Why is the Federal Income Tax not being deducted from new employees entered even though the W-4 is entered correctly? how can I change this?

Hello, @mambrogio4.

It's possible that the employees' payroll taxes weren't set up in their profiles or they were set to Do Not Withhold.

To check:

1. Click the Workers tab on the left.
2. In the Employees tab, find and click your employees' names one at a time.
3. Click the Edit employee button.
4. In the Pay tab, click the Edit icon (pencil image) in the What are [employee's name] withholdings?
5. Verify the tax set up of your employees and correct them.

If everything was set up correctly, these factors may affect the calculation of tax. Our system calculates the tax based on these factors:

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

Then, these are the possible reasons why it's not calculating:

• Annualized salary exceeds the salary limit
• The gross wage of the employees are too low

At this time, you can manually calculate the employee's paycheck, then verify if it matches with QuickBooks Online. For your guide in computing the exact withholding amount, go through the IRS 2018 Publication 15.

Get back to me if you have any other questions. I'm always here to help. Have a good day!