Thanks for joining this conversation, @SFM_Admin.
QuickBooks is always following the IRS Publication (Circular E) when it comes to withholding federal and state income taxes.
If a paycheck shows $0.00 or no income tax withheld, it may be caused by any of the following:
- They are not meeting the taxable wage base.
- They were set to Do Not Withhold for federal and state income taxes in the employee setup.
To check if an employee was set to Do Not Withhold, please refer to this article: 0.00 or no income tax withheld from paycheck.
I also recommend checking out the IRS Publication (Circular E), Employer’s Tax Guide, and proceed to page 21 for more information about Withholding From Employees' Wages.
Please leave a comment below if you have any other questions or concerns. I'll be more than happy to help. Have a good one!
