I can help you resolve the error you're having to calculate your federal withholding correctly, @Bookkeeper4youuuu.
As mentioned by my colleague above, the following factors may affect the tax calculation on your paycheck:
- The total annual salary.
- The gross wages of the employees.
- The tax table is not updated.
Just make sure to have the latest release and newest payroll tax table. This will make sure that you have the latest features and fixes and stay compliant with paycheck calculations in QuickBooks Desktop (QBDT).
You can check the following article for detailed guidance on how to keep your software updated and get the newest payroll tax table:
Then, make sure to set up your employees’ profiles correctly. QuickBooks calculates the federal withholding based on these factors:
- Taxable wages
- Number of allowances/dependents
- Pay frequency
- Filing status
To review your employees’ payroll information:
- Go to the Employees menu and choose Employee Center.
- Double-click the employee’s name and select Payroll Info on the left.
- Please make sure the Pay Frequency is correct.
- Click the Taxes button and in the Federal tab, review the Filing Status and Allowances fields. Make the necessary corrections.
- Select OK and then OK again.
Here’s also an article that tells you more on how to fix payroll taxes that are not calculating:
Let me know if you need further guidance in resolving your federal withholding calculation by leaving a reply below. I’m always here to lend a hand.
