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connor-fg2ssi-co
March 10, 2024
Question

Does anyone have issues with state & federal taxes not being taken out of employee paychecks using QuickBooks payroll?

  • March 10, 2024
  • 3 replies
  • 0 views
Sometimes, no federal or state is taken out of server paychecks, but they still get a net paycheck.

3 replies

K
KimberlyS
March 10, 2024

Welcome to the Community, connor.

 

I'll be sharing information regarding the state and federal taxes withheld for your employees.

 

In QuickBooks Online, withholding federal and state taxes of employees depends on their tax status. Employees with Exempt or Do not withhold status will not be liable to pay for these taxes.

 

Therefore, let's ensure setting up the appropriate tax status for your employees. Here's how:

 

  1. Head to Payroll, then Employees.
  2. Locate the employee and click on it.
  3. Under the Tax withholding section, select Edit.
  4. Choose the appropriate option from the Filling Status dropdown for Federal Withholding and State Withholding.
  5. Once done, click on Save.

 

On the other hand, please note that employees who haven't reached the minimum threshold don't have to pay state and federal taxes, even if they're not tax-exempt.

 

For more information about the discussion above, you can refer to these articles:

 

 

Moreover, consider reviewing this material whenever you want to e-pay and e-file payroll taxes within the program: Pay and file payroll taxes and forms electronically in QuickBooks Online Payroll.

 

Update us in the forum for queries about withholding payroll taxes and other concerns related to QuickBooks Online. We're always around to offer further assistance.

J
jdjanac
May 14, 2024

I have had this issue for multiple payrolls now since the update for 2024 taxes. Initially it was one that red flagged as the wrong tax % and was rejected and returned to me. Ever since my payroll has not process any of the necessary taxes. I have been on at least 4 Glance sessions with the help line. The last thing I was told is to hope the update happens for this run..... It did not. One more payroll processed with no taxes being charges or taken from my account, or showing in my files. I need an audit of my payroll at this point to straighten it out. Please send someone who can do that.

    M
    MichaelaS
    May 14, 2024

    Thanks for chiming in and sharing this information with us, @jdjanac.

     

    QuickBooks automatically calculates state and federal taxes when tax wages, number of allowances/dependents, pay frequency, and filing status are correctly configured and verifies if the employee is tagged as tax-exempt.

     

    Once confirmed that the setup is correct and not marked as exempt, I suggest contacting our Payroll Support for additional assistance to conduct a thorough investigation and run an audit to address this promptly.

     

    Here's how:

     

    1. Sign in to your QuickBooks Online company.
    2. Go to Help.
    3. Select Contact Us.
    4. Type in a short description of your concern, then select Let's Talk.

     

    Here's a helpful article to guide you if you're ready to file your forms and taxes: Pay and file payroll taxes and forms electronically.

     

    The Community is always available for any other questions you have about tax calculations. We're here to help. Have a good day ahead.

    P
    pmflooring
    May 19, 2024

    Yes, just happened to me. My problem is that I've never had any issues with it till last week. The program always deducted the right amount of taxes but 2 weeks ago it didn't deduct anything (to make it even worse I didn't notice) and this week it took out the taxes? 

    The only thing I can think of is that I couldn't download the payroll update, but I don't understand why it wouldn't take anything out?

    K
    KayePe
    May 19, 2024

    It's essential to verify that the payroll setup is accurate, and that the employee has not been marked as exempt, @pmflooring.


    Once the payroll is correctly set up, QuickBooks automatically computes state and federal taxes. If everything is in order, I recommend contacting our support team for assistance. They will conduct a thorough investigation to identify the underlying issue. Let me show you how:
     

    1. From the Help menu at the upper right, click the Search tab.
    2. Choose Contact Us and type your concern in the What can we help you with?
    3. Select Continue.
    4. Hit Chat with us or Have us call you.

     

     

    In addition to managing regular payroll, you may need to track your employees' year-to-date paycheck information and overall company totals.


    Feel free to return to this thread for further questions about managing payroll in QuickBooks Online. I'm available around the clock to assist you. Stay safe!

    P
    pmflooring
    May 21, 2024

    Hi KayePe, So he's been on my payroll for 6 months and I've been on the payroll 15+ years and this was the first time it has ever happened. 

    L
    LisaB777
    May 28, 2025

    I too have had this happen. Last week was the second time we ran payroll and no taxes were taken out of a certain few of our employees. This week it doubled up. I've tried customer service when it happened the first time and they could not give me a reason????? This is very frustrating, and is very difficult to give an explaination to my employees

     

    S
    SashaMC
    May 28, 2025

    Hello LisaB777,

     

    Thank you for updating us! I truly understand your frustration. For now, it would be best to call our Customer Service team so they can escalate this issue, especially since it is becoming repetitive. We are unable to access personal or company information on this public forum, so they would be the best option. My colleague, Jorgette G shared the steps above to connect with us!

     

    Please let me know how the conversation goes! I will be looking forward to a response. See you soon. 

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