Welcome to the QuickBooks Community forum, CarBor. I'm excited to have you as one of our newest members. One of your top priorities as an employer should be ensuring your employees are accurately taxed. This not only ensures their take-home pay is correct but also keeps you in compliance with tax regulations. To help you with this matter, I would like to share some detailed information and guide you through the necessary processes.
Before we proceed, I'll provide context on the potential reasons behind under or over-collection of employee-paid taxes. Understanding these factors can help us better identify the root cause of the problem and guide us toward an effective solution.
Some common reasons for employee tax over-collection may include:
- Your employee wasn’t marked as subject to a tax and should have been.
- Your employee had a payroll item set up incorrectly.
- A tax rate changed.
- Tax tables weren’t updated.
Since your employee is experiencing excessive overwithheld, I suggest generating the payroll summary report. This report will provide the total payroll wages, taxes, deductions, and contributions, allowing you to pinpoint any wage and tax discrepancies. After reviewing the report, you'll need to contact our Live Payroll Experts for assistance in correcting your employees paycheck.
Once we address the issue with the paycheck, you'll receive an email containing instructions about processing refund of the overwithheld taxes.
By proactively managing your payroll and ensuring your employees are taxed accurately, you'll be able to foster a more transparent and supportive work environment, CarBor. If you have any questions or need guidance on these adjustments, share them with me in the comments section. I'm here to help you navigate this important aspect of your responsibilities as an employer.
