I got you the details of why federal taxes were not withheld from your paycheck, Kathy.
The common reasons why employees are not withheld with federal taxes are the following:
- The employee claims to be tax-exempt.
- If the employee's wages didn't meet the minimum threshold.
- The wage limit has been reached. You can run through this article for a better understanding of payroll tax wage and base limits: Understand payroll tax wage bases and limits.
To rectify this, we can check various factors that affect your taxes. First, your payroll wages, deductions, or contributions are correct, then update if needed in your payroll product. Next to it, check the employee’s federal filing status by following the steps below:
- Navigate to the Payroll menu and select the Employees tab.
- Click the name of the employee.
- Under the What are [employee's name] withholdings section, click the Pencil icon.
- Make sure the federal status is not Do No Withhold (exempt).
You can refer to this article for more information on the process: Troubleshoot no income tax withheld from a paycheck.
After you've double-checked that everything is in order, I recommend looking at the Payroll Tax and Wage Summary report. It explains how QuickBooks calculates tax amounts on employee paychecks as well as the wage base limit for each employee's tax.
Let me walk you through:
- Go to the Reports tab located on the left pane.
- Type Payroll Tax and Wage Summary in the search box and press Enter.
- Modify the date range and click Run Report.
- Click the Federal Income tax under Federal Taxes (940/941).
Feel free to reply to this post if you need further assistance with your payroll. The Community always has your back. Have a great day!
