How to Check when no Federal Taxes are Withheld in QuickBooks Payroll
Published 11/29/2011 | 
Hi Ruth… I just set up a new employee with 1 exemption in Intuit Online Payroll. After inputting his hours (16.86), I viewed his check and there is no federal taxes withheld. His gross pay is $202.32 and he’s Married with 1 exemption. Is that normal?
He doesn’t make enough yet to have any withholding. I ran your information through Intuit Online Payroll’s Paycheck Calculator and it matches up to his paycheck perfectly.
This article is provided for informational purposes and is not intended to be construed as legal, accounting, or other professional advice. For further information, please consult appropriate professional advice from your attorney and certified public accountant.
Written by +Ruth Perryman, CMA, CFE, CFM, MBA
Ruth is the president of The QB Specialists, an Intuit Premier Reseller that offers huge savings and expert advice on QuickBooks POS and QuickBooks Enterprise. She is an Advanced Certified QuickBooks ProAdvisor and a member of Intuit’s Trainer/Writer Network. She is also certified in QuickBooks POS and QuickBooks Enterprise and has provided expert QuickBooks help to thousands of businesses all over the world since 1996.
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Hello Ruth!
You seem so knowledgeable, I hope you can help me!
I am the only employee of a new corporation.
(There are three owners that get paid in equity, I am the only one with a paycheck.)
The company is brand new – and I am just setting up QB today, April 18th, 2013. I have QB Enhanced Payroll Services.
Although I am just setting up the Payroll today, my first paycheck was on April 1st, 2013.
I have entered my 1st paycheck into QB, as being $760 on April 1st.
It has calculated what the Company owes in taxes (Fed and CA State Unemployment, SS, Medicare, ETT) but it has not calculated any withholdings for me, the employee. Nor has it calculated the taxes I owe on SS, Medicare, FIT or CA Personal Income Tax.
This transaction does not show up under paychecks, but only shows up under Year-To-Date Adjustments.
How can I get QB to calculate these things for me? Do I have to write a check to the company for my withholdings? Any advice?
Thank you!
Hi Melanie,
I’m assuming the $760 is your net check? If so, check the box in the bottom right corner of the paycheck to gross it up.
Where do you enter the tax tables manually? I have the tax table information from a tax accountant thru my day job that uses a different accounting software. I use QB and run QB payroll manually for a very small company my husband and I own. I have just been looking up the withholdings from the current Pub 15. It would be nice to enter the changes as I get them so I don’t have to go thru the extra ‘look up” step. (I do not have a payroll subscription because of the small number of employees.)
Hi Becky,
Unfortunately, you need to calculate the taxes manually and then enter them on the paycheck.
Hi, Found this thread checking on a check that had no taxes with held. We have a subscription but this one employee claims married with 10 allowances. It always tells me that her check is too little to with hold federal taxes, Any help??
Hi Adrian,
Go to the employee’s Payroll Info tab, select Taxes, and check to make sure that the Filing Status and Withholding is entered correct and that there isn’t anything in the Extra Withholding field.
Ruth
Hello – we just upgraded to QB Accountant 2013 … and there was a problem on calculating my Federal withholding.
Just before the upgrade, I changed my withholding from 1exemption to 2 (with an add’l $3 withheld). But it initially calculated my FIT as zero. After changing it back to 1 exemption, it calculated correctly – and so I let it go.
Is this an upgrade hiccup – and if I change it back to 2 exemptions before the next pay cycle – will it calculate correctly?
P.S. – we do not have a subscription (only six employees) and everyone else calculated correctly.
Hi Ed,
QuickBooks will not give you current tax tables without a payroll subscription. You have to manually calculate them yourself.
Unfortunately, if you haven’t kept up with all the payroll tax changes (and there have been many recently) none of your calculations are going to be accurate since the last time you updated them.
This is one reason I would never consider doing payroll without at least a Basic payroll subscription. Keeping up with the tax changes is a monumental task and the consequences for getting them wrong is immense.
I recommend contacting a payroll tax professional in your state to help you calculate your taxes properly and with the amended returns you’ll undoubtedly need to file.
I’m really sorry for the bad news.
Ruth
I found this thread because I also am having problems with tax withholding.
I am brand new in the office, trying to run my first payroll. All the checks look good, except none of them have any taxes withheld. What am I doing wrong?
Hi Connie,
Do you have a payroll subscription? If not, you’ll have to enter all the tax tables manually.
Ruth