I'm here to make sure you'll be able to deduct tax in QuickBooks, Terry.
There are several factors why no deductions are calculated in QuickBooks.
- The yearly salary of the employee exceeds the established salary cap
- The gross wages of the employee's previous payroll are insufficient.
- Ensure to run the latest payroll update.
If federal withholding isn't being deducted correctly, check your employees' profiles to ensure they are set up correctly. QuickBooks calculates federal withholding based on taxable wages, number of allowances/dependents, pay frequency, and filing status.
Here's how to review your employees’ payroll information:
- Go to the Employees menu and click Employee Center.
- Select an employee’s name and select Payroll Info.
- Ensure that the Pay Frequency is correct.
- Click on the Taxes button.
- In the Federal tab, check the Filing Status and Allowances fields and make corrections if needed.
- Click OK, then select on OK again.
Additionally, to ensure the liabilities are attributed to the correct year, consider adding the deduction to your employee’s first payroll of the year. Alternatively, you can create an adjustment check dated the same as the last payroll to avoid issues with your current tax forms such as the 941 and W2.
If you have pending paychecks from the Enter Payroll Information, you can choose Revert Paycheck to undo the changes. Once completed, re-enter the paycheck details to ensure taxes are calculated correctly.
Moreover, as we are not able to post here the contact number, we recommend you visit this article so you can see the number and directly call our Support to help you with your concern: Contact Payroll Support
For additional reference about this action, read this article: How to save or revert pending paychecks.
Here are also some lists of articles you can read more about paycheck calculation in QBDT:
Feel free to let me know if you have further questions about managing payroll. I'll gladly help you in any way that I can. Keep safe and take care.
