Hello, @Anthony Howard.
I'm here to share some information on how QuickBooks calculates your payroll taxes.
First, here are the factors that may affect the tax calculation on your paycheck:
- The total annual salary exceeds the salary limit.
- The gross wages of the employee's last payroll are too low.
- The tax table is not updated.
To resolve this recurring issue, let's make sure that your QuickBooks software and payroll tax table is updated to the latest version. Once completed, let's close and open QuickBooks to ensure that all components are updated.
Now, let's review your payroll information. This is to make sure that all information is entered properly.
- Go to Employees, and then Employee List.
- Select the name of the employee.
- Click the Payroll Info tab, and then select Taxes
- On the W-4 Form drop-down, select 2020 and Later
- Make sure your employee complies with the points on the Federal W-4 form popup, and then click OK.
- Edit the employee's W-4 information into the form
- Select OK to save.
Just a heads-up, allowances are no longer allowed base on the updates from the IRS. Here's an article you can read to learn more: What’s changing with the Federal W-4?
Lastly, I've added these articles to learn more ways to fix payroll taxes that are not calculating:
Know that you're always welcome to get back to us here if have other questions about managing your employees' payroll and taxes. Have a good one!
