Skip to main content
B
builtbyjconstruc
May 15, 2021
Question

Payroll did not take out Federal Taxes

  • May 15, 2021
  • 5 replies
  • 0 views
It only took Federal Taxes from one of my employees and not the rest. Can someone tell me why? Or how can I get it to take it from all employees?

5 replies

JenoP
JenoP
May 15, 2021

I'd be glad to help with your question about payroll, builtbyjconstruc.

 

Federal taxes, especially federal withholding, are calculated based on the employee's setup. Let's review the details to make sure they're taken out of your employee's paychecks. Here's how:

 

  1. Go to the Payroll menu and select Employees.
  2. Click the name of the employee, then click the Pencil icon beside Pay.
  3. Go to Step2 or the part where the employee's withholding or W4 are set up, then click the Pencil icon underneath it.
  4. Review the details and make sure all information is correct.
  5. Click Done.

 

If you're still not getting any taxes even if all the details are correct, please contact our phone or chat support teams. They can take a closer look at this to determine why the federal taxes are not calculating for the rest of the employees. Here's how:

 

  1. Click the Help menu in the upper-right hand corner of your QBO account.
  2. Type in "Talk to a human" in the chatbox, then press Enter.
  3. Select Get help from a human.
  4. Click Chat with us or Have us call you. 

 

Here's an article for more details about their contact information: Contact Payroll Support.

 

I'd also like to share these articles for additional guidance and future reference when running payroll in QBO:

 

 

You can always reply to me or post questions in the Community if you need help again. We're always here to guide and assist you.

JenoP
JenoP
May 20, 2021
Hi builtbyjconstruc,
 
Hope you’re doing great. I wanted to see how everything is going about the federal taxes in the employee's paychecks. Was it resolved? Do you need any additional help or clarification? If you do, just let me know. I’d be happy to help you at any time.
 
Looking forward to your reply. Have a pleasant day ahead!
A
AF64
June 29, 2021

I recently added a new employee and QB did not withhold federal taxes on her paycheck.  It did withhold all other taxes on this employee so I know everything is set up correctly .  I spent an hour on the chat after waiting 45 minutes to chat with someone about this and the problem was never resolved. Customer service spent 30 minutes trying to upgrade my services and verifying my account. I am a professional seeing patients all day and I do not have this amount of time to devote to solving a problem . I can withhold a certain amount manually each paycheck for federal taxes but I won’t have any recourse if the employee has to pay additional taxes at the end of the year.  I feel that QB should address this problem in an update . This happened one other time with an employee of mine and she had to pay 2K for federal income taxes.  The only common denominator is that both employees had selected married and no dependents on the W-4 and it was 2020 or later .  Can anyone please help ? 

    R
    Rasa-LilaM
    June 29, 2021

    Thanks for joining this thread, AF64.


    I can see the importance of having accurate paycheck data. This is to ensure your taxes and forms have the correct information. I’ll guide you in the right direction on how to rectify the issue.


    QuickBooks Online calculates your federal and state income taxes by following the IRS Publication (Circular E), Employer’s Tax Guide. The online system computes the federal withholding based on these factors:

     

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

    Also, these are the why taxes are not calculating when processing payroll.

     

    • They are not meeting the taxable wage base
    • They were set to Do Not Withhold for federal and state income taxes in the employee setup.

     

    Follow the steps in this article on how to resolve the issue: Check out this article for more details: 0.00 or no income tax withheld from paycheck.


    If the worker’s tax information is set up properly, I recommend contacting our Payroll Support Team again for further assistance. They have tools to determine the root cause. Once identified, our specialists will assist you on how to apply the permanent solution.


    I’m adding some articles for future reference. These resources provide an overview of payroll tax wage bases and limits. From there, you’ll see answers to common questions about tax forms and payments.

     

     

    Feel free to leave a comment below if you have other concerns. I'll be around to guide and help you out. Take care and have a good one.

    F
    FurryBrownie
    June 29, 2021
    @Rasa-LilaM wrote: greatpeople

    Thanks for joining this thread, AF64.


    I can see the importance of having accurate paycheck data. This is to ensure your taxes and forms have the correct information. I’ll guide you in the right direction on how to rectify the issue.


    QuickBooks Online calculates your federal and state income taxes by following the IRS Publication (Circular E), Employer’s Tax Guide. The online system computes the federal withholding based on these factors:

     

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

    Also, these are the why taxes are not calculating when processing payroll.

     

    • They are not meeting the taxable wage base
    • They were set to Do Not Withhold for federal and state income taxes in the employee setup.

     

    Follow the steps in this article on how to resolve the issue: Check out this article for more details: 0.00 or no income tax withheld from paycheck.


    If the worker’s tax information is set up properly, I recommend contacting our Payroll Support Team again for further assistance. They have tools to determine the root cause. Once identified, our specialists will assist you on how to apply the permanent solution.


    I’m adding some articles for future reference. These resources provide an overview of payroll tax wage bases and limits. From there, you’ll see answers to common questions about tax forms and payments.

     

     

    Feel free to leave a comment below if you have other concerns. I'll be around to guide and help you out. Take care and have a good one.

     

    I spent an hour on the chat after waiting 45 minutes to chat with someone about this and the problem was never resolved. Customer service spent 30 minutes trying to upgrade my services and verifying my account. I am a professional seeing patients all day and I do not have this amount of time to devote to solving a problem . I can withhold a certain amount manually each paycheck for federal taxes but I won’t have any recourse if the employee has to pay additional taxes at the end of the year.  I feel that QB should address this problem in an update . 

    S
    sschriver
    November 8, 2021

    I'm going on two years with this problem.  It is now 11-8-21, and Quickbooks still hasn't fixed the federal payroll problem.  If anyone can suggest an alternative bookkeeping system that allows for inventory,  please send me a message.  I've used Quickbooks for 15 years, but its not meeting my needs anymore.  Stopping payroll to visit the IRS website to manually compute the federal tax amount, as the Quickbooks customer support people keep directing me to do, simply will not work for me.  I have too many people to pay and too little time to do it already.

      T
      turbohuffman
      February 1, 2022

      As of 1/31/2022 this is still unresolved.  

       

      All my existing employees entered prior to 2022 are just fine.  New employees I just entered Jan 2022 are having zero federal tax withheld. 

      L
      LeizylM
      February 1, 2022

      Hi there, turbohuffman. 

       

      I'm here to make sure QuickBooks calculates employees’ federal taxes accordingly. 

       

      Federal taxes, especially federal withholding, are calculated based on the employee's setup. You'll want to review the details to ensure they're taken from your employees' paychecks.

       

      You can check out this article for more information: 0.00 or no income tax withheld from a paycheck.

       

      If the issue persist, we can perform come basic troubleshooting steps to isolate the issue. You can start accessing your QBO account in an incognito or private window for testing and then check. You can use these key shortcuts below for quick navigation:

       

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

       

      Then go back to your main browser and clear the cache if it is now showing correctly. You can also use other supported browsers as an alternative except for Internet Explorer.

       

      To remain compliant with payroll taxes, you can take a look at this article: Payroll Tax Compliance Links. Search for the correct state, and look over the Withholdings section for additional information. 

       

      Let me know in the comments below if you have other questions about payroll taxes in QuickBooks Online. I'll take care of them for you. 

      S
      Seesaw1
      January 10, 2023

      I am having the same issue as the individuals in the previous post.  I have several staff members who have nothing coming out for Federal Taxes. They have filed married (jointly) and they have not claimed any dependents. I have been on the phone with multiple customer service reps and I am placed on hold for 30 minutes or more for them to search the answer. None of them knew the answer. My issue is not resolved. I was told to contact my Accountant or just have the staff member take more out just in case.

       

       

      S
      SirielJeaB
      January 10, 2023

      Welcome to the Community, @Seesaw1. Thanks for reaching out to us.

       

      Let me share some insights about your federal withholding tax concern. In QuickBooks, federal and state income taxes are withheld in line with IRS Publication (Circular E), Employer's Tax Guide. If you notice a paycheck with no income tax deducted, it's possible that the employee did not satisfy the taxable wage basis.

       

      With that said, we may verify your employees' tax setup and determine if the Federal Withholding part is set up accurately. If you need to review and change your employee's information, be sure to check the following items since they are the critical details that allow the system to compute your taxes correctly.

       

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

       

      Here's how to check your employee's profile:

       

      1. Go to the Workers menu, then select Employees.

      2. Search for the employee's name and click the pencil icon next to Pay.

      3. Verify the following sections:

       

      • Personal info to
      • How do you want to pay [employee]
      • What are [employee] withholdings?
      • Tax exemptions field can be found and your employee's W-4 information, then select Done.

       

      4. Click the Profile tab and make any required changes.
      5.Select the Employment tab, then check the information.
      6. Click Done.
       

      For additional information on your employee's federal or state income tax and how to manage your federal W-4 forms, please see the following articles:

       

       

      You can also visit this article to learn how to run, print, and customize payroll reports in QuickBooks Online Payroll: Run payroll reports.

       

      Feel free to get back to us by clicking the Reply button below if you need further assistance managing federal withholding tax in QuickBooks Online Payroll. We're always willing to help you. Keep safe!

      Terms & ConditionsAccessibility statement