Hi there, KTLT. QuickBooks uses the payroll information you’ve entered, such as employee tax details, earnings, and company settings, to calculate paychecks.
If taxes aren’t being deducted, it could be due to various reasons:
- The gross wages of the employee's last payroll are too low.
- The total annual salary exceeds the salary limit.
- Outdated tax tables.
To address this, review your employee's payroll details to confirm accuracy and check whether the wage limit has been reached, as QuickBooks will automatically stop calculating taxes once the threshold is exceeded. Additionally, ensure your tax tables are updated to reflect the latest tax rates and wage limits for the current year.After updating the tax table, let's revert your employee's paycheck to refresh the payroll information and accurately calculate the taxes.
Here's how:
- Go to Employees, then choose Pay Employees.
- Right-click on the name of any highlighted employee.
- Choose Revert Paycheck.
Please let us know if you have any additional concerns. We’re here to help.
