I am having an issue where quickbooks is automatically taking out federal taxes according to the IRS Publication 15-T, however overall they are not taking enough from employees paychecks. For example, one of our employees has made 17,625 (adjusted gross) so far for 2025, but intuit has only taken out 1,289 in federal taxes. Given that this employee makes ~70k/year married filing jointly, their tax rate is around 12%, so this employee already owes over 1k for 2025! And YES the W-4 tax settings in quickbooks are correct!
I asked the representative on Quickbooks support via phone if I can add additional federal witholding to the paycheck, and she said that if I do, it will likely result in internal errors and fees from quickbooks, and that I will separately need to inform the IRS, even though we pay for fully assisted payroll.
Does anyone know if this is true? I'm not sure if I want to believe her.
I feel like I'm in an awful position having to tell my employees that my software can't properly deduct their taxes and that they'll have to make their own quarterly payments to the IRS unless they want to owe a lot on their tax return.
