Some of our employees aren't having CA state and Federal taxes taken out of their paychecks. And it's not on purpose. Has anyone else had this happen?

Let's review the employee's W-2 set up to know why the taxes aren't taken out from your employees' paycheck, @Peace2603.

The employees W-2 may have set up to Do not withheld for both state and federal taxes. That is why taxes for both weren't taken out from their paychecks. You can see it by editing each of the employee's Pay information.

Here's how:

1. Go to the Payroll menu and then select Employees.
2. Select the employee's name to review.
3. Click the Pencil/Edit icon on the Pay section.
   
4. Select the Pencil icon in the 5th section What are employee's withholdings.
5. Under the Federal withholding and State withholding section, make sure that the Filing status isn't set to Exempt/Do not withhold.
   
6.  Click Save.

Also, please note that the withholding tax will only calculate if the minimum taxable amount has reached, based on the employee's filing status. For more details about the percentage method set by IRS, please see 2021 Percentage Method Tables for Automated Payroll Systems (page 6) on this link: https://www.irs.gov/pub/irs-pdf/p15t.pdf.

If the employee's W-2 set up is correct and they're going to withheld taxes based on the table IRS provided, you'll need to delete their paycheck in the Paycheck List window, then re-create them to reflect the changes that they have withheld the taxes for both federal and state taxes.

Additionally, you can run payroll reports to view useful information about employees' details, worksites, directory, and more.

Let me know if you have other payroll and state/federal taxes related concerns. I'm always here to lend you a hand. Take care and have a nice day!