Skip to main content
Q
Quentin Hoffman
October 22, 2022
Solved

Federal Income Tax Withholding

  • October 22, 2022
  • 3 replies
  • 0 views

I have an employee filing as Head of Household. He has two dependents, so box 3 is $4000 No other deductions, no other adjustments or other extra withholdings. His year to date gross earnings are over $27,000 No federal income tax has been withheld year to date. Quickbooks is not calculating or withholding any money from his paycheck nor paying any taxes to the IRS for this employee. How can I correct this?

Best answer by Rainflurry

@Quentin Hoffman 

 

The employee hasn't earned enough in wages to pay any federal income tax yet.  HoH filers don't pay any income tax until they earn more than $19,400 (standard deduction) and with the $4,000 child tax credit, he would need to earn approx. $55,000 before owing any federal income tax.

3 replies

L
LeizylM
October 22, 2022

Let's take a look into why your payroll taxes aren't calculating.  Quentin Hoffman.

 

Federal taxes calculate based on the details from an employee's profile. For the federal withholding taxes, QuickBooks calculates them based on the following elements:

 

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

 

It's also possible that you've set the employee to Do Not Withhold for federal and state income taxes in the employee setup. We'll go ahead and check them out.

 

  1. Go to the Payroll menu and select Employees.
  2. Click the name of the employee, then click the Pencil icon beside Pay.
  3. Go to Step2 or the part where the employee's withholding or W4 are set up, then click the Pencil icon underneath it.
  4. Review the details and make sure all information is correct.
  5. Click Done.

 

If the issue persists, I suggest contacting our Customer Care Team. They can take a closer look at this to determine why the federal taxes are not calculated. Here's how:

 

  1. Click the Help menu in the upper-right-hand corner of your QBO account.
  2. Type in "Talk to a human" in the chatbox, then press Enter.
  3. Select Get help from a human.
  4. Click Chat with us or Have us call you.

 

I've included this article for more insights into configuring reports and creating a custom payroll report in QuickBooks:

 

 

Feel free to get back to us if you have other questions about withholding taxes. I'm always here to help.

Rainflurry
RainflurryAnswer
October 23, 2022

@Quentin Hoffman 

 

The employee hasn't earned enough in wages to pay any federal income tax yet.  HoH filers don't pay any income tax until they earn more than $19,400 (standard deduction) and with the $4,000 child tax credit, he would need to earn approx. $55,000 before owing any federal income tax.

    B
    busymom0423
    November 2, 2022

    How was the $55,000 calculated?

    Rainflurry
    Rainflurry
    November 2, 2022

    @busymom0423 

     

    How was the $55,000 calculated?

     

    $55,000 HoH gross income

    ($19,400) less HoH standard deduction

    = $35,600 taxable income

     

    $3,979 tax due on $35,600 taxable income for HoH filer

    ($4,000) less child tax credit

    =$21 tax refund

     

     

     

    B
    bhrysh
    March 14, 2023

    OKAY THIS IS WHAT HAPPENED. THE ENTIRE YEAR OF 2022 MY WIFE DID NOT GET BUT $9.26 TAKEN OUT OF HER CHECK FOR FEDERAL INCOME TAX WITHHOLDINGS. I DID NOT REALIZE THIS UNTIL WE RECIEVED HER W-2. SHE HAD HER W-4 MARKED AS MARRIED FILING JOINTLY. I DON'T UNDERSTAND WHAT HAPPENED WITH QUICKBOOKS PAYROLL, ALL OF MY OTHER EMPLOYEES WERE WITHHELD JUJST FINE.

     

    C
    Carneil_C
    March 14, 2023

    I'd also feel the same if I were in your position, @bhrysh.

     

    There are a few possible instances to further determine why your wife only withheld $9.26 for the entire year of federal income tax withholding.

     

    This needs a screen-sharing session to investigate this matter and be corrected if need be. That said, I suggest contacting our QuickBooks Online Payroll Support team. I'll show you how: 

     

    1. Go to Help (?), then click Contact Us.
    2. Please enter your question and select Continue.
    3. Review and Select from the following: Ask the community, Have us call you, or Chat with us.


     

    Moreover, I've added this article if you want more information on why an employee's federal or state income tax is 0.00 in QuickBooks: Troubleshoot no income tax withheld from a paycheck.

     

    If there is anything else I can do to assist you with QuickBooks, particularly payroll-related activities, you can reach out to the Community at any time. I'll be standing by for your response. Have a great day and stay safe.

    D
    Dexter1904
    May 11, 2023

    This is not an answer...sending us to this article and that article. I have been dealing with the same FOR 3 YEARS running. I HAVE SAT ON THE PHONE FOR umpteen hours, DOING THE SAME CHANGES, TO SO CALL CORRECT THIS INTERNAL ISSUE. IT IS  A QB ISSUE. CLASS ACTION SUIT IS THE ANSWER! NOT ONE PERSON @ QB can fix or give a solution. WTF? 

    Terms & ConditionsAccessibility statement