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Level 1

No withholding on paychecks after updates. what happened?

 
3 Comments
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Moderator

No withholding on paychecks after updates. what happened?

I've got the information you need about the missing tax calculations on your paychecks, @dockuehl. Also, I'll share with you the steps on how to fix them. 

 

Here are the possible reasons QuickBooks Desktop (QBDT) isn't calculating taxes properly: 

  • Total annual salary exceeds the salary limit.
  • The gross wages of the employees are too low.

 

You're on the right track in updating QBDT and the payroll tax table. What we can perform next is to review the employee's tax setup since it affects how QuickBooks calculates the taxes. Just go to the Employees menu and select Payroll Center. Then, choose the Payroll Info tab of your employee. 

 

Second, let's verify the accuracy of the FIT and SIT calculation. With this, I'd suggest checking out the Publication 15 (2020), (Circular E), Employer's Tax Guide. For more details, see the Special Calculation situations section through this article: How QuickBooks Calculates Payroll Taxes. You'll also find solutions on each scenario.  

 

Third, let's revert the paychecks if you're still in the process of creating them. This refreshes your payroll information so the system will calculate the taxes. I'll guide you how. 

  1. Go to the Enter Payroll Information window. 
  2. Right-click the employee's name which highlighted in yellow. 
  3. Select Revert Paycheck
  4. Repeat the process for your other employees. 

 

The screenshot below shows you the first three steps. For more information, check out this article: How To Save Or Revert Pending Paychecks

RevertPaycheck.PNG

 

Fourth, let's delete the paychecks if you haven't issued them to your employees. Then, recreate them to get the taxes calculated in the software. If you have already issued the paychecks to your employees, you'll have to void them. Then, adjust any difference in net amount when recreating the paychecks on the next payroll.

 

However, if the issue persists, I recommend performing other solutions depending on your scenario through this article: QBDT Calculates Wages And/Or Payroll Taxes Incorrectly

 

Additionally, you can run and customize any payroll reports in the program. Doing so will help you get the payroll information you need about your business. Just go to Reports from the top menu. Then, choose a report from the Employees & Payroll section. 

 

You can post anytime if you need more guidance. Have a great rest of your day, @dockuehl.

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Level 2

No withholding on paychecks after updates. what happened?

As of our 1/23/20 paystubs, the tax filing information - NOT the actual taxes withhold - is now gone from our paystubs/paychecks.  There was previously information on "filing status:  Married", "Allowances/Extra" information that appeared in the top right hand portion of our documents.  Several employees have asked me why this disappeared and I can't answer.  Can someone advise?  Possibly we just made a Preference change or something that removed this, but I can't find that if it's the case.  Thank you!

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QuickBooks Team

No withholding on paychecks after updates. what happened?

Hi, jpenn. 

 

Thanks for stopping by the Community for assistance, I'm glad to provide some feedback on why your paystubs may look a little different. The reason is because the start of 2020 marked a new change to the W4 entry to the IRS. If you want to customize your paychecks and paystubs however, you can. Here's an article breaking down the customization of paychecks and paystubs process

 

If you have any other questions or concerns, feel free to post them down below. Thanks again for stopping by and have a lovely evening. 

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