Thanks for joining in the thread, sheila48.
I can provide information on why federal taxes are deducted incorrectly.
May I know if you're using QuickBooks Desktop Payroll Service or QuickBooks Online Payroll? This helps me provide the best action to take to resolve your issue.
The federal withholding is calculated by QuickBooks using the following factors:
- Taxable wages
- Number of allowances/dependents
- Pay frequency
- Filing status
You'll have to double-check your employees' profiles if they are set up correctly. If you're using QuickBooks Desktop Payroll, you can follow the procedures outlined by my colleague MichelleT above.
Here are the steps for QuickBooks Online Payroll:
- Go to the Payroll menu, select Employees.
- Locate and click the name of the employees affected.
- Hit the Pencil icon beside Pay.
- Confirm each section from Personal info until How do you want to pay [employee].
- Please make sure to check the What are [employee] withholdings? section where Tax exemptions field can be found and your employee's W-4 information.
- Select Done.
- Click the Profile tab and make sure it has the correct information.
- Go to the Employment tab, then double-check if you need to correct any information.
- After that, hit Done.
I've included the following articles below for more insights:
If your employee is set up correctly, you can contact our Payroll Support Team. They have the tools to help you via secure remote access sessions.
Leave a comment below if you have further questions or you need further assistance with taxes. We're always here to help you.
