I can share some information on how we calculate federal taxes, @user3rdstreethybrid.
The amount of federal income tax (FIT) withheld from employees' paychecks is not only based on the number of hours they've worked. It also depends on their marital status, the number of withholding allowances (exemptions) they claim on Form W-4, pay frequency and their projected annual income.
It's also possible that you've set the employee to Do Not Withhold for federal and state income taxes in the employee setup. To check:
Check these articles for more information:
I want to make sure everything is taken care of for you, so please let me know if you have any other issues with your employees profile in the Reply section. I'm always here to help. Have a wonderful rest of the day!
The federal taxes for my employees is not being withheld from their checks. I've double checked their profiles and cannot see why. Please help
Help has arrived to ensure QuickBooks calculates employee’s federal taxes accordingly, @cowboystatemeats.
The are several reasons for federal taxes not being withheld from your employee's paychecks. They are not meeting the taxable wage base, employee’s preferences were set to Do Not Withhold, and possibly, browser issues.
The online platform uses the browser’s cache to run faster. However, these can sometimes become corrupted, which affects the platform's functionalities.
You can refer to my colleague's recommendation above to review their setup. If their profiles and records are correct. We can perform some steps here that can fix your concern.
You can start accessing your QBO account in an incognito or private window for testing and then check. You can use these key shortcuts below for quick navigation:
Then go back to your main browser and clear the cache if it is now showing correctly. You can also use other supported browsers as an alternative except for Internet Explorer.
Federal and state income taxes are withheld in accordance with IRS Publication (Circular E), Employer’s Tax Guide. Check it to learn more.
Should you need further assistance with payroll, feel free to drop us a comment below. We'll get back to you as soon as we can. Take care!
I started working for a doctors office part time. Starting January of 2020. I have had several employments were I have made less income and I have still had my Federal and State taken out of my paychecks. While recently filing my taxes for 2020 - It was brought to my attention that my Federal and State taxes were not taken out all year and I now owe for 2020. My filing status is Single, No dependents, and $0 status. I have filled out all my W4 forms like this for the past 25 years of employment. My Federal and State should have been taken out and now in 2021 - Intuit workforce is STILL NOT DEDUCTING my Federal and State - so, I will end up owing for 2021 also! I have verified with my tax person that I have filled out the “NEW” W4 forms correctly and Intuit should be deducting Fed and State as required! What do we do to correct this problem or do I need to hire a tax attorney and sue Intuit for misconduct! Reading all of the reviews- this is a VERY BIG ISSUE ON THE COMPANY’S PART - and something has to be done to correct these issues! Please answer soon! [email address removed] - Tanya Hernandez
Hi Tanya,
If only I can check your account, I would be able to provide a formal response regarding the matter. I'd like to route you to our Phone Support Team. They have full access and tools that can remotely check your payroll information and can further adjust your taxes.
Here's how you can reach them:
Our Customer Support Team is available from 6 AM - 6 PM PT (Monday - Friday) and 6 AM - 3 PM PT (Saturday).
I've also attached an article you can use on how taxes are calculated based on the IRS Publication (Circular E).
Please don't hesitate to comment below if you have other questions about managing your payroll setup. I'm just around to help. Take care always.
Was anything ever done about this? I just realized that it has been doing this to my employees as well! I am sick over this!
I can see the importance of having accurate paycheck data. This is to ensure your taxes and forms have the correct information. I’ll guide you in the right direction on how to rectify the issue, tamara8.
I've checked our records and there's no reported case about this one where no federal payroll taxes are being taken out of employee payroll. QuickBooks Online (QBO) calculates your federal and state income taxes by following the IRS Publication (Circular E), Employer’s Tax Guide. The online system computes the federal withholding based on these criteria:
Also, taxes are not calculated when processing payroll if they are not meeting the taxable wage base and they were set to Do Not Withhold for federal and state income taxes in the employee setup. You can follow the steps in this article on how to resolve the issue: Troubleshoot no income tax withheld from a paycheck.
If the worker’s tax information is set up properly, I'd recommend contacting our Payroll Support Team for further assistance. They'll pull up your account in a secure environment and investigate what's causing this issue.
I’m adding some articles for future reference. These resources provide an overview of payroll tax wage bases and limits. From there, you’ll see answers to common questions about tax forms and payments.
To remain compliant with payroll taxes, check out this article: Payroll Tax Compliance Links. Just look for your state, and go to the Withholdings section for additional information.
Let me know in the comments below if you have other questions about payroll taxes in QuickBooks Online. I'll take care of them for you. Take care always.
For out employees, Quickbooks is either taking out no federal withholding or very little. I triple checked that everything was inputed correctly. All of our employees file single with no dependents.
So, what I do is use a payroll tax calculator from 2019 and manually change the federal and state withholding for every employee, every pay period. Because of this, all our employees got refunds this year and did not owe. It's really sad that Intuit can't get it together on their end. I've tried to get help to no avail, so I just do it this way. Here is the link that I use to calculate withholding.
https://smartasset.com/taxes/paycheck-calculator
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