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WDH
Not applicable

Payroll deduction not calculated correctly

My employees are set up to have a % of their gross pay deducted from their paycheck with a matching % contribution from the company.  For the first 3 paychecks of the year, this worked perfectly (i.e. the 2 amounts matched).  For the current payroll run, it is incorrect.  The two amounts do not match.  QuickBooks is calculating the employer contribution correctly (based on gross pay), but is deducting health premiums from gross pay before calculating employee contributions. I did not make any payroll settings changes since the last payroll run.

 

When searching for an answer, I have read in a post:

Check the order of the payroll items on the paycheck to determine if payroll item order is affecting the calculation.

  • If you want the payroll item to calculate based only on the Earnings of the employee, it should be the first item in the Other Payroll Items section of the paycheck.
  • If you want to include certain additions and deductions in the computation, add the payroll item after those items.

But, how do you change the order of the payroll items?  I have deleted them and then tried to re-add them.  No matter what order I add them back, the health premium continues to be listed first and thus the error continues. 

 

Any ideas?

16 Comments
Anonymous
Not applicable

Re: Payroll deduction not calculated correctly

Thanks for visiting the Community today, @WDH,

 

I want to make sure you're able to correct your employee deduction and employer contribution calculations in QuickBooks Online.

 

I checked if there's an ongoing issue about the deductions not calculating correctly but there isn't currently one. I also tried running multiple payroll for different pay periods on my end, and I was able to get the correct deductions and contributions on them.

 

In your case, since you already deleted and recreated the paychecks but to no avail, I'd recommend getting in touch with our QuickBooks Online Payroll Care Team. There they can help you make necessary corrections or adjustments to your payroll taxes. Here's how to contact us.

  1. Log in to our Quickbooks Online account.
  2. Click the (?) Help menu at the top-right.
  3. Select Contact us.

 

That should get you connected to our live support agents, @WDH.

 

Please update me on how this goes. I want to ensure your concern gets resolved so you can get back to business. Have a good day!

Frequent Explorer **

Re: Payroll deduction not calculated correctly

We've also had this issue and were told it is a known problem and the engineers are working on it. (INV-31599)  However, it still has not been resolved.  This had always been calculating correctly in the past several years that we have been using QuickBooks Payroll, something must have recently changed on their end and now it is not calculating correctly.  We have been told we will receive an email when this issue has been fixed, but that was over 2 months ago:(

QuickBooks Team

Re: Payroll deduction not calculated correctly

Hello @AttComm,

 

I know how challenging this is for you. Currently, we have an on-going issue where users like you have an incorrect calculation of your payroll deductions.

 

Rest assured that this issue has been escalated to our engineering team and they're in all hands working to fix this as soon as possible.

 

In the meantime, you have the option to use the amount method for your employee's deduction. Let me show you how:

  1. Go to Workers.
  2. Select Employees.
  3. Find and click to open your employee profile.
  4. Hit Edit employee.
  5. Scroll down the page to section 5 of your employee's pay.
  6. Select the Pencil icon of your employee deduction.
  7. Choose $ amount and enter the amount of your employee deductions.
  8. Hit OK.
  9. Click Done.

If you haven't yet, I'd still recommend contacting our Payroll Care Team so you'll be added to the new list of affected users.

 

In case you need some tips and related articles for future use, you can always visit our QuickBooks Online Payroll Help Articles page for reference.

 

We appreciate you patiently waiting as we fixed this for you so you can get back to business in no time. Please let me know if you have any other concerns.

Not applicable

Re: Payroll deduction not calculated correctly

This appears to still be an ongoing issue. Our latest payroll, for this Friday, is still not correctly calculating the Simple IRA deductions for employees set to deduct as a % of gross.

Moderator

Re: Payroll deduction not calculated correctly

Hi, Phenym.

I appreciate you looping in this thread. Let me provide some updates and a workaround regarding this payroll issue.

 

For now, the most recent update that I have is that our Payroll Team is working closely to resolve this issue. We are still investigating this unexpected behavior.

 

I don't have a specific time frame as to when and how this will be meditated upon, rest assured are looking into it. However, as more information becomes available, I'll be sure to let you know the root.

 

As a workaround, you have to manually calculate and enter the IRA amounts every payroll run and for every impacted employee to have an accurate payroll deduction.

 

Also, I'd suggest getting in touch with our Payroll Specialists to have this re-investigated. Unlike in this public forum, they have the tools required to perform any escalations in the system whenever necessary on your behalf.

 

  1. Sign in to your QuickBooks Online Company.
  2. Click (?) Help at the upper right corner.
  3. Select Contact US on the pop-up.
  4. Enter a brief description of your concern then hit Continue.
  5. Click Get a callback.
  6. Enter your contact information.
  7. Select Call me.

Here are additional references that might be helpful for future use:

 

I'll keep an eye of this issue and will let you know whenever an update is available. Please extend your patience while we're working for the permanent fix.

Frequent Explorer **

Re: Payroll deduction not calculated correctly

We have been asking to have this issue resolved for months now (INV-33621) and keep getting the same answer--"Rest assured that this issue has been escalated to our engineering team and they're in all hands working to fix this as soon as possible."  I can't believe it is taking your engineering team this long to resolve a simple calculation issue.  Perhaps you need some new engineers as this problem is still ongoing!

Moderator

Re: Payroll deduction not calculated correctly

Thanks for getting back to this thread, AttComm.

 

I checked the investigation number (INV-33621) you've shared and found out that it was already tagged as closed and resolved. If you're still having the same issue, I highly recommend contacting our Phone Support team again to have this re-opened for further investigation.

 

Here's how to reach them:

 

  1. In your QBO account, click the Help (question mark) icon at the top right.
  2. Select Contact Us at the bottom to connect with our live support.

I'm also sharing these articles for future reference:

 

 

I want to make sure everything is taken care of for you, so please let me know if you have any other issues or concerns. I'll be here to help. Have a good one!

Frequent Explorer **

Re: Payroll deduction not calculated correctly

How can this issue be resolved and closed when the problem still persists?  Also, I never received an email that the issue was resolved like I was supposed to.  I've called and entered info online, but the issue has never been resolved!!!

QuickBooks Team

Re: Payroll deduction not calculated correctly

I appreciate the details you shared and for getting back to us, @AttComm.

 

I also understand how you feel when something isn't working the way you need it. But I'd still recommend contacting our Payroll Care Support by following the steps above.

 

They have the tools need to pull up into your payroll account, securely. From there, someone will help you with the correct calculation of deductions for your employees' payroll.

 

In the meantime and if you haven't yet, you can consider using the Amount method for your employees' deduction. Then, manually calculate the deductions for your employees' payroll. You can do so by selecting $ amount under your Employee deduction menu.

 

Know that you can always visit our Help Articles page for QuickBooks Online Payroll in case you need some reference for your future payroll tasks.

 

Please let me know in the comment section down below if you have any other concerns. It'll be my pleasure to help and I'm always around ready to help.

Not applicable

Re: Payroll deduction not calculated correctly

I debated about doing the amount fix but it will still be the same amount of work of going in and fixing the percentage amounts to fixing the fixed amounts for the employees who are on hourly (different each week) pay. So leaving things alone and hoping you all fix it soon.

Frequent Explorer **

Re: Payroll deduction not calculated correctly

It's hilarious that QBO is upping their monthly subscription cost but can't seem to fix the simplest of things. Seems pretty greedy to me.

QuickBooks Team

Re: Payroll deduction not calculated correctly

I hear you, @jasminr89.

 

Please know that this is not a kind of customer experience we want you to experience. You've got me here to help you get this sorted out. 

 

Top of that, the price increase for the QuickBooks Online subscription help us reinvest in improving the features and introducing new tools to do more in less time. Also, you can access more than 650 apps so you can increase its capabilities.

 

Since this issue was already closed by our engineers, I'd suggest contacting our QuickBooks Support team so they can provide further assistance with this issue.

 

Here's how to reach them:

 

  1. Click the Help icon in the upper right of the screen.
  2. Select Contact US on the pop-up. 
  3. Enter what you're needing assistance with in the What can we help with? field and choose Let's talk
  4. Click Get a callback.
  5. Enter your contact information.
  6. Select Call me.​

Please check out this article for more reference about frequently asked questions about the QuickBooks Online price increase: FAQ: QuickBooks Online price increase for July 2019.

 

Get back to us if you have any questions and concerns. We're always here to help. 

Not applicable

Re: Payroll deduction not calculated correctly

I can also tell you that this issue is not fixed. I experienced this again this week when running payroll.

 

The last time I called and spoke with the team at quickbooks they told me that it was a change by the IRS. I asked if they could point me to a IRS reference for the change and they could not.

 

SIMPLE IRA deductions in quickbooks payroll are NOT calculating properly and this has been an ongoing issue. I wonder why I am using quickbooks payroll for 'accuracy' when this is not done properly.

 

Running the numbers manually every payroll defeats the purpose of having the service.

Not applicable

Re: Payroll deduction not calculated correctly

I can also tell you that this issue is not fixed. I experienced this again this week when running payroll.

 

The last time I called and spoke with the team at quickbooks they told me that it was a change by the IRS. I asked if they could point me to a IRS reference for the change and they could not.

 

SIMPLE IRA deductions in quickbooks payroll are NOT calculating properly and this has been an ongoing issue. I wonder why I am using quickbooks payroll for 'accuracy' when this is not done properly.

 

Running the numbers manually every payroll defeats the purpose of having the service.

Frequent Explorer **

Re: Payroll deduction not calculated correctly

I removed that last comment text as I shouldn't be snide. I am glad to see this is in fact an ON GOING ISSUE with someone other than myself. 

 

QuickBooks - You can't just close cases to make them go away, you actually need to find resolutions, please, pretty please!?!?

QuickBooks Team

Re: Payroll deduction not calculated correctly

I appreciate your patience and understanding, @jasminr89.

 

Before the engineers close open investigations, they need to perform tests to ensure the fix is permanent. In case the problem reappears, it's always recommended to perform basic troubleshooting solutions to refresh the system. If this doesn't work at all, they'll reopen the case, or create a separate ticket to escalate the issue. 

 

Your feedback is important to us. That being said, reviews such as this can make a difference if shared with our support team. 

 

I'm backing up my colleague's suggestion to contact them again. They have the tools capable of pulling up your account in a secure environment, which we are unable to do so here in the Community for security reasons. 


From there, have our representative send an escalation to the technical team to look for the root cause of the payroll deduction miscalculation. Please follow the steps above to reach our Customer Care Team.

 

Please know that I'm always here to help if you need anything else. Take care and have a good one!

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