
I hope you're having a great weekend so far. The reason why the Federal tax didn't pay today when you did payroll is because of the payroll tax deferral. This is available to employees who have wages and compensation of less than $4,000 in a given biweekly payroll period from September 1, 2020, to December 31, 2020.
However, you can read through this article for more detailed instructions on how to set up your payroll to track deferrals of the employer share: Stop or defer payroll tax payments.
If you have any other questions or concerns, don't hesitate to reply. I'm always here to lend a helping hand. Have a great rest of your weekend!
I do not want to defer taxes!!! Did QB just do this on their own?
I don't want to defer! Does QB just do it without being told???
Thanks for joining this thread, @mcs2.
I'll provide an update on the Presidential Memorandum related to payroll tax deferrals.
We always want to make sure we're compliant with the federal rules and regulations. The effective date of the deferral is September 1, 2020. We are in discussions with the IRS to gain insight into how this order will be implemented.
Right now, I'd suggest not doing anything in QuickBooks Online Payroll (QBOP) on an employee or employer level to remove these taxes. We'll have something in the system once we have more details from the IRS.
Also, I recommend reading this PDF guide to learn more about the Presidential Memorandum: Notice 2020-65.
You can always run any payroll reports to view useful information about your business and employees.
The Community and I will be around to help if you have other concerns. Keep safe.
Per my research businesses can opt-out. How do you opt-out on QuickBooks Payroll and continue with all of the normal tax withholding???
Hello there, Snelson2019.
The answer to your question would be Candice C's response. It is stated there that there are two steps for payroll deferral. First, you'll have to contact your state about the payroll taxes. Then, you can reschedule the state payroll tax payments depending on your payroll subscription. You can use this link for more details: Stop or Defer Payroll Tax Payments.
Aside from that, you might also find this article helpful in the future: 0.00 or No Income Tax Withheld from Paycheck.
You can also contact our Payroll Support Team to know more about it: Contact Support.
Let us know which part of the process that you'll need additional assistance. We'll be right here to further assist you.
I do not want, nor do my employees want to defer their payroll taxes. I cannot believe you implemented this without notifying me to see if this was even wanted. You will be placing an undue burden on my employees after the deferral to try to pay this additional tax. You need an opt - out option immediately.
OK, I posted I wanted to opt out of the payroll tax deferral, no taxes were withheld from my employees paycheck yesterday. This deferral is onloy supposed to affect Social Security and Medicare taxes, however no Federal withholding was taken out, the worst is no California taxes were taken out either. As far as I know this is illegal, we must collect State specific taxes so what are we supposed to do...did you simply turn off all taxes rather than address the issue of opting in or opting out? This is not a mandatory program, it wil hurt my employees down the road. I want my tax tables reinstalled so I can do what I want to do for my employees.
Hello @SandyVencill,
I appreciate you for getting back to us here in the Community. Let me share some information about running payroll in QuickBooks Online.
The system calculates your federal and state income taxes by following the IRS Publication (Circular E), Employer’s Tax Guide. There are several possible reasons why the taxes are not calculating when processing payroll.
It may be possible that the employees are not meeting the taxable wage base. Another reason is they were set to Do Not Withhold for federal and state income taxes in the employee setup.
To check the setup:
Also, you can run a payroll report to check the details of your employee. I suggest you use the Payroll Summary by Employee report to view a comprehensive report of wages, deductions, and tax info.
In case you need the steps, here's how:
If the same thing happens, I'd recommend contacting our Payroll Support Team. One of them will be able to review the details and assist you further in correcting your payroll.
Additionally, I recommend visiting the following article to learn more about recreating paychecks in QuickBooks: Create pay checks in online payroll.
Drop me a comment below if you have any other questions. I'll be happy to help you some more.
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