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d44films-gmail-c
Level 1

Not all of my employees had their Federal Income Tax taken out of their payroll. I checked their info and it seemed okay. How do I fix this?

Only 2 of my employees had the FIT taken out while the rest did not. I checked their info I have on file and they don't seem to be any different from the people who did have it taken out, at least to me it doesn't. How can I stop this from happening in the future and what can I do to fix this problem for this tax season?
2 Comments 2
JenoP
Moderator

Not all of my employees had their Federal Income Tax taken out of their payroll. I checked their info and it seemed okay. How do I fix this?

I'd like to share more information to answer you question about income taxes, d44films-gmail-c.

 

QuickBooks uses the information from the employee's profile when calculating the Federal Withholding. This includes the claimed dependents, filing status, and pay frequency. 

 

Aside from that, the amount of taxable income is also considered. The lesser the gross pay, the more likely no Federal Income Tax will be taken out.

 

Does this employee get a lesser pay rate compared to the other ones? This can be the reason why you're not seeing any amount for Federal Income Tax when creating paychecks. More details about how it's calculated are laid out in this guide from the IRS: https://www.irs.gov/pub/irs-pdf/p15t.pdf.

 

I would also recommend reaching out to your accountant for further advice on this matter. 

 

Just in case you need more guidance when performing your year-end tasks, feel free to check out these articles: 

 

 

You can always get back here and post more questions if you need anything else. The Community is always open to help you again.

JenoP
Moderator

Not all of my employees had their Federal Income Tax taken out of their payroll. I checked their info and it seemed okay. How do I fix this?

Hi d44films-gmail-c,

 

Hope you’re doing great. I wanted to see how everything is going about the Federal Withholding calculation. Was it resolved? Do you need any additional help or clarification? If you do, just let me know. I’d be happy to help you at anytime.

 

Looking forward to your reply. Have a pleasant day ahead!

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