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Level 1

Withholding is not being calculated even though I entered the dollar amount for the 2020 W4. What should I do?

this is happening for 2 new employees. My other employee from prior to 2020 tax with-holdings are processed correctly.
3 Comments
Moderator

Withholding is not being calculated even though I entered the dollar amount for the 2020 W4. What should I do?

Hi there, smcgregor.

 

Let's ensure that your concern will be taken care of.

 

Based on the details you've provided above, I can see that it's only happening for your two new employees. Let me share some information that could be the possible reason why withholding in not being calculated in QBO. Please see them below:

 

  • If one or more tax amounts are suddenly lower or are 0.00, the employee might have met the year-to-date (YTD) tax limit. Most taxes have limits on the number of earnings they will tax. 
  • The federal or state withholding amount might correctly appear as 0.00 if the paycheck is particularly small.
  • The federal or state withholding amount might appear as 0.00 if your employee is claiming a large number of allowances or deductions.

 

After checking the bullets above, and figure out that everything is good. We can do some troubleshooting steps to resolve the issue. When things go like this, performing the recommended troubleshooting steps can help us fix the issue. It helps us to verify if it's really a browser issue that causing the error message you're getting.

 

If you haven't tried them yet, you can sign in to your account using a private browser. You can follow the shortcut keys below, depending on what browser you're using.

 

  • Google Chrome: Ctrl + Shift + N
  • Microsoft Edge: Ctrl + Shift + P
  • Firefox: Ctrl + Shift + P
  • Safari: Command + Shift + N

 

If the withholding is being calculated in your book, we can go back to our main browser and clear the cache. This is to start your data fresh and help QuickBooks to work well.

 

I'll be around if you have other questions. Just let me know by adding  a new post below. I hope your day is good. Stay safe!

Level 1

Withholding is not being calculated even though I entered the dollar amount for the 2020 W4. What should I do?

This didn't solve the problem b/c non of the bullet points mentioned relate to the 2 employees.

QuickBooks Team

Withholding is not being calculated even though I entered the dollar amount for the 2020 W4. What should I do?

Hello there, @ smcgregor.

 

QuickBooks calculates the federal withholding based on these factors:

 

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

 

If the employees' profile isn't set up correctly, the federal withholding will be deducted wrong. You can check to see how the employee's taxes are set up by following these steps: To check this further:

 

1. Click on Workers at the left pane.

2. Select Employees.

3. In the Employees tab, find and click your employees' names one at a time.

4. Click the Edit employee button.

5. In the Pay tab, click the Edit icon (pencil image) in the What are [employee's name] withholdings?.

6. Check the tax set up of your employees and correct them.

 

If the taxes are set up correctly on your employees' profile, I recommend contacting our Support Team to check and verify this further securely. You can do this by following the steps below:

 

1. Click the Help (?) icon.

2. Choose Contact Us.

3. Fill in a bit of information about your issue.

4. Select Get a Callback.

5. Enter in your contact information so an agent can call you back.

 

You can read through these articles to learn how QuickBooks calculates taxes to understand the tax amounts reported on an employee's paycheck or the year-to-date (YTD) payroll report:

 

If you have other payroll-related questions and concerns. I'm always here to help.

 

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