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MATTERNGO
Level 1

Federal Taxes Not Deducted Correctly

We have an employee who's Federal Income Tax Withheld changed in March 2018 without us making any changes to her allowances or filing status. Is there any other reason why this might have happened? 

 

Any help is appreciated.

 

- Thank You

2 Comments 2
Regina_Lend_A_Hand_Accounting
Level 9
HoneyLynn_G
QuickBooks Team

Federal Taxes Not Deducted Correctly

Hello there, @MATTERNGO.

 

I can share information on how QuickBooks calculates the payroll taxes of your employees.

 

Intuit is compliant with the IRS's mandate on how to calculate the amount for Federal Income Tax. Aside from the allowances and filing status, some other factors are:

 

  • agency's wage and tax calculation table
  • extra withholding amount in the employee setup
  • pre-tax deduction items included on the paycheck
  • changes in pay frequency (creating extra paycheck outside of normal pay schedule)
  • creating a paycheck with wages that has lesser or larger amount than what the employee normally gets in a pay period.

You can refer to the Publication 15 for in-depth information.

 

That should give you the right amount of information you need, MATTERNGO.

 

I'm still here to help you more if you have follow-up questions about payroll. Just add a comment below or mention my name. Wishing you all the best!

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