We're glad to have you here in the Community space, @LYB51. Let me explain why your employee's paycheck has no federal withholding.
The Internal Revenue Service (IRS) issued a new Form W-4 and increased the standard deduction in January 2020. These changes reduced the federal tax withheld on their paycheck, so even if they withdrew money previously, they may now owe $0. If they updated their W-4 form or filled out a new one, they will be subject to the IRS's new tax withholding rules.
If the employee completes Form W-4 accurately and there are no other changes, the deductions will be correct. However, if the employee wants additional tax withheld, they can review and update their Form W-4 or have their employer issue them a new Form W-4.
When calculating taxes, each paycheck is annualized. If you have an hourly employee with varying hours from paycheck to paycheck, the federal income tax amounts will also vary. At times, some employees may not earn enough wages to have any federal withholding taken out.
I've attached these articles for reference:
Moreover, utilize this article as your reference if you desire to make adjustments to your employee's wages, taxes, and deductions: Adjust payroll liabilities in QuickBooks Desktop Payroll.
We're happy to assist you with further questions or concerns regarding withholding paychecks. Take care always.
