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Payroll withholding failed

two emp. in payroll, but only calulates withholding on one emp

1 Comment
QuickBooks Team

Re: Payroll withholding failed

Thanks for coming to Community for help, @wvc1.

There are two possible reasons why QuickBooks aren’t withholding taxes:

  • Employee’s annualized salary exceeds the limit.
  • The gross wage of the employee is too low.

If none of these situations apply to your employee, I recommend downloading the most recent software release and tax table updates to fix this.

Here’s how to update QuickBooks: 

  1. Go to Help and click Update QuickBooks.
  2. In the Update QuickBooks window, click the Update Now tab. 
  3. Click to select the Reset Updates checkbox before clicking the Get Updates button.
  4. Hit OK to confirm the reset.

Update Qb 1.PNG Update Qb 2.PNG Update Qb 3.PNG Update Qb 4.PNG


When it’s complete, the Get Updates button becomes active and the words "Update Complete" appear. You need to restart QuickBooks and click the Install Now button for it to install successfully.

Once done, download the latest payroll tax table by following the steps below:

  1. Go to the Employees menu and select get Payroll Updates.
  2. Select Download Entire Payroll Update.
  3. Click Update.

Update tax table 1.PNG Update tax table 2.PNG


Check out the following articles for reference: 

Now, try running payroll again to check if taxes are showing up. If they still don’t, I recommend reverting the paycheck to refresh previously saved data. 

  1. In the Pay Employees tab, click Resume Scheduled Payroll or Start Unscheduled Payroll.
  2. Right-click the name of the employee that's highlighted in yellow, then select Revert Paycheck
  3. Hit the Open Paycheck Detail button, then enter the employee details. 

If you see taxes calculating already, proceed to create paychecks. Here’s an article to help you with the process: Create Paychecks.

That should get you back up and running in no time.

Keep in touch with me on how this goes. I’m always here to help if you need anything else. Have a good one!