QuickBooks Payroll Not Withholding Taxes | Here’s How to Fix It

• Posted by Victoria Smith September 22, 2023 Filed in Business #QuickBooks Payroll Not Withholding Taxes  118 views
  click to rate

  

   

  As per the tax regime, every salaried individual must pay taxes to the government from their salary/income. To do so, employees must submit a W-4 form to their employer, which determines how much tax should be withheld from their paycheck for federal income tax, further submitted in QB by employers. However, income tax is not withheld from a paycheck during the tax deduction period, and an unknown error, QuickBooks Payroll not withholding taxes, appeared on your screen. 

  Now, you must be wondering what’s preventing the tax deduction and how you can fix these issues. Don’t worry; here’s a complete guide on why tax is not withheld with their suitable solutions. 

   

  If you require help to fix this error by professionals, dial TFN +1(855)-955-1942 and connect with our team of QuickBooks experts

   

  Know the Reasons Why QuickBooks Not Withholding Federal Taxes

  Here's a list of possible reasons why QuickBooks is not calculating payroll taxes and prevents from withholding the income tax: 

   

  • Some incorrect information is added to employee W-4 tax, which prevents tax withholding from their paycheck.  

  • The entered tax details in the QuickBooks Payroll by an employer are incorrect or hold some error due to which tax is not withheld from paychecks. 

  • The tax form status is set to Exempt or Do Not Withhold, which halts the tax deduction. 

   

  Here's What to Do When You See No tax Withheld from a Paycheck 

   

  Following the given methods will help you fix the common issues in QuickBooks and employees' tax forms. Make sure you're following them carefully: 

   

  Solution 1: Review the Employee's Federal and State Withholding Forms

   

  As an employer, you must get a W-4 tax from each employee to determine how much federal tax will be withheld from a paycheck.

   

  There are possibilities of some error or any incorrect information entered by your employee, which can further interrupt the withholding of income tax from their paycheck. So, reviewing and correcting the issue from the w-4 tax form will help you fix this ongoing error. 

   

  Along with that, also review the factors on which income tax depends on: 

   

  • How much is your employee getting paid?

  • What's the frequency of their paycheck? 

  • What's their marital status? 

  • Number of dependent persons. 

  • Their total income sources. 

   

  Ensure all information required for withholding tax and the proper value of paychecks they receive are correct. 

  Have a look at- Fix the QuickBooks Error 15102 in Easy Ways
  

  Solution 2: Review the Employee's Tax Setup in Payroll  

   

  While setting up payroll for your employee in QuickBooks, you must have added their W-4 form data in their profile section. If the entered data is incorrect or missing in QB Payroll, your income tax from the employee's paycheck will not be withheld. 

   

  Another possible reason why the income tax is not withholding is the tax form status of employees is set as 'Filing Status is Set to Exempt or Do Not Withhold.' So, before submitting the W-4 tax form details in QuickBooks Payroll, ensure their tax status allows income tax deductions. 

  Conclusion

   

  The solutions provided are enough for you to fix the issues of why 'QuickBooks Payroll not withholding taxes.' If you have further concerns about the same error, dial TFN +1(855)-955-1942 and get free expert guidance.  
  
  Recommended to Read- How to Resolve QuickBooks Error 1402