I can share some information on how we calculate federal taxes, @user3rdstreethybrid. The amount of federal income tax (FIT) withheld from employees' paychecks is not only based on the number of hours they've worked. It also depends on their marital status, the number of withholding allowances (exemptions) they claim on Form W-4, pay frequency and their projected annual income. It's also possible that you've set the employee to Do Not Withhold for federal and state income taxes in the employee setup. To check:Go to the Payroll menu and then Employees.Select the name of the employee and click the edit (pencil) icon beside Pay.Next to the withholding section, select the edit (pencil) icon.Check the Federal Filing Status/State Filing Status. Check these articles for more information: Form W-4: Employee withholding allowances0.00 or no income tax withheld from paycheck I want to make sure everything is taken care of for you, so please let me know if you have any other issues with your employees profile in the Reply section. I'm always here to help. Have a wonderful rest of the day!

Question

There are no federal taxes being taken out of our employees paychecks. The most hours worked on a paycheck is 20 hours. Can someone help me understand?

Forum|Forum|5 years ago
February 6, 2021
8 replies
42 views

No text available

QuickBooks Online

MJoy_D

QuickBooks Team

I can share some information on how we calculate federal taxes, @user3rdstreethybrid.

The amount of federal income tax (FIT) withheld from employees' paychecks is not only based on the number of hours they've worked. It also depends on their marital status, the number of withholding allowances (exemptions) they claim on Form W-4, pay frequency and their projected annual income.

It's also possible that you've set the employee to Do Not Withhold for federal and state income taxes in the employee setup. To check:

Go to the Payroll menu and then Employees.
Select the name of the employee and click the edit (pencil) icon beside Pay.
Next to the withholding section, select the edit (pencil) icon.
Check the Federal Filing Status/State Filing Status.

Check these articles for more information:

I want to make sure everything is taken care of for you, so please let me know if you have any other issues with your employees profile in the Reply section. I'm always here to help. Have a wonderful rest of the day!

C

cowboystatemeats

The federal taxes for my employees is not being withheld from their checks. I've double checked their profiles and cannot see why. Please help

M

MadelynC

Moderator

Help has arrived to ensure QuickBooks calculates employee’s federal taxes accordingly, @cowboystatemeats.

The are several reasons for federal taxes not being withheld from your employee's paychecks. They are not meeting the taxable wage base, employee’s preferences were set to Do Not Withhold, and possibly, browser issues.

The online platform uses the browser’s cache to run faster. However, these can sometimes become corrupted, which affects the platform's functionalities.

You can refer to my colleague's recommendation above to review their setup. If their profiles and records are correct. We can perform some steps here that can fix your concern.

You can start accessing your QBO account in an incognito or private window for testing and then check. You can use these key shortcuts below for quick navigation:

Google Chrome: Ctrl + Shift + N
Safari 11 or newer: ⌘ + Shift + N
Mozilla Firefox: Ctrl + Shift + P
Microsoft Edge: Ctrl + Shift + P

Then go back to your main browser and clear the cache if it is now showing correctly. You can also use other supported browsers as an alternative except for Internet Explorer.

Federal and state income taxes are withheld in accordance with IRS Publication (Circular E), Employer’s Tax Guide. Check it to learn more.

Should you need further assistance with payroll, feel free to drop us a comment below. We'll get back to you as soon as we can. Take care!

R

RCV

QuickBooks Team

I can see the importance of having accurate paycheck data. This is to ensure your taxes and forms have the correct information. I’ll guide you in the right direction on how to rectify the issue, tamara8.

I've checked our records and there's no reported case about this one where no federal payroll taxes are being taken out of employee payroll. QuickBooks Online (QBO) calculates your federal and state income taxes by following the IRS Publication (Circular E), Employer’s Tax Guide. The online system computes the federal withholding based on these criteria:

Taxable wages
Number of allowances/dependents
Pay frequency
Filing status

Also, taxes are not calculated when processing payroll if they are not meeting the taxable wage base and they were set to Do Not Withhold for federal and state income taxes in the employee setup. You can follow the steps in this article on how to resolve the issue: Troubleshoot no income tax withheld from a paycheck.

If the worker’s tax information is set up properly, I'd recommend contacting our Payroll Support Team for further assistance. They'll pull up your account in a secure environment and investigate what's causing this issue.

I’m adding some articles for future reference. These resources provide an overview of payroll tax wage bases and limits. From there, you’ll see answers to common questions about tax forms and payments.

To remain compliant with payroll taxes, check out this article: Payroll Tax Compliance Links. Just look for your state, and go to the Withholdings section for additional information.

Let me know in the comments below if you have other questions about payroll taxes in QuickBooks Online. I'll take care of them for you. Take care always.

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