Why aren't federal taxes being taken out of my employees paychecks??

I'm here to ensure your employees' paychecks will take out federal withholding taxes, @kemetcoffee-gmai. It helps in correctly deducting taxes and accurately calculating the amount paid to the IRS.

Before proceeding, please note that the withholding tax will only calculate if the minimum taxable amount has been reached, based on the employee's filing status. For more details about the percentage method set by IRS, please see page 6 on this link: https://www.irs.gov/pub/irs-pdf/p15t.pdf.

After that, make sure that their profiles are set up correctly. QuickBooks Online (QBO) also calculates the federal withholding based on these factors:

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

I'd recommend performing the steps below to check your employee's profile:

1. Go to the Payroll menu.
2. Select Employees.
3. Locate and click the name of the employee.
4. Click the Pencil icon beside Pay.
5. Verify each section from Personal info to How do you want to pay [employee] carefully. Please make sure to check the What are [employee] withholdings? section where the Tax exemptions field can be found and your employee's W-4 information.
6. Select Done.
7. Click the Profile tab, then make necessary updates.
8. Select the Employment tab, then correct any needed information.
9. Hit Done.

Once done, you'll have to delete their paycheck in the Paycheck List window, then re-create them to reflect the changes. For detailed steps, browse this link: Create Paychecks in Online Payroll.

Additionally, you can verify if QuickBooks provides the right withholding amount by calculating it manually. For the complete instructions, you can refer to pages 44 - 45 in this article: 2023 Publication 15 - Internal Revenue Service.

Visit this page if you have common questions about tax forms and payments: Get answers to your payroll tax payment and filing questions.

I encourage getting back on this thread if you need assistance managing your employees' paychecks. I'm always here to back you up.