Does anyone know why QBO would stop calculating the Medical and Social Security taxes in payroll?

Hi there, anniejoy1859.

The taxes will not calculate when the employee’s profile is set not to deduct Social Security and Medicare. Let’s open the worker’s profile and make sure it’s properly set up.

Here’s how:

1. Go to the Workers menu and choose Employees to open the Employees list.
2. From there, click the worker’s name to open its profile.
3. Under Employee details, click the Pencil icon for Pay to view more information.
4. In the What are employee’s withholdings section, tap the Pencil icon.
5. On the Payroll Taxes Setup and Compliance page, scroll down to the Tax exemptions section and click on the arrow to see the complete details.
6. If the box for Social Security and Medicare is selected, remove the checkmark.
   
7. Click Done to keep the changes.

I also suggest running the Payroll Tax and Wage Summary to see if the employee already reached the wage limit for both taxes. Simply tap the Report menu on the left panel and then type in Payroll Tax and Wage Summary in the field box.

From there, click the Report period drop-down to pick the correct date range and then tap the Run report button to view the changes. Then, review the data displayed on the statement

The following article provides an overview of the tax rate (Employer and Employee). Aside from that, it contains a breakdown of the limit for Social Security, Medicare, Additional Medicare, and FUTA: Payroll tax wage bases and limits.

Check out this article for more details about adding or modifying employee’s data: Add or edit an employee in Online Payroll.

Reach out to me if you have any other concerns or questions. I’ll pop right back in to answer them for you. Have a good one.