I have two employees where federal taxes are not being withheld. They are concerned that this may be an error. Why could this be happening?

I lay down some information about how federal taxes are calculated, jandjlogisticsnc.

There are several reasons why federal taxes aren't deducted from your employee's compensation. Here are some possible explanations:

• Total annual salary exceeds the salary limit.
• The gross wages of the employee's last payroll are too low.
• They are not meeting the taxable wage base.
• Changes in pay frequency (creating extra paycheck outside of normal pay schedule)
• Browser issues.
• They were set to Do Not Withhold for federal and state income taxes in the employee setup.

Let's take a look at their personal information, such as their marital status, the number of withholding allowances (exemptions) they claim on Form W-4, pay frequency, and predicted yearly income. Also, be sure they aren't set up to withhold federal and state income taxes on a Do Not Withhold basis. Follow the steps below to double-check.

1. Select Payroll menu, then Employees.
2. Locate the affected employee.
3. Click the edit pencil icon beside Pay.
4. Next to the withholding section, hit the edit icon.
5. Check the Federal Filing Status/State Filing Status.

If everything appears to be in order, you can try some troubleshooting procedures to resolve any potential browser issue. To begin, open an incognito window and log into your account. The shortcut keys are as follows:

• Google Chrome: Ctrl + Shift + N
• Safari 11 or newer: ⌘ + Shift + N
• Mozilla Firefox: Ctrl + Shift + P

If it works, you can return to your regular browser and clear the cache to unwanted internet files. Except for Internet Explorer, you can use another supported browser as an alternative.

I've also included the following articles for more insight:

• IRS Publication (Circular E), Employer’s Tax Guide.

• Form W-4: Employee withholding allowances.

• 0.00 or no income tax withheld from paycheck.

Check out these resources below for further information and future reference when it comes to payroll:

• Run Payroll Reports
• Payroll Tax Compliance Links

If you require additional assistance with taxes or other QuickBooks concerns, please respond to this post. We're here to help you at any time. Keep yourself safe.