No payroll taxes being taken out of paychecks

Hi there, nordstromha.

I'll provide some information about why payroll taxes are not deducting from your paychecks.

There are several reasons why payroll taxes not being taken out of paychecks:

• The total annual salary exceeds the salary limit.
• The gross wages of the employee's last payroll are too low.
• The payroll tax table is not updated prior to running payroll.

To fix the issue, I suggest performing some troubleshooting steps by refreshing the payroll service and updating the tax table.

Let's open first the company file and go to the Account Maintenance page. Please follow the steps below.

1. On the Employees tab, scroll down and pick My Payroll Service.
2. Choose the Account/Billing information option.
3. Enter your Intuit user ID and password.
4. Go to the Service Information section and check the Service Status.
5. If it shows as Suspended, hover your mouse to the Annual Billing Details section and enter the credit card information.
6. Click on Save.

After that, you can proceed with downloading the most recent QuickBooks Desktop software release and the latest tax table version. This is to ensure your payroll service will get the most current and accurate rates for supported state and federal tax tables.

If the problem persists, I recommend reverting the paychecks. This helps to refresh the payroll information and for the payroll taxes to calculate.

Here's how:

1. Go to the Employees menu.
2. Select Payroll Center.
3. Go to the Pay Employees tab.
4. Click the Resume Scheduled Payroll button.
5. Right-click the employee's name, then select Revert Paycheck.
6. Submit payroll when you're ready.

Once done, select the employees, then click Open Paycheck Detail. Check if the taxes are already calculating.

If the issue continues to occur. you check these articles for additional troubleshooting solutions when payroll taxes are not calculated in the paychecks:

• Payroll items on a paycheck are not calculating or are calculating incorrectly
• QuickBooks Desktop calculates wages and/or payroll taxes incorrectly

Feel free to reply to this post if you need a hand with running employees' payroll reports. I'll be here to help.

I upgraded to 2020 SO why are there no tax deductions taken from the payroll checks???? This was not resolved yet from last week....

Do I have to pay for the payroll service even though I bought  Q B PRO desktop 2020???

Hello there, Lynn35,

I'm here to help ensure QuickBooks will take tax deductions from your payroll. When paying employees, it requires an active payroll service.

There isn't a need to pay for the payroll service if you are already subscribed to it from your previous QuickBooks plan. You'll simply need to turn it on your new 2020 company file.

If you aren't subscribed to the payroll service, you can buy it online or from a retail store. Then, activate  it to pay employees in QuickBooks.

Check out these handy articles on how to turn on the feature depending on the purchased product:

• Activating a payroll service purchased from a retail store
• Activate QuickBooks Desktop Payroll when purchased online or by phone.

Once done, you can follow the instructions provided by my colleague above on how to revert the paycheck.

Also, make sure to set up payroll items correctly and assign them on your employee profile. If not, it could cause incorrect tax calculations to be withheld. 

Feel free to read through the Edit payroll items used on paychecks page to correct them.

Keep me posted if you need anything else concerning payroll. I'm always right here to help.

I was following the QuickBooks help sent to me today.  Re:  No payroll taxes being taken out of paychecks.

On 11-30-2020 I went to do my payroll and my one employees payroll.  My payroll had tax withheld, and the employees payroll had zeroes on each withholding account.  I don't know why the employees check is not withholding taxes.

I tried to follow the instruction for "No payroll taxes being taken out of paychecks".  I entered my user ID and password and it is stuck in "Account Recovery" for 15 minutes straight.  

What can you do to help me?

Trimble1

I'm here to ensure your employees' paychecks will take out the right amount of payroll taxes in QuickBooks Desktop (QBDT), @Trimble1.

Let me start by reiterating the reasons no payroll taxes being taken out of employees' paychecks:

• The total annual salary exceeds the salary limit.
• The gross wages of the employee's last payroll are too low.
• The payroll tax table is not updated prior to running the payroll.

Based on your description of the issue, it seems that you want to start the troubleshooting process by accessing the Account Maintenance page to check your payroll service status. Remaining in the Account Recovery window for a couple of minutes indicates that there's a need to download and install the latest system updates. With this, you can start by downloading the most recent QuickBooks Desktop software release to have the most up-to-date features and fixes. Here's how to do a manual system update:

1. Close your company files and QuickBooks.
2. Go to the Windows Start menu.
3. Search for QuickBooks Desktop.
4. Right-click the icon and select Run as administrator.
5. While on the No Company Open screen, go to the Help menu.
6. Select Update QuickBooks Desktop.
7. Go to the Options tab. select Mark All and then click Save.
8. Select the Update Now tab and click the Reset Update checkbox.
9. When you're ready, select Get Updates.

After that, you'll have to close and reopen QuickBooks. Then, select Yes to install the updates. Once done, restart your computer to fully implement them.

When the update process is done, you'll have to download the latest payroll tax table. This is to ensure you have the most current rates and get your payroll service to accurately calculate your employees' payroll taxes.

Once done, I'd recommend pulling up the appropriate payroll report (i.e. Payroll Summary or Paycheck Detail) from the Reports menu. This is to double-check and make sure your employees' paychecks are now taking out payroll taxes.

Additionally, you'll have to make sure your employees and payroll items are set up correctly to ensure accurate calculation of wages and tax amounts. To learn more about this, you can read through this article: Calculates wages and/or payroll taxes.

Click the Reply button below if you have follow-up payroll concerns or other inquiries. I'm just around to help. Take care always.