Hello , I am an electrical contractor and just set up a new employee. No federal tax was withheld. I tried deleting the check , re- entering the employee’s W4 info , double checking the tax exempt status and all other info. I created another check and still same problem- federal withholding was zero. The only difference with this employee to my others was the dependents , this person has 3 kids and a spouse which put the dependents at $6,500. I went into the W4 and changed the dependents to zero to see what would happen when I ran payroll for this employee. I created the check and Federal tax was withheld. It seems to be the dependents affecting my situation. I am not a tax expert that is why I rely on QuickBooks to take care of these deductions. So it’s one of two things:
1) It’s possibly correct that nothing is being withheld because of this person’s dependents- maybe the withholding kicks in after a certain amount????? Don’t know not a tax guy. Don’t have time to research it. Trying to run a business.
2)It’s a glitch in QuickBooks and needs to be addressed ASAP.
Not sure which it is but this just happened to me yesterday 9/14/2020. Was going to contact support but started searching the forums first. I may just leave the dependents at zero if the employee approves so that they don’t get hammered in taxes later- until this gets resolved.
