Federal tax withholding

It's great to see you here, @ajm01998.

I would like to share some insights on how to resolve this paycheck withholding discrepancy.

There are a few reasons why taxes won't calculate properly on the paychecks. Consider the following:

• QuickBooks is not updated, or an internet interruption occurred during the update.
• Using an incorrect tax table version.
• Employee's Year-To-Date is incorrect.
• QuickBooks is doing a catch up for an underpayment or overpayment.

To correct this, let's make sure you're able to download the latest tax table update version 22116. You can check that by following these steps:

1. Go to the Employees tab.
2. Select Get Payroll Updates.
3. You'll see the tax table version beside the Payroll Update Info button.
4. Click on Download Latest Update if the update version is not correct. An informational window appears when the download is complete.

Next, review the status of the Payroll if it is showing active in the company file. Here's how:

1. Go to the Employees tab and select My Payroll Service.
2. Pick Manage Service Key from the list.
   
3. In the Status column, verify if it says Active.
4. You can also view your subscription status by pressing Ctrl + K on your keyboard.
5. If the status says Active, click the Edit button.
   
6. Click Next.
7. Uncheck the Open Payroll Setup - I want to start right tick box.
8. Click Finish.

If it's correct, review any discrepancy on the employee's paycheck. We can use a Payroll Detail Review report to verify the taxes withheld and the difference. Here's how:

1. Go to the Reports menu, and pick Employees & Payroll from the list.
2. Select Payroll Detail Review.
3. At the top of the report, click on Customize Report button.
4. From the Display tab, select a date range from drop down list or fill out the From and To dates.
5. Proceed to the Filters tab. Find Payroll Item from the list and tap Multiple payroll items. (See screenshot.)
   
6. Select the taxes that are not calculating. (Example: Medicare Company, Medicare Employee, Social Security Company and Social Security Employee).
   
7. Once done, click OK twice.

On the report, review if the payroll checks have the correct deductions. You can get the correct calculation by multiplying the total wage base of each payroll item by the corresponding tax rate.

If QuickBooks did overwithheld any taxes, you can wait for the next payroll run for QuickBooks to auto-correct the calculations. Another option is creating a liability adjustment to correct the taxes. Here's an article with the complete steps on how to create an adjustment: Adjust payroll liabilities.

Once done, try to process the payroll again and see if the taxes withhold correctly. If not, I highly recommend contacting our Payroll Support this time to report the problem.

Here's how you can connect with us:

1. Open QuickBooks.
2. Go to Help, then select QuickBooks Desktop Help.
3. Select Contact Us.
4. Enter your concern, then select Continue.
5. Choose a way to connect with us:
   • Post a question and get an answer from expert and other customers.
   • Start messaging with a support expert.
   • Get a callback from an expert (availability may be limited).

You can also chat our support online. Select your product and fill out the form to chat with an expert by clicking this link here: Do It Yourself Payroll Chat Support

If you need further help or have other questions with the payroll tax calculations in QuickBooks. Leave a comment below and I'll be glad to help. Have a productive week! Take care.