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MEmerson2
March 28, 2024
Question

Payroll Tax deductions

  • March 28, 2024
  • 1 reply
  • 0 views

Is anyone else having issues with more Federal taxes being withheld from employees paychecks than what should be? This employee is filing single, claiming 0, and has a W4 of 2020 or later. We've done all the payroll updates from Quickbooks. I've talked w/ Quickbooks and our account and neither of them can explain whey Quickbooks is pulling a higher federal tax withdraw than what it should be. 

1 reply

L
LollyNino_C
March 28, 2024

Pleased to have you here, @MEmerson2.

 

Thank you for dedicating time to search our Community for possible solutions. I'd be delighted to provide insights into the reasons behind the incorrect deduction of federal taxes in QuickBooks Desktop (QBDT).

 

Here are the possible reasons QuickBooks aren’t calculating federal taxes properly:

 

  • Total annual salary exceeds the salary limit.
  • The gross wages of the employees' last payroll are too low.

 

You can pull up Payroll Summary report or Payroll Detailed reports to check the calculation of one of the employee's paychecks to see if it matches QuickBooks. To help figure out the exact withholding amount, please go through the IRS 2018 Publication 15.

 

If the calculation is incorrect, you can create payroll liability adjustment. However, if it's correct let it be. 

 

Also, here are the lists of articles you can read more about paycheck calculation in QBDT:

 

 

For future reference, we also have a variety of reports you can pull up in QuickBooks Online Payroll in case you need help checking up on your employees' data and other payroll-related concerns: Run payroll reports.

 

Reach out to me again if you have other payroll-related concerns or questions about QuickBooks. I'm always willing to assist you in making your business run smoothly. Have a wonderful day!

M
MEmerson2Author
March 29, 2024

Hi,

Thank you for the informative response, but unfortunately all of those options either don’t apply or have been tried. I was on the phone today for 1 1/2hrs with payroll customer service, with no answers. Myself and our account both reviewed the withdrawals and our figures were both lower than what quickbooks is pulling when we calculated them. Unfortunately I don’t have a good explanation for these few employees who are complaining about all of the taxes that are being withdrawn. 

FishingForAnswers
FishingForAnswers
March 29, 2024

@MEmerson2  Do you have more specific details available? How much is actually being held out, and how much are they grossing?

 

Without more details, the only idea that comes to mind is to check if the '2 jobs' box is checked under their Federal Tax Withholding tab. That would cause the withholding to be higher than what would normally be calculated.

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