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RCEA
Level 1

Federal tax withholdings and payroll update #22112

Hello, 

I downloaded the payroll update #22112, dated June 24, 2021 and there is a significantly higher amount being pulled on my employees' federal tax withholding. The only backup I could find for this payroll update said that it was for the new federal tax withholdings effective 01/01/21. Why was this update just released for new numbers implemented so long ago? Does this mean that my employees were all underheld until now? I have a couple who are rather upset about the drastic change to their net pay. Can anyone explain why it is just effective now?

4 Comments 4
JenoP
Moderator

Federal tax withholdings and payroll update #22112

Let me help with your question about payroll tax calculation in QuickBooks, RCEA.

 

The latest payroll update includes other changes for New Hampshire and does not include new calculation for federal withholding. Here's an article where you can see all the details of the recent update: Latest Payroll News and Updates

 

Most of the time, changes to the calculation of federal withholding are caused by modifications made to the employee's filing status. Follow these steps on how to review the details and make sure everything is correct:

 

  1. Go to the Employees menu, then select Employee Center.
  2. Double-click on the employee’s name.
  3. Go to the Payroll Info tab, then select Taxes.
  4. Check the Filing Status under the Federal tab.

 

Feel free to take a look at this article for additional guidance and reference when it comes to questions about tax calculations:

 

 

The Community is always here to help if you need anything else. Just reply below or post new questions and we'll be glad to answer them for you.

JenoP
Moderator

Federal tax withholdings and payroll update #22112

Hi RCEA,

 

Hope you’re doing great. I wanted to see how everything is going about the federal withholding calculation. Was it resolved? Do you need any additional help or clarification? If you do, just let me know. I’d be happy to help you at anytime.

 

Looking forward to your reply. Have a pleasant day ahead!

RCEA
Level 1

Federal tax withholdings and payroll update #22112

Hello, 

No, that did not fix the issue - every single one of my employees had a significant rise in their federal withholding, and none of them made a change. The only difference between the payroll before and this was the tax table update. 

Mark_R
QuickBooks Team

Federal tax withholdings and payroll update #22112

I appreciate you getting back to us, @RCEA.

 

I want to make sure your issue about your employee's federal withholding gets resolved so you can get back to working order.

 

Before anything else, were you able to review the previous paychecks of your employees to verify if the deduction for federal withholding is correct? If you haven't yet, let's run the Payroll Details Review report to check. Here's how:

 

  1. Open your QuickBooks Desktop.
  2. Go to the Reports menu, then select Employees & Payroll and choose Payroll Detail Review.
  3. Review the federal withholding deduction.

 

I'm adding this article for more guidance: QuickBooks Desktop calculates wages and/or payroll taxes incorrectly.

 

However, if the amount deducted from your employee's federal tax withholding is accurate, I suggest reaching out to our QuickBooks Payroll Support Team. This way, they can further check on this matter and provide additional troubleshooting steps to get this fixed. To reach them, please follow the steps below:

 

  1. Go to the Help icon and select QuickBooks Desktop Help.
  2. Click Contact Us.
  3. Write your concerns in the description box, then select Continue.
  4. Select which one of the support options you'd like to use.

 

You can also check out this article for another way of reaching out to our support team and its support hours: QuickBooks Desktop Support.

 

You might also want to learn how to run a payroll checkup in your QuickBooks Desktop. Here's an article you can read for more details: Run payroll checkup.

 

Should you need any assistance running payroll in QuickBooks Desktop, I'm available here to help any time!

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