Issue Re: Federal Tax deduction

I'll provide steps to deduct the Federal Income Tax from the employee's paycheck, @Atul971.

It could be that the employees are not meeting the taxable wage base. That's why FIT is not being deducted from their paychecks. I recommend visiting the IRS Publication (Circular E), Employer’s Tax Guide to review the federal tax rules.

Another possible reason is the employee's profile is set to Do not Withhold. I recommend checking their profiles to review the Federal Filing Status. If it's set to Do Not Withhold, you'll need to change it to the appropriate one.

 Here's how:

1. Go to Workers or Payroll on the left side.
2. Select the Employees tab.
3. Find the employee's name.
4. Click Edit next to Pay.
5. Hit the Edit icon in the Withholding section.
6. Click the State tax name, and review the Federal Filing Status. If it's set to Do Not Withhold, change it to the suitable one.
7. Hit Done.

Once done, you can run a paycheck to verify if the FIT is already deducted.

Please check this article to see the steps to set up QuickBooks Workforce and invite your employees to view and print their pay stubs and W-2s: Invite employees to see pay stubs and W-2s online.

Let me know if you have follow-up questions after trying the recommendation. I'll be here to assist you further. Take care!