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January 14, 2024
Question

How are federal payroll taxes my business pays calculated? they doubled this month how do I find out why?

  • January 14, 2024
  • 1 reply
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outgoing payroll went up for January 2024 by around $2,000 but federal outgoing payroll taxes in quickbooks went up over $4,000.00. How do I figure out why ?

1 reply

January 14, 2024

We see the urgency of fixing this concern at your end, @gcmpllc. Let me give possible reasons why you're experiencing doubled federal payroll taxes. 

 

Federal payroll taxes in QuickBooks Online (QBO) may have doubled due to several factors. Some possible reasons include:

 

  • Employee's tax setup: Your employee's tax withholding may created incorrectly. Go to their profile and check the information to avoid inaccurate tax calculations. 
  • Pay frequency: The amount withheld for federal income tax may appear doubled if you pay your employees biweekly. It is calculated based on the employee's annual income and tax bracket.
  • Paychecks duplicated: Duplicated payroll causes the appearance of doubled payroll taxes. To view the paycheck history, you can run a payroll report. Here's how:

 

  1. In Reports, go to Standard.
  2. Find the report by name from the search field.
  3. Decide and select the report you want to view.
  4. Edit your report by date range, then hit Apply.

 

There are several payroll reports in QBO that you can use. Check out this article to guide you on what payroll to utilize to achieve your goal: Run payroll reports

 

However, if there's no issue regarding the employee's setup, pay frequency, and paychecks, reaching out to payroll support is needed. They can help you further in fixing this concern as soon as possible. If you're using QBO Payroll Core, the support team is only available Monday to Friday from 6 AM to 6 PM Pacific time. And if you're using QBO Payroll Premium, Elite, you can reach the support team any time from any day. 

 

On the other hand, I recommend scanning this link to guide you in recompensing and filing payroll tax inside QBO: Pay and file payroll taxes and forms electronically in QuickBooks Online Payroll

 

Comment below for more questions about taxes inside QBO. The community is here 24/7. Have a good one!