Payroll Processing - Federal Withholding

Hi there, @HappyGirl1. I got here some steps to help you fix the calculation of the federal withholding of your employee.

To resolve this, you'll want to check your employee's profile to ensure the setup is correct. QuickBooks Desktop (QBDT) calculates the federal withholding taxes based on the following factors:

• Taxable wages
• Number of allowances/dependents
• Pay frequency
• Filing status

Here's how to review the employee's payroll details:

1. In your QBDT account, go to the Employees tab and choose Employee Center.
2. Next, double-click the employee’s name to open their profile and select the Payroll Info section.
3. Check the Pay Frequency drop-down menu and ensure it is correct.
4. Then, select the Taxes button.
5. From the Federal tab, double-check the Filing Status and Allowances details. Edit them if needed.
6. When done, select OK.

Also, federal withholding may sometimes show a $0.00 amount if the employee doesn’t meet the minimum threshold (visit the IRS Publication 15-T page for more details), or if they claim exempt. You can review their federal withholding forms and tax setup to verify the data. 

For reference about tax calculations in QBDT, feel free to check this article: Understand how your payroll taxes are calculated. 

It's also recommended to ensure your payroll tax table is updated to stay compliant with paycheck calculations.

Let me know how the steps go. I want to ensure you'll get the correct federal withholding calculation for your employee. Don't hesitate to post here again for additional questions you may have. Have a good one. 

All double checks are proving the Federal Withholding is calculating correctly at 0.00. Thank you for the assistance.

On behalf of my colleague, Divinia, above, you're welcome, @HappyGirl1. 

Please feel free to reach out to the QuickBooks Community at any time. We are always here to lend a hand. Take care!