wont deduct payroll tax

Hi there, elsie. I'm here to share some information and tips for you to make sure payroll taxes are seamlessly deducted from your account.

Here are some of the reasons why taxes won't be deducted from QuickBooks Desktop Payroll:

• The total annual salary exceeds the salary limit.
• The gross wages of the employee's last payroll are too low.
• QuickBooks Desktop and payroll tax table may not be updated, or the payroll setup may be incorrect.

To isolate this, make sure you have the latest version of both your QBDT and payroll tax table. This keeps QuickBooks up-to-date so you have the newest features and product improvements as well as stay compliant with paycheck calculations. Check out the hyperlinks above for the detailed steps and the following screenshots for visual reference:

After running the tax table update, go back to your employee's paycheck in the Payroll Center. Then, revert the paycheck. This will refresh the payroll information and fix the tax computation. Here's how:

1. Go to the Employees menu, then select Payroll Center.
2. Navigate to the Pay Employees tab, then tap Start Scheduled Payroll or Start Unscheduled Payroll.
3. If you notice the employee's name highlighted in yellow, right-click on the name and click on Revert Paycheck (see the image below).

Once done, re-enter the payroll details and check the taxes. Read this article for more information about reverting paychecks: Save or revert pending payroll checks.

Here's an extra module to find out why your employee’s federal or state income tax is $0.00 in QuickBooks: Troubleshoot no income tax withheld from a paycheck.

Please let us know the results of this or if you have other concerns with payroll. The Community is available 24/7 to back you up. Keep safe!