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Level 1

No payroll taxes were deducted from employees paycheck

 
3 Comments
Highlighted
QuickBooks Team

No payroll taxes were deducted from employees paycheck

I'll help you find out why payroll taxes are not calculating, Wildbrdsga.

 

First, let's check if the payroll items are set up correctly. This is to make sure the calculation of wages and taxes are accurate. Here's how:

  1. Click Employees, then go to Employee Center.
  2. Double-click the employee name to open their profile.
  3. Go to the Payroll Info tab, then click Taxes.

If they are set up correctly, let's get the latest tax table update. This way, your payroll taxes will be updated with the newest tax rates. Once done, create the paychecks again, then verify if taxes are already calculating.

 

Although, if you've started to create the paychecks already, let's revert them. This is to refresh the payroll information and for the taxes to calculate. Here's how:

  1. Click Employees, then go to Payroll Center.
  2. Go to the Pay Employees tab.
  3. Click Start Unscheduled Payroll or Resume Scheduled Payroll.
  4. Right-click the employee name who's highlighted in yellow, then click Revert Paycheck.

After reverting them, enter the payroll information again, then verify if taxes are already calculating.

 

However, if you're done creating the paychecks already, you'll have to delete, and recreate them. 

 

If taxes are still not calculating after reverting or deleting and recreating the transactions, let's pull up the Payroll Summary report. This will show all payroll items and tax calculations. From there, we'll know if the employee's annual salary reached the limit or the gross wage is too low. This can cause taxes not to calculate. Here's how to pull up the report:

  1. Click Reports.
  2. Go to Employees & Payroll.
  3. Select Payroll Summary.
  4. Make sure the dates are correct. 

Click the Reply button if you need more help from this. We'd be happy to lend a hand.

Highlighted
Level 1

No payroll taxes were deducted from employees paycheck

Hey,

 

First - thanks.  We are almost there.  Employee tax info was set up OK.  Tax tables were up to date.

 

Did the revert and it successfully showed the taxes in all but 2 of the employees.

 

"If taxes are still not calculating after reverting or deleting and recreating the transactions, let's pull up the Payroll Summary report. This will show all payroll items and tax calculations. From there, we'll know if the employee's annual salary reached the limit or the gross wage is too low."

 

Printed the report, but am not sure how to know if the limits were reached or wage is too low.

My guess is that it might be one of these, as all the other employee tax info updated OK.

 

Thanks,

 

Kyle

Highlighted
Moderator

No payroll taxes were deducted from employees paycheck

It's great to see you again, @wildbrdsga,

 

To review if there are discrepancies on the employee's Year-to-Date balance, multiply the total wage base of each payroll item to its corresponding tax rate.

 

You can also use the Payroll Detail Review report. It provides detailed information about how QuickBooks calculates tax amounts on employee's paychecks.

 

Here's how to generate the report:

 

  1. Go to the Reports menu, and pick Employees & Payroll from the list.
  2. Select Payroll Detail Review.
  3. At the top of the report, click on Customize Report button.
  4. From the Display tab, select a date range from drop down list or fill out the From and To dates.
  5. Proceed to the Filters tab. Find Payroll Item from the list and tap Multiple payroll items. (See screenshot.)
  6. Select the taxes you want to review. (Example: Medicare CompanyMedicare EmployeeSocial Security Company and Social Security Employee).
  7. Once done, click OK twice.

 

However, if QuickBooks incorrectly calculated the taxes, there are 2 ways to remedy the situation. See this:

 

  • Option 1: Apply the taxes to your next paycheck. QuickBooks has an automatic calculation feature for rate-based taxes deducting overpaid taxes to your next payroll run.
  • Option 2: You can create a liability adjustment to increase the taxes. Here's an article with the complete steps on how to create an adjustment: Adjust payroll liabilities.

 

Please update me anytime if you need further help or have other questions with anything else in QuickBooks. Leave a comment below and I'll be glad to help. Have a wonderful and productive week!

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