Is your Quickbooks Payroll not withholding Taxes? Well, if yes, then we have got you a solution. Often, users face the issue of QuickBooks desktop payroll not withholding taxes, and they get stuck over it. However, sometimes it is just a minor issue caused by not updating the latest payroll tax table. But, sometimes, it can become a major issue that needs proper troubleshooting. Here, in this blog, we will let you know everything about why is your QuickBooks payroll not withholding taxes and how you can fix it.
Follow the complete article to know more about the Quickbooks Payroll Not withholding Taxes issue.
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What is Quickbooks Payroll Not withholding Taxes?
Sometimes in QuickBooks, you or your employees may notice that the federal or state tax for the duration is 0.0. Or say the state withholding on the paycheck is not at all calculated by QuickBooks. In such cases, you may face the Quickbooks Payroll Not withholding Taxes issue and can get confused about how to deal with it. But do not worry; this is quite common if your employee does not have enough wages to meet the maximum threshold value.
However, if you want to deduct the withholding taxes from your employee’s paycheck, just follow the quick fix given in the next part of the article.
But first, understand exactly why did you face the Quickbooks Payroll Not withholding Taxes issue.
Why do you face the Quickbooks Payroll Not withholding Taxes Issue?
There can be several reasons why is your QB Payroll not withholding taxes or the payroll taxes are not calculating in your QB. We have discussed some of these reasons below:
- Your total annual salary exceeds the salary limit.
- The gross wages of the employee’s last payroll are very low.
- The QuickBooks Payroll tax table is outdated.
To know in detail how to update the payroll tax table, you can follow QuickBooks Payroll Tax Table Update.
Steps to fix the Quickbooks Payroll Not withholding Taxes Issue
QuickBooks calculates the federal withholding based on certain factors. So, if you wish it to be deducted correctly, you need to revisit the employees’ profiles and check if they are set up correctly.
These factors include:
- Taxable wages
- Pay frequency
- Number of allowances/dependents
- Filing status
Revisit these factors and check your settings:
Step 1: Check your Employee’s Payroll Information and Verify if it is correct
- For this, first, go to the Employee menu.
- Next, in the Employee menu, choose the Employee Center option.
- Now, click twice on the employee’s name. (Remember to click one at a time).
- After that, go to the Payroll Info option at the left.
- Then, make sure that the Pay Frequency is correctly set.
- Then, click on the Taxes button.
- And in the Federal tab, review the Filing Status and Allowances fields. Make the corrections if necessary.
- Lastly, you need to click OK twice.
Struggling with Adding Employees to QuickBooks payroll? Read how to Add Employee to QuickBooks payroll.
Step 2: Revert your employee’s paycheck to refresh your payroll information and calculator the taxes.
- Again go to the Employee’s Payroll Information.
- Then, click right on the name of your employee that would be highlighted in yellow.
- After that, select the Revert Paycheck option.
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The Final Words!!
An outdated payroll tax table can also cause the Quickbooks Payroll Not withholding Taxes issue. So, before moving ahead with the troubleshooting steps, make sure that the payroll is updated to the latest version. For that, go to the Employees tab and choose Get Payroll Updates. After that, you need to select the mark against Download entire payroll update option. Then select the Update option and wait till the update gets completed. After that, rerun the payroll. You need to check the detail of each check before saving and enter the deduction from the net to the employee advance item.
Now, each new payroll check will be zero, but taxes will be correct. But, when you run payroll in the next period, it will deduct the remaining advance amounts from each employee. Hence your Quickbooks Payroll Not withholding Taxes issue will get resolved. For any other assistance regarding QB or Payroll, contact our QuickBooks Support experts.
Still having issues? Call us at +1-(855)-955-1942
Frequently Asked Questions
The reasons why your QuickBooks payroll does not withhold taxes include the following:
1. Your total annual salary exceeds the salary limit.
2. The gross wages of the employee’s last payroll are very low.
3. The QuickBooks Payroll tax table is outdated.
The factors that help in calculating federal taxes are given below:
1. Taxable wages
2. Pay frequency
3. Number of allowances/dependents
4. Filing status