If you have run payroll or issued a paycheck to your employee first time, then payroll tax calculations may incorrect are due to an incorrect setup. It can happen with you that the previously issued paychecks to a given employee contain correct tax calculations but a new attempt to produce a paycheck shows incorrect payroll taxes, even though no changes were made to payroll configuration. Do not worry, we are here to help you. You can also contact to accounting experts of QuickBooks Payroll Support team.
In this situation, incorrect calculations of payroll taxes are usually caused by one of several factors:
· If youare using an out-of-date tax table.
· If the data of your QuickBooks company file (.qbw)is corrupted.
· If all taxes are calculated at 0.00, that may indicate an incorrect calculation.It may be due, such as employer FICA (Federal Insurance Contributions Act) QuickBooks calculate the wages on a paycheck annually and if it is small, federal or state withholdings can be correctly calculated as 0.00, even when prior paychecks for the same employee included these withholding taxes.
Fix an incorrect payroll tax calculation:
First, make sure that you have the latest payroll update. See an article on setup of QuickBooks payroll software.
After installation of the latest update, do follow the steps below:
· Create a new paycheck for the same employee whose paycheck previously showed incorrectly calculated payroll taxes.
· If you are getting correct payroll tax calculations, the payroll update solved the calculation problem.
· If you are sill getting incorrect payroll tax calculations, complete the steps to save the paycheck.
If this problem still exist then your QuickBooks company file likely has data corruption. In this situation, you can solve this problem with QuickBooks’s Rebuild utility. Once you’ve successfully run the Rebuild utility, try to issue a paycheck to the same employee whose paycheck previously contained an incorrect tax calculation.
To prevent an incorrect check from being issued, do some steps before addressing the data corruption:
· Open the Employee Center.
· Locate the employee with the incorrectly calculated paycheck that you just created.
· Deletethe paycheck with the incorrect payroll tax calculation.
If the payroll tax calculation still showing to be incorrect, it’s possible that your company file has data damage that the Rebuild utility couldn’t fix or there are other issues involved. An undamaged QuickBooks company file running with the latest payroll updates and correct payroll configuration will produce correct payroll tax calculations.