How come federal taxes aren't being taken out of my check?

@lavida-lavidafea  Depends on how much your gross pay is per pay period and the filing status you claimed.

There's a bit more that goes into it, but in effect, if your gross pay multiplied by the number of pay periods per year does not exceed your standard deduction, it won't expect you to owe any federal taxes and so will not hold any federal taxes out.

If you want some held out anyway, enter that amount into Extra Withholding in your employee setup; there's a line on the W-4 specifically for that.

You may see $0.00 for federal or state withholding on an employee's paycheck if they claim exempt status or if their wages fall below the minimum threshold, Lavida. Let’s review your employee setup to determine if they qualify for income tax deductions in QuickBooks Online (QBO).

In QBO, whether federal and state taxes are withheld from employees’ paychecks depends on their tax status; those marked as Exempt or Do Not Withhold will not be liable to these taxes.

Therefore, let's ensure setting up the appropriate tax status for your employees. Here's how:

1. Go to Payroll, then select Employees.
2. Locate the employee and click on their name.
3. Under the Tax withholding section, select Edit.
4. Choose the appropriate option from the Filling Status dropdown for Federal Withholding and State Withholding.
5. Once done, click on Save.

Please note that employees who have not reached the minimum threshold do not have to pay state and federal taxes, even if they are not tax-exempt.

If you need to correct a mistake, you can change their filing status to the appropriate option. For more detailed information, read this article: Troubleshoot no income tax withheld from a paycheck.

Additionally, you can generate payroll reports to gain insights into your expenditures, including employees' wages and contributions, which will be helpful during tax filing.

Furthermore, Explore QuickBooks Payroll if you're interested in taking payroll processing to the next level. Time-tracking features and faster direct deposits can be a game-changer for your business.

If you have questions about payroll tax withholding or other QuickBooks Online issues, please update us in the forum. We're always here to provide further assistance.