MHW2
Level 1

Payroll State Tax calculations

Changed one of my employees tax deductions and now QB is not calculating state income tax.

 

GebelAlainaM
QuickBooks Team

Employees and payroll

Let me share insights about the state income tax not calculating for your employees.

 

In QuickBooks, the federal and state income tax is withheld by IRS Publication (Circular E), Employer’s Tax Guide. If you see a paycheck with no income tax withheld, it's possible that the employee did not meet the taxable wage base or claimed an Exemption.

 

If you or your employee think withholding taxes should be deducted from their paycheck, you can check your employee's federal and state withholding forms and your employee’s tax setup in your payroll product to be sure. For guidance, check out this article: Troubleshoot no income tax withheld from a paycheck.

 

If you want to run payroll reports in the future, visit this article: Run payroll reports. This includes all the lists of payroll reports available in QuickBooks Online.

 

Please know that you can always post a reply if you need further assistance or clarification about your federal and state taxes. I'll be happy to assist you at any time.