Hi there, @ginger-pileobone. Let's work together to ensure your employee's paycheck will get deducted correctly.
Having zero income tax deductions on your employee's paycheck usually happens if they are exempted or they don’t meet the minimum threshold. If this is not the case, there are a few things you need to verify to ensure everything is accurate.
Let's start with checking their state and federal W-4 withholding forms and make sure they have the correct info. The tax calculation for these may depend on several factors:
- How much your employee is paid
- How often your employee is paid
- Marital status
- Number of dependents
- Other sources of income
After that, check also their tax set up in your payroll service. From there, ensure that the necessary info, such as the filing status matches your employee’s W-4. If the filing status of your employee is set to Exempt or Do not withhold, regardless of their gross wages, taxes will not be deducted from their paycheck. On the other hand, simply update their filing status if they shouldn’t be exempt from withholding taxes.
For more details, please check this article: Troubleshoot no income tax withheld from a paycheck.
You may also want to run payroll reports in QBO to easily view your employee data, monitor your business finances, and check the taxes withheld. To get started, check out this link to open one: Run payroll reports in QuickBooks Online Payroll.
Please let me know if you have any other questions about managing your employee's paychecks. I want to make sure you'll be able to get this resolved as soon as possible. Have a good day and keep safe.
