its not deducting taxes on paychecks

Hi there, @Cp deli.

The steps above are applicable for vendor tax only. If you're referring to deducting taxes on your employee paychecks, let's ensure to add a payroll item and add it to your employee's paycheck.

Here's how:

1. Go to Lists, then select Payroll Item List.
2. Right-click the item and select Edit Payroll Item.
3. Change the info as needed on each window.
4. Select Finish.

For detailed steps, feel free to read this article: Set up, change, or delete employee-paid payroll deductions.

If you're done with the steps above and the taxes aren't deducted from paychecks, there are various reasons for this. These are:

• The total annual salary exceeds the salary limit.
• The gross wages of the employee's last payroll are too low.
• Your payroll tax table is outdated.

Let's make sure your QuickBooks is in the latest version as well as your tax table. You can also review the employee's tax setup since it affects how QuickBooks calculates it.

Once done, please revert your employee's paycheck. This refreshes your payroll information to calculate the taxes on the transaction.

Here's how:

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

Additionally, you can check out these articles for more troubleshooting solutions when payroll taxes are not withholding:

• Payroll items on a paycheck are not calculating or are calculating incorrectly
• QuickBooks Desktop calculates wages and payroll taxes incorrectly

Feel free to reply to this post if you need a hand with running employees' payroll reports. I'll be here to help.

Hello thanks for this. That is what we are doing, however we are required to add a tax rule on the TDS line item.

Can we bypass this?

It does not seem right to add a tax rule (even if 0) on a tax item.

Thank you for reaching out to the QuickBooks Community. I understand that you're facing challenges in adding a tax rule to the TDS line item, especially when it seems unnecessary.

In QuickBooks, each line item in an invoice or transaction generally requires a tax classification to ensure accurate reporting and compliance with tax regulations. However, if your transaction amount is 0 and your government requires you to include a tax, you will need to add a tax rate to the transaction.

Here’s how:

1. Go to VAT and select Add Tax.
2. Select Tax rate, then enter the tax name and description.
3. Choose the Tax agency, then click Save.

For more guidance, I'd suggest reaching out to your accountant for you to be guided and since taxes are crucial in this kind of situation.

You can visit this article for more detailed steps on how to add a sales tax category in QuickBooks Online (QBO).

Additionally, you may also refer to our article on tax reports to help you analyze your tax obligations and ensure accurate reporting.

If you have any more questions or need further assistance regarding sales tax, please feel free to ask. I'm here to support you throughout the process.