cancel
Showing results for 
Search instead for 
Did you mean: 
peachlove
Level 1

My QB desktop payroll tax calculation wrong

Hello,
I am using QB Desktop, it calculates payroll taxes wrong. It calculates wrong some employees, such as CA - Unemployment, CA - Employment Training Tax are "$0.00". Also, Medicare, Social Security, and Federal Unemployment taxes are wrong calculated lower than the rate for some employees. So, even though I pay for the payroll service, I calculate manually every pay period. If this problem not solved, I have a plan to change other accounting program. Anybody can give me a recommendation better software than Quickbooks?

2 Comments 2
BigRedConsulting
Community Champion

My QB desktop payroll tax calculation wrong

It's very unlikely that the taxes are calculated wrong, though the results may not be what you expect because of an incorrect payroll item configuration or out of balance YTD Payroll, or because the employee has hit the limit for the tax, where the tax has a limit.

 

If, for example, the YTD tax for a percentage tax like SS, Medicare, and CA Unemployment is it too high on previous paychecks, then the tax may be smaller or $0 on the current paycheck. This is because QB calculates the taxes on a YTD basis, including all of the other wages and tax amounts, to arrive at the current tax. 

 

So, for example, if the tax rate is 10% and the sum or the paid taxable wages for the year is $100 and yet the tax is $20, then if you create another check for $100 the tax will be $0.

 

Similarly, if in this case somehow the tax recorded is $0, then the tax on the new check will be $20.

 

You can review each tax for each employee and see the taxable wages and tax amount recorded per paycheck as well as what QuickBooks thinks the tax should be and the difference using the Payroll Detail Review report. It also shows if the tax amount was calculated by QuickBooks or if the user overrode the tax amount.

 

That report can help explain why you're seeing what you're seeing.

peachlove
Level 1

My QB desktop payroll tax calculation wrong

Dear Big Red Consulting,

 

First I do appreciate your answer.

However, still I think my QB is calculating wrong. I attached 2 screen captures, one is a part of YTD payroll summary and the other is my payroll item setting.  Please check FUTA(0.6%), SUI (Our year 2023 SUI rate is 2.6% from EDD.), SDI (0.9%), and ETT (0.1%). Some employees are wrong calculated. Please advise how am I supposed to solve this problem.

 

Thank you so much.

 

QB Wrong Payroll Tax Calculation (010123 - 030623).png

My Payroll Item Setting (QB).png

 

Need to get in touch?

Contact us