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srodge
Level 1

Why is federal income tax withheld for only some of my employee?

 
1 Comment 1
jamespaul
QuickBooks Team

Why is federal income tax withheld for only some of my employee?

Hello, srodge. 

 

There are several reasons why the federal income tax didn't withhold on some of your employees. I'm happy to share the details with you and how you can resolve it. 

 

QuickBooks Online calculates the federal income taxes based on the following: 

 

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

 

You'll want to check a few tax settings in your employees' profiles and ensure they are set up properly. One of the factors can be the reason why the federal income taxes didn't calculate for some of your employees. 

 

To check your employees' settings: 

 

  1. Go to Payroll, then click the Employees tab.
  2. Find and select the employee's profile (the one that didn't calculate).
  3. Click the pencil icon beside the Pay header.
  4. Click the pencil icon again beside the What are [employee's name] withholdings? header.
  5. Check and correct the tax setup of the employee. 

 

Also, you might want to check this IRS publication and review your employees' income brackets: https://www.irs.gov/pub/irs-pdf/p15.pdf.

 

After resolving the federal income tax issue, run payroll as you normally would. You can also run a variety of payroll reports if you want to see your employees' liabilities and earnings: Run payroll reports.

 

I'd be glad to share more details again if you have more questions about the taxes in QuickBooks Online. If you need to sort out other tasks in the program, let me know and I'll guide you how. 

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