QuickBooks Payroll Taxes Not Being Deducted
When managing payroll in QuickBooks, one of the essential tasks is ensuring that payroll taxes are accurately calculated and deducted from employees' paychecks. However, there may be instances where payroll taxes are not being deducted correctly, leading to errors in tax reporting and compliance. Understanding the causes and solutions can help resolve this issue efficiently.
Causes of Payroll Taxes Not Being Deducted
Incorrect Employee Setup: One of the most common reasons for payroll taxes not being deducted is incorrect employee information. This includes inaccurate tax setups, such as incorrect tax exemptions or classifications.
Outdated Tax Tables: QuickBooks regularly updates tax tables to reflect the latest federal, state, and local tax regulations. If your tax table is outdated, payroll taxes may not be calculated correctly.
Inactive Payroll Subscription: If your QuickBooks Payroll subscription has expired or is inactive, the software may stop calculating payroll taxes altogether.
Exempt Employee Status: Employees marked as exempt from specific taxes (like Social Security or Medicare) will not have these taxes deducted. This can occur due to incorrect payroll setup.
Company Preferences: Payroll preferences within QuickBooks may be incorrectly configured, leading to the wrong tax calculations or no deductions.
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