income tax is no longer being deducted from an employee's pay and I can figure out why

I'd be happy to help you sort it out, Linda.

The discontinuation of federal income tax deductions from paychecks in QuickBooks Online Payroll may be due to an employee profile setting or wages not meeting the withholding threshold.

You must first check the employee's Federal W-4 settings in their profile, as the tax calculation is directly dependent on this information.

Here are the direct steps:

1. Navigate to My Apps, then select Payroll.
2. Next, select the Employees tab.
3. Click on the name of the affected employee to open their profile.
4. Scroll down to the Tax withholdings section and click Start or Edit.
   
   
   
    
5. Review the Federal tab.
    

Once you have verified and corrected any necessary information, click Save to apply the changes.

Next, verify if the employee's gross wages are low enough for federal withholding based on their filing status and allowances. Low pay could result in no tax deduction due to standard deductions and credits.

Lastly, after updating the W-4 settings in the employee's profile, changes won't apply to already processed paychecks. To adjust the tax deduction on the latest check, you'll need to delete and recreate it.

If you require further assistance, tap us by leaving a comment below.