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sherry-epps
Level 1

Why are payroll taxes not being deducted when I run payroll. What features need to be turned on/off? I have two records;one record with w/h tax and the other with out?

 
1 Comment 1
MariaSoledadG
QuickBooks Team

Why are payroll taxes not being deducted when I run payroll. What features need to be turned on/off? I have two records;one record with w/h tax and the other with out?

Let's find out why payroll taxes aren't deducting, sherry-epps.

 

There are possible reasons why payroll taxes aren't deducting:

  • Total annual salary exceeds the salary limit.
  • The gross wages of the employees last payroll are too low.
  • Ensure to run the latest payroll update to keep your taxes updated.

You'll want to check and make sure that your employees setup are correct. Then, ensure that previous payroll and employees YTD doesn't show any over-deduction on their taxes. 

 

To review your employees’ payroll information, here’s how:

  1. Go to Employees menu.
  2. Choose Employee Center.
  3. Double-click the employee’s name, one at a time.
  4. Select Payroll Info on the left.
  5. Please make sure the Pay Frequency is correct.
  6. Click the Taxes button.
  7. In the Federal tab, review the Filing Status and Allowances fields. Make the necessary corrections.
  8. Hit OK.
  9. Click OK again.

QuickBooks calculates the federal withholding based on these factors:

  • Taxable wages
  • Number of allowances/dependents
  • Pay frequency
  • Filing status

Also, here are the lists of articles you can read more about paychecks calculation in QBDT:

 

Let me know if payroll taxes are already deducting from your payroll. I'll always be here to further assist you.

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