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info1393
Level 1

Why is $0 of federal income tax withheld?

Using the self-service set-up, employee intended to claim zero allowances across the board on his W4. I have verified that it is all populated with zeros. Yet very little federal income tax is withheld on some checks, and many checks have $0 withheld. He wanted the maximum withheld in order to prevent owing at tax return time. What has happened?
1 Comment 1
DivinaMercy_N
Moderator

Why is $0 of federal income tax withheld?

Hi there, @info1393. I'm here to give you information about why paychecks have $0 withheld in QuickBooks.

 

In QuickBooks Online (QBO), paycheck shows $0.00 or no income tax withheld, because of the following reasons:

  • Employees are not meeting the taxable wage base.
  • Employees were set to Do Not Withhold for federal and state income taxes in the employee setup.

 

To verify if they are set to Do not Withhold, you can check their profile. Here's how:

 

  1. Sign in to your QBO account.
  2. Then, go to the Payroll menu and select Employees.
  3. Click the name of the employee.
  4. Select the edit (pencil) icon beside Pay.
  5. Then, click the edit (pencil) icon next to the withholding section.
  6. From there, check the Federal Filing Status/State Filing Status.

 

For more information about this, please visit this article: 0.00 or no income tax withheld from paycheck. 

 

It's easy to track and monitor your employee information and your company's finances in QBO. To do so, you can pull up any payroll reports suit your needs. Each report has corresponding data that they display, you can also export or print them to have a handy copy that you can use as a reference.

 

I'm always around if you have any other concerns about your employee paychecks. Feel free to post your reply below. Have a good one. 

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