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M
Meredith123
July 3, 2024
Question

State Payroll Taxes

  • July 3, 2024
  • 1 reply
  • 0 views

All of our employees have been working for us for years+. This year, QBO is not taking out state tax. Our employees are making well over the threshold. All of them are set to have taxes taken out for both Federal and State. Previous years, we have had no problems. The only changes we have done is we recently added AFLAC deductions but I don't see where this would have changed any settings. I can manually deduct them from their paychecks but why isn't QBO automatically calculating for me. Are their specific settings I need to look at. I tried using the chat today and it froze/wouldn't send my messages after we finally verified that I am an account user 😞

1 reply

R
Rea_M
July 3, 2024

I'll provide details on how payroll taxes are calculated so you can identify why QuickBooks isn't taking them out for both federal and state from your employees' paychecks, Meredith123.

 

QuickBooks bases its calculation of federal income tax (withholding) on several factors, including the employee's W-4, pay frequency, gross wages, and the percentage or wage bracket method. State income taxes, on the other hand, vary from state to state.

 

Furthermore, there may be instances where federal or state income taxes will display as $0.00. This is a common occurrence when the gross wage of your employee is below a certain threshold or if they have claimed Exempt. For more details, please see this article: Understand how your payroll taxes are calculated.

 

Additionally, you may want to run payroll reports to get a detailed analysis of your company's financial status and access valuable insights regarding your business and employees.

 

You can always let me know in the comments if you have any other payroll concerns or questions about federal and state taxes. We in the Community will get you covered.

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