Why aren't Federal taxes being taken from one of our employee's payroll?

I hope you're doing well, @larry.mead.

A payroll deduction is an itemized amount withheld from gross pay by an employer, including taxes. I'm here to explain why federal wages cannot be deducted.

Some of the reasons why federal wages may not be deducted:

• The total annual salary is greater than the salary limit.
• The employee's last payroll gross wages are insufficient.

If this isn't impacting your staff, the next step is to double-check their tax status. 

Here's how:

1. Go to Payroll, then Employees.
2. Select your employee.
3. From Tax withholding, select Edit.
4. Select the applicable Federal W-4 form if prompted.
5. In the Federal Withholding Filing Status ▼ dropdown, select Exempt (if applicable).
6. In the State Withholding Filing Status ▼ dropdown, select Exempt (if applicable). 
7. When finished, select Save.

Alternatively, if you need to change your employee's state address, follow this article for the steps in adding the new state to your payroll product: Set up employees and payroll taxes in a new state.

Don't hesitate to reply in this thread if you're getting the same issue with employees' Federal taxes. I'll reply to you as soon as possible. Take care.