Quickbooks stopped withholding federal payroll taxes . I use Quickbooks Online

Need my tax Return  leaning WORKS Preschool2020

Thanks for reaching out to the Community forum, janeayre17 and Marie Hickey.

The system calculates federal and state income taxes by following the IRS Publication (Circular E), Employer’s Tax Guide. There are several reasons why the taxes are not calculating when processing payroll.

It may be possible that the employees are not meeting the taxable wage base. Another reason is they were set to Do Not Withhold for federal and state income taxes in the employee setup.

To isolate the issue janeayre17, let's check if their profile is set to Do No Withhold. 

Here's how:

1. In the left menu, click Payroll.
2. Go to the Employees tab.
3. Select the name of the employee.
4. In the Employee details tab, tap the edit (pencil) icon beside Pay.
5. Click the pencil icon in question # 2 for what are your employee withholdings.
6. In the Federal filing status section, ensure that the Do not withhold (exempt) radio button is selected.

For more information about this, see this article: 0.00 or no income tax withheld from paycheck.

Here's also a resource to learn more about creating paychecks: Create pay checks in online payroll.

As for your concern Marie Hickey, can you provide additional details about the tax Return leaning WORKS Preschool2020 you're referring to? I want to ensure this gets resolve for you. 

Let me know if you have any other payroll or QuickBooks questions. I'm just a few clicks away to help!