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TestLab2020
Level 2

My employees' last biweekly paychecks have no federal income tax withheld. They worked 4 hours this pay period in WA. Why isn't QB withholding income tax for this check?

I spent an hour on the phone with QB Payroll support and all he could tell me in the end was to visit PayCheckCity.com to prove that no federal income taxes should be withheld from this paycheck. Their 1/4/21 paycheck did have federal withholdings but this last 1/22 paycheck didn't. Can anyone help explain this to me?
3 Comments 3
Jen_D
Moderator

My employees' last biweekly paychecks have no federal income tax withheld. They worked 4 hours this pay period in WA. Why isn't QB withholding income tax for this check?

It's good to have you here, @TestLab2020,

 

Allow me to share some insights about this problem you're having.

 

Federal and state income tax in QuickBooks are withheld in accordance with IRS Publication (Circular E), Employer’s Tax Guide. If you see a paycheck with no income tax withheld, it's possible that this employee did not meet the taxable wage base.

 

Our system automatically detects any entries with gross wages that are too low to be taxed. You will need to review the paycheck and see the employees gross pay and tax status.

 

The employees filing status, pay schedule, apart from their gross pay determines the taxable wages. Not meeting the taxable wage base will likely result to  $0.00 withheld taxes on paychecks.

 

To learn more about this, kindly check out this article: 0.00 or no income tax withheld from paycheck

 

If you need anything else, please let me know in the comment below. Have a nice day!

Mitchgold6244
Level 1

My employees' last biweekly paychecks have no federal income tax withheld. They worked 4 hours this pay period in WA. Why isn't QB withholding income tax for this check?

My employee just began and received a 750 check and no federal witholdings came out and she did not select exempt and everything is entered correctly. should I just wait another payroll cycle'?

JoesemM
Moderator

My employees' last biweekly paychecks have no federal income tax withheld. They worked 4 hours this pay period in WA. Why isn't QB withholding income tax for this check?

Glad to have you in the Community, @Mitchgold6244.

 

The income tax calculations in QuickBooks Online (QBO) are derived from your employee's payroll information.  

To start with, you may need to review and update your employee's information as these are the key details that allow the system to calculate your taxes accurately. These are:

 

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

 

Once done updating them, we can try creating a payroll to check the changes. Learn more about your employee's federal taxes with this article:  Federal and State Income Taxes are Withheld under IRS Publication.

 

Also, you can consult with your employee on when to deduct the Federal Tax. This way, you can apply the taxes on the next payroll or delete recreate the paychecks. You can refer to this link here for more information: Delete or void paychecks.

 

For future reference, you can bookmark these guides. They provide an overview of why payroll items/taxes are calculating incorrectly.

 

 

You’re always welcome to get back to me if you have other queries in mind. I’ll be around ready to assist you. Keep safe.

 

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