fed and state tax not taken out on my employees payroll?

Hi @stefaniebozeman4,

Welcome, and thanks for bringing your concern to the Community! I’d be delighted to share some insights about why federal taxes aren't deducted from your payroll. 

Here are the possible reasons why it's not calculating:

• Annualized salary exceeds the salary limit
• The gross wage of the employees is too low

Additionally, it could be that your payroll taxes weren't set up in the profile or they were set to Do Not Withhold.

To check:

1. Click the Workers tab on the left.
2. In the Employees tab, find and click your employees' names one at a time.
3. Click the Edit employee button.
4. In the Pay tab, click the Edit icon (pencil image) in the What is [employee's name] withholdings?
5. Verify the tax setup of your employees and correct them.

If everything was set up correctly, these factors may affect the calculation of tax. Our system calculates the tax based on these factors:

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

For future reference, here's your guide in computing the exact withholding amount, go through the IRS 2018 Publication 15.

Get back to me here if you have another concern. I'm always around to guide you more.