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sue84
Level 1

My payroll is active, but not calculating tax withholdings

 
3 Comments 3
JonpriL
Moderator

My payroll is active, but not calculating tax withholdings

Hello @sue84,

 

Let's make sure you've used the latest release for QuickBooks and your payroll tax table to let the system calculate your employee's withholding accurately. Let me show you how.

  1. Go to Help.
  2. Select Update QuickBooks Desktop.
  3. Under Overview, select Update Now.
  4. Click Get Updates.

In addition, here's an article you can read to learn more about how you can update and install the latest release: Update QuickBooks Desktop to the latest release.

 

Once done, here's how you can update your payroll tax table so your taxes are calculated accurately.

  1. Go to Employees.
  2. Select Get Payroll Updates.
  3. Click Update.

To add, I've got you this helpful article for ideas about updating your payroll tax table: Get the latest payroll tax table update.

 

Lastly, I've got you this helpful article so you can keep up with the latest payroll compliance mandated by your local and national agency: Payroll Tax Compliance Links.

 

Keep me posted in the comments if you have any other questions. I'll be here to lend a hand. Stay safe!

Melody10
Level 1

My payroll is active, but not calculating tax withholdings

Successfully completed the recommendations per above but Paycheck detail remains all zeros. 2 weeks ago I updated my credit card info and am seeing the traditional charges to the CC account. It says I am active in green too.

Angelyn_T
QuickBooks Team

My payroll is active, but not calculating tax withholdings

Hi Melody.

 

Thank you for joining the thread, and I appreciate you for performing the troubleshooting steps instructed by JonprilL above. I'm here to share with you some additional information about tax withholding calculations.

 

There are few possible reasons why payroll taxes aren't calculating. Here are the following:

 

  • The total annual salary exceeds the salary limit.
  • The gross wages of the employee's last payroll are too low.
  • Ensure to run the latest payroll update to keep your taxes updated.

 

Please make sure your QuickBooks is in the latest version as well as your tax table. Then, review the employee's tax setup since it affects how QuickBooks calculates it. The system calculates the federal withholding based on these factors:

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

 

After running the update, I recommend refreshing your employee's paycheck to refresh the payroll information and calculate the taxes accurately.

 

Here's how:

 

  1. Open your employee's paycheck details or payroll information.
  2. Right-click the name of your employee which highlighted in yellow. 
  3. Tap on Revert Paycheck.

 

For additional resolution, you can check out these links:

 

 

Moreover, you can check out the topics from our help articles for more hints and resources while working with QuickBooks and payroll in the future: Find help articles, video tutorials, and more QBDT Payroll.

 

Please let me know how else I can help you with your paychecks. I'm always here to provide additional assistance. Keep safe!

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