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January 6, 2020
Question

Major issued. QBs payroll deducted the same federal withholding 5 times. How did QB adjustments cause duplicated deduction 5x???

  • January 6, 2020
  • 1 reply
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1 reply

IamjuViel
January 6, 2020

Hello, @inafl-cio.

 

When your year-to-date (YTD) deductions are incorrect, QuickBooks automatically catches up by correcting each of your employee's payroll calculations. Let's ensure that your QuickBooks software and payroll tax table is updated to the latest version. Once completed, let's run the payroll summary report so you'll see your employee's total deduction.

 

Here's how to run a payroll summary report:

  1. Go to the Reports menu.
  2. Select Employees & Payroll.
  3. Choose the Payroll Summary.
  4. Set a date range.
  5. Click the Refresh button.
  6. Remove the Hours and/or Rate columns.

Also, you’ll have to revisit your employees’ profiles if they are set up correctly. QuickBooks calculates the federal withholding based on these factors:

  • Taxable wages
  • Number of allowances/dependents
  • Pay frequency
  • Filing status

To review your employees’ payroll information, here’s how:

  1. Go to the Employees menu.
  2. Choose Employee Center.
  3. Double-click the employee’s name, one at a time.
  4. Select Payroll Info on the left.
  5. Please make sure the Pay Frequency is correct.
  6. Click the Taxes button.
  7. In the Federal tab, review the Filing Status and Allowances fields. Make the necessary corrections.
  8. Hit OK.
  9. Click OK again.

If you've already verified the taxes setup on your employee's profile, you can check this article for other steps in fixing wrong tax calculation: QuickBooks Desktop calculates wages and/or payroll taxes incorrectly.

 

If the employee is overpaid on the last payroll, you can create a deduction item with a tax tracking of “None” and use it on their first payroll of the year.

 

Feel free to click the Reply button if you have other questions about calculating federal withholding in your employee’s paycheck. I’m always here to lend a hand.

BigRedConsulting
January 6, 2020

@IamjuViel 

RE: When your year-to-date (YTD) deductions are incorrect, QuickBooks automatically catches up by correcting each of your employee's payroll calculations.

 

It does this for many fixed percentage taxes, like social security and medicare, federal and state unemployment.

 

It does not do this for federal withholding.