Major issued. QBs payroll deducted the same federal withholding 5 times. How did QB adjustments cause duplicated deduction 5x???

Hello, @inafl-cio.

When your year-to-date (YTD) deductions are incorrect, QuickBooks automatically catches up by correcting each of your employee's payroll calculations. Let's ensure that your QuickBooks software and payroll tax table is updated to the latest version. Once completed, let's run the payroll summary report so you'll see your employee's total deduction.

Here's how to run a payroll summary report:

1. Go to the Reports menu.
2. Select Employees & Payroll.
3. Choose the Payroll Summary.
4. Set a date range.
5. Click the Refresh button.
6. Remove the Hours and/or Rate columns.

Also, you’ll have to revisit your employees’ profiles if they are set up correctly. QuickBooks calculates the federal withholding based on these factors:

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

To review your employees’ payroll information, here’s how:

1. Go to the Employees menu.
2. Choose Employee Center.
3. Double-click the employee’s name, one at a time.
4. Select Payroll Info on the left.
5. Please make sure the Pay Frequency is correct.
6. Click the Taxes button.
7. In the Federal tab, review the Filing Status and Allowances fields. Make the necessary corrections.
8. Hit OK.
9. Click OK again.

If you've already verified the taxes setup on your employee's profile, you can check this article for other steps in fixing wrong tax calculation: QuickBooks Desktop calculates wages and/or payroll taxes incorrectly.

If the employee is overpaid on the last payroll, you can create a deduction item with a tax tracking of “None” and use it on their first payroll of the year.

Feel free to click the Reply button if you have other questions about calculating federal withholding in your employee’s paycheck. I’m always here to lend a hand.

@IamjuViel 

RE: When your year-to-date (YTD) deductions are incorrect, QuickBooks automatically catches up by correcting each of your employee's payroll calculations.

It does this for many fixed percentage taxes, like social security and medicare, federal and state unemployment.

It does not do this for federal withholding.

We have 30 people on our payroll.  Only on one employee the federal withholding will take out 3 to 4 deductions each payroll cycle and then we have to go in manually  and delete the extra federal withholding lines.  

We have check and rechecked to make sure his payroll is set up correctly.  After the check is created multiple federal withholding lines will show up in the additions, deductions and company contributions items, however it does not show up in the item list BEFORE we do payroll.  If we don't catch this before the check is printed it will just show the total Federal withholding amount (which is quite large).

Welcome to the Community space, Water5.

I'll walk you through the steps to ensure that federal withholding lines won't appear multiple times on your employee paycheck.

Duplicate tax items may have been added to the Other tab of the employee's profile, resulting in multiple withholdings. I know you've double-checked that your employee's payroll is properly set up. To resolve the issue, I recommend to recheck it and delete the duplicate tax item.

Here's how:

1. Go to the Employees menu, then choose Employee Center.
2. Double-click the employee's name.
3. Choose the Payroll Info tab.
4. Click Taxes button.
5. Select Other tab.
6. Delete the duplicate tax item.
7. Click OK.

If the problem persists, I recommend contacting our QuickBooks Payroll Support. They have tools check your employees set up and further investigate the root cause of the problem.

In addition, you can bookmark these guides for future reference. They provide an overview of why payroll items/taxes are being calculated incorrectly:

• Payroll items on paycheck are not calculating or are calculating incorrectly
• QuickBooks Desktop calculates wages and/or payroll taxes incorrectly

Please know that you're always welcome to post if you have other concerns. I wish you and your business continued success.