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bevklahr
Level 1

Taxes not being deducted?

 
1 Comment 1
RenjolynC
QuickBooks Team

Taxes not being deducted?

I'd be glad to provide more information on why taxes are not deducted, bevklahr.

 

Federal and State Income (FIT and SIT) Taxes are calculated based on the following information:

 

  • The agency's wage and tax calculation table.
  • The employee's filing status, number of allowances, or extra withholding amount in the employee setup.
  • Pre-tax deduction items included on the paycheck.
  • Changes in pay frequency (creating extra paycheck outside of normal pay schedule).
  • Creating a paycheck with wages that has lesser or larger amount than what the employee normally gets in a pay period.

 

Let's make sure to click on this link to update your QuickBooks Desktop to the latest version, as well as the tax table. Then, review your employees' payroll information by following these steps:

 

  1. Go to Employees Employee Center.
  2. Double-click the employee’s name.
  3. In the Edit Employee window, select the Payroll Info tab and make sure to check if the Pay Frequency is correct.
  4. Click on the Taxes button and review the Filing Status and Allowances in the Federal and State tabs. Make changes if necessary.
  5. Hit the OK button twice.

Once done with the payroll update, you can revert the employee's paycheck to refresh the information and calculate the taxes. I've got this article for the steps: How to save or revert pending paychecks.

 

You can also check out these articles for reference on why taxes are not calculated:

 

 

Please let me know if you need anything else. I'm just a post away if you have any additional questions. Have a good day!

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