Generally QuickBooks Desktop is calculating percent (%) based taxes, for example, Social Security, Medicare, Federal Unemployment (FUTA), State Unemployment Insurance and State Unemployment Insurance and State Disability Insurance wrongly. These tax amounts may come into sight on the paycheck as:
Tax amount displays $0.00.
Collected tax amount is wrong.
Tax item does not show at all on a paycheck.
Tax amount continues to collect after the yearly limit has been arrived out.
In this blog, I described some general troubleshooting that will help you to determine the source of payroll tax errors calculation and provide solutions on how to resolve these errors. Have queries contact Support QuickBooks Error team.
Payroll Wage and Tax calculations are obtained from the payroll data and transactions you entered in QuickBooks Desktop. To make sure accurate calculation of wages and tax amounts, your employees and payroll items should be set up correctly.
It is good if you practice running payroll reports on the regular/systematic basis to review your employee(s)' payroll data detail so you can grab mistakes before the tax filing season.
If the tax calculation error exists only on a specific paycheck:
Learn, how QuickBooks Desktop calculate payroll taxes
Having a 0 amount or a different amount than usual on a paycheck does not always indicate wrong calculation. More often than not, it is because QuickBooks Desktop is just working as designed. Below is some example:
Federal and State Income Tax calculations are based on the following:
agency's wage and tax calculation table which is updated by the Tax Table.
amounts collected are also affected by filing status, the number of allowances
changes in pay frequency (creating extra paycheck outside of normal pay schedule)
creating paycheck with wages that have lesser or larger amount than what employee normally gets in a pay period
Additional Medicare starts calculating on a paycheck when an employee has reached $200,000.00 in wages for the present year.
2. To fix a paycheck that has wrong tax calculation, see following steps:
If the calculation error exists only on a particular paycheck, it may be due to an outdated tax table version.
Do a tax table update before doing following steps:
Revert the paycheck if you are still in the process of creating the paycheck.
Delete the paycheck if you have not provided it to the employee.
Vacant the paycheck if you have already issued the paycheck. When recreating the paycheck, any difference in net amount can be adjusted on next payroll.
If need any help in QuickBooks you can contact QuickBooks Customer Support HelpLine Number +1 855 441 4417. We are always ready to help our QuickBooks users. So call us and get all your queries answer.