I'll show you how to set up contribution reimbursement, @David620.
Federal calculation depends on the employee's W4 information such as the items for pretax withholding and their taxable wage.
The following are potential causes for QuickBooks' incorrect calculation of federal taxes:
- Total annual salary exceeds the salary limit.
- The gross wages of the employees last payroll are too low.
- Ensure to run the latest payroll update to keep your taxes updated.
If your employees' profile is properly configured, you can review them if the federal withholding is not being deducted correctly. The following criteria are used by QuickBooks to determine the federal withholding:
- Taxable wages
- Number of allowances/dependents
- Pay frequency
- Filing status
Here's how to review your employees’ payroll information:
- Go to Employees menu.
- Choose Employee Center.
- Double-click the employee’s name, one at a time.
- Select Payroll Info on the left.
- Please make sure the Pay Frequency is correct.
- Click the Taxes button.
- In the Federal tab, review the Filing Status and Allowances fields. Make the necessary corrections.
- Hit OK.
- Click OK again.
You can read this article to learn more about the Federal taxes not calculating properly: Troubleshoot paychecks calculating incorrectly.
Let me know if you have questions about payroll deductions. I'm always here to help. Have a great day.
