SUMMER SAVINGS 90% OFF QuickBooks for 3 months* Ends June 27

Buy now
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Work smarter and get more done with advanced tools that save you time. Discover QuickBooks Online Advanced.
kellithebad3
Level 1

Why are federal taxes different on paycheck when gross pay is the same from week to week?

 
1 Comment 1
Jovychris_A
Moderator

Why are federal taxes different on paycheck when gross pay is the same from week to week?

Welcome to the Community, @kellithebad3. Let me help you understand why federal tax deductions may vary between paychecks.

Although they have the same gross pay, I've listed the factors that can affect federal taxes on employees' (EE) paychecks:

 

  • Federal income tax brackets
  • Filing status
  • Claimed dependent's deduction
  • Applicable tax exemptions

 

When the rates or amounts of the factors I've listed above vary for each employee, this could explain the differences in taxes on their paychecks. You can check these details on the EE's profile in the Tax Withholding section to view the W-4 information. Let me show you how:

  1. Hover over the Payroll menu and then select Employees.
  2. Click the name.
  3. Go to Tax withholdings and click Edit.


tax.png


Then
run payroll data like the Payroll Details report to view each worker's tax breakdown for the last pay date or this year if needed.

Additionally, QuickBooks uses the percentage method to calculate the federal tax for each paycheck. You can find more information on this method on page 56 of the IRS document: Federal Income Tax Withholding Methods. To learn more about how QuickBooks sums taxes on each paycheck, refer to this article: Understand how your payroll taxes are calculated.

It looks like you're really getting the hang of how QuickBooks handles tax calculations! If you're ready to expand your payroll capabilities and explore more services tailored to support your business as it grows, I recommend checking out this website: Payroll services made to grow with you.

 

When it’s time to pay and file these taxes, you’ll find everything you need in this guide: Pay and file payroll taxes and forms electronically in payroll.

 

If you've got any more questions about managing your payroll taxes, feel free to tag me (@Jovychris_A) or drop a comment, Kell. We're always here and eager to help you out. Have a great day!

Need QuickBooks guidance?
Log in to access expert advice and community support instantly.

Need to get in touch?

Contact us