Why QB 2020 does not deduct Federal and State witholding tax?

Well, sometimes the correct answer is 0.00, given the pay period and pay.  Generally if your employee is making at or less than the poverty level there will be no withholding taxes taken out.

Is your case that the withholding taxes are 0.00 and the other taxes like social security and medicare and FUTA calculate and are non-zero?  Or do no taxes calculate?  If the former, everything is probably OK given your setup.  If the latter you may not have a current tax table, or may not have validated your subscription successfully.  What is your subscription status on the payroll center?

Thank you for contacting us, quest132.

I'm here to help find out why payroll taxes aren't calculating QuickBooks Desktop.

These are the possible causes that may affect the tax calculation on your employees' paycheck:

• The total annual salary exceeds the salary limit.
• The gross wages of the employee's last payroll are too low.
• The tax table is not updated.

If this is affecting one employee only, you'll want to ensure the payroll set up on the profile is correct. If it's affecting employees, let's run the payroll update to ensure that you have the latest tax table version.

After that, you can revert the employees' paycheck to refresh the data and have the taxes calculated.

Let me show you how:

1. Open your employee's payroll information.
2. Right-click the name of the employee which is highlighted in yellow. 
3. Select on Revert Paycheck. 

I'd also recommend updating your QuickBooks regularly so you'll be able to have the current fixes and releases in the software.

Check out these handy articles on what to do when payroll taxes aren't taken:

• Payroll items on a paycheck are not calculating or are calculating incorrectly
• 0.00 or no income tax withheld from paycheck.

Stay in touch if there's anything else you need. I'm always around to help.