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ambulanceservice
Level 1

Why aren't taxes actually being deducted from my employee's check?

taxes aren't being deducted, why?
2 Comments 2
MichaelaS
QuickBooks Team

Why aren't taxes actually being deducted from my employee's check?

Let's check the tips to help you fix the calculation of your employee's paycheck, @ambulanceservice.

 

Incorrect pay calculation can be due to employee, tax, or payroll item setup or reaching wage limit. If the limit is reached, taxes will not be calculated. If not, check the setup of your wagesdeductions, or contributions to ensure they are correct, then update them if necessary. 

 

You can check this article to guide you in accessing the employee's information: Edit or change employee info in payroll.

 

Ensure that the employee is set as taxable for the paycheck to calculate, and then delete/ re-create the paycheck if you've made changes to the employee setup. 

 

Here's how:

  1. Go to the Payroll menu in the left panel, then the Employees.
  2. Select the Paycheck list.
  3. Select the paycheck(s), then click the Delete button.
  4. Select Yes.

 

Once done and the paycheck is still incorrect, I recommend contacting our Online Payroll Support to check its calculation further and find a fix. Our support hours are from Monday-Friday, 6 AM to 6 PM PT.

 

Here's how: 

 

  1. Click the Help icon.
  2. Select the Search tab. Then, Contact Us.
  3. Choose a general topic where your concern falls. Or, click Ask about something else.
  4. Explain your issue in words. Once done, tap Continue.
  5. Pick how you want to connect with us: Chat or Callback.

 

Additionally, refer to this article to guide you further in filling out your taxes or forms: Pay and file payroll taxes and forms electronically.

 

Please keep us posted if you have other questions about paychecks. We're here to assist. Take care.

Rainflurry
Level 15

Why aren't taxes actually being deducted from my employee's check?

@ambulanceservice 

 

This topic comes up regularly on this forum.  The only way to know what QB Payroll should be withholding is to look at IRS Publication 15-T and fill out the worksheet on page 12.  Then look up what the proper withholding should be in the tax tables that follow.  You would be shocked at how much income an employee can make before any taxes are withheld.  It all depends on the employee's W-4.  I had an employee with 5 dependents whose filing status was married filing jointly (MFJ).  He didn't have any taxes withheld until he made well over $100K/annually.  MFJ, lower-wage earners, Step 2(c) checkbox checked on W-4, and other W-4 adjustments all reduce the amount of withholding.   

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