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Rose9861
Level 1

state tax withheld

QB Pro 2019 Desktop

 

I do payroll manually, yes, the hard way. When I run the P&L, all the taxes withheld show except the Ohio withholding. I can withhold Ohio on the paycheck and it shows on the Payroll Liab. report when I make my monthly report. I can pay the Ohio monthly liability from the Pay Liab. window. I can pull up a P&L detail report, filter for Ohio Taxes, and it shows "0" for every paycheck issued, even though tax WAS withheld, and subsequently paid. How do I get the Payroll Liab report to show the correct figures
Thanks

 

Solved
Best answer May 18, 2021

Best Answers
BigRedConsulting
Community Champion

state tax withheld

@Rose9861 

RE: When I run the P&L, all the taxes withheld show except the Ohio withholding. 

 

Only company paid taxes are an expense to you. All employee withheld taxes, like federal and state withholding and the employee part of SS and Medicare are not expenses and so don't appear on the P&L. At least they should not as they are not expenses to the company.

 

Instead, taxes withheld from the paycheck are liabilities to you because you have to pass on the (employees') money to the various agencies. When you do that, the liability is reduced. There's no expense to you.

 

If other employee withheld taxes are appearing on your P&L, that wrong. In this case you can fix that by editing the payroll items and changing the liability account to an actual liability account, perhaps the default "Payroll Liabilities".  When prompted, click the option to update all transactions that use the item.

View solution in original post

2 Comments 2
Joesem M
Moderator

state tax withheld

Thanks for posting in the Community space, @Rose9861.

 

I want to ensure that the state tax withheld is deducted from your employees’ paychecks. This is to ensure your taxes and forms have the correct information.

 

When the federal withholding is not calculating, check your workers’ profiles and make sure they’re set up properly. QuickBooks Desktop calculates the federal withholding based on these factors:

 

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

 

To verify your employee's profile, here's how:

 

  1.  Go to the Employees menu, then select Employee Center.
  2. Double-click on the employee’s name.
  3. Go to the Payroll Info tab, then select Taxes.
  4. Check the Filing Status under the Federal and State tabs.

 

Also, you can create a Payroll Summary report to check whether the employee has reached the unemployment wage base limit.

 

  1. From the Reports menu, select Employees and Payroll, and select Payroll Summary Report.
  2. Enter the current calendar year-to-date.
  3. Locate your employee's SUI and double-click the accrued amount to open the Transactions by Payroll Item report.
  4. In the Wage Base column, use the wage base total to determine whether your employee has reached the limit.

 

For more details, here are articles that provide detailed information on why a paycheck shows $0.00 or no income tax withheld and how to fix incorrect State Unemployment (SUI) or withholding (SIT). It also includes detailed instructions on how to review your workers’ filing status: 

 

 

Also, we can try reverting the employee's paychecks to see if the payroll taxes are calculating. QuickBooks has an auto-calculation feature that carries over the underpaid taxes for the next payroll run. For other troubleshooting options on why payroll taxes are not withholding, check out these articles: 

 

 

Stay in touch if you have additional questions or concerns about QuickBooks. I’ll be right here to answer them for you. Have a good one.

BigRedConsulting
Community Champion

state tax withheld

@Rose9861 

RE: When I run the P&L, all the taxes withheld show except the Ohio withholding. 

 

Only company paid taxes are an expense to you. All employee withheld taxes, like federal and state withholding and the employee part of SS and Medicare are not expenses and so don't appear on the P&L. At least they should not as they are not expenses to the company.

 

Instead, taxes withheld from the paycheck are liabilities to you because you have to pass on the (employees') money to the various agencies. When you do that, the liability is reduced. There's no expense to you.

 

If other employee withheld taxes are appearing on your P&L, that wrong. In this case you can fix that by editing the payroll items and changing the liability account to an actual liability account, perhaps the default "Payroll Liabilities".  When prompted, click the option to update all transactions that use the item.

View solution in original post

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