Showing results for 
Search instead for 
Did you mean: 
Not applicable

My payroll is not taking out federal taxes

1 Comment
QuickBooks Team

Re: My payroll is not taking out federal taxes

Let's go ahead and isolate why it's not calculating the federal taxes, Bjones317.


Our program calculates the tax based on these factors:

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

Then, these are the possible reasons why it's not taking out the taxes:

  • Annualized salary exceeds the salary limit
  • The gross wage of the employees are too low

Let's try to manually calculate the employee's paycheck, then verify if it matches with QuickBooks Online. To help us compute the exact withholding amount, go through the IRS 2018 Publication 15, and use the Percentage method (page 44-45). This is the same method used by QBO to calculate the federal taxes.


You can tag me if you need more help. I'll help you in any way I can.