Know Why QuickBooks not Withholding Taxes and How to Fix It

You won’t be able to calculate employees’ wages accurately if QuickBooks not withholding taxes. This can be caused by several reasons, such as an outdated QB, a wrong filing status, or if the employee's annual compensation is more than the salary cap. That’s why this needs to be resolved as soon as possible. For this, we have provided you with this detailed blog, including sections about the causes and elimination methods. Read the blog to get it fixed.

If you fail to resolve the QuickBooks not withholding taxes issue on your own, don’t worry, we can help. Dial 1-855-888-3080 and talk to a Pro advisor for help.

Potential Culprits: Why QB is not Withholding Federal Taxes

Take a walk-through of this segment to know the reasons that lead to the withholding tax issue.

• It takes place if the employee's annual compensation is more than the salary cap.

• If the QB Desktop is outdated.

• Due to an inactive payroll subscription.

• This occurs if the employee has “Do Not Withhold” status.

• Another reason behind it can be the wrong filing status of the employee.

Step-by-Step Guide to Solve the QuickBooks not Withholding Taxes

We have mentioned 3 practical solutions that can help you eliminate QuickBooks Payroll not withholding taxes issues. See what these methods are:

Solution 1: Update QB to the recent release

• Open the QB application.

• Go to the Help menu.

• Choose Update QuickBooks Desktop.

• Click on Update Now. 

• Then, tap Get Updates.

• After you have downloaded the updates successfully, close QB and when the confirmation message of installation appears, choose Yes.

Solution 2: Verify employees’ payroll information

• Go to the Employees menu.

• Choose Employee Center.

• Click on the employee's name two times.

• Later, move to the Payroll Info option.

• See if the Pay Frequency is accurate.

• Tap Taxes.

• Hover over the Federal tab.

• Go through the Filing Status and Allowances fields.

• If corrections are needed, do that.

• At last, tap on OK twice. 

Recommended to read: How to fix QuickBooks error ps038?

Solution 3: See if you have accurately set the W4 status

• Go to the Employees tab.

• Choose Employee Center.

• Double-click on the employee name.

• Tap on the Payroll Info tab.

• Select Taxes.

• Hover over the Filing Status and double-click on the details of the Federal and State tab.

Solution 4: Update payroll tax table 

Step 1: Know the version of your payroll tax table

• Go to the Employees tab.

• Choose Get Payroll Updates.

• Look at the number present beside the tax table version.

• If you go through the latest payroll news and updates section, you will get to know if the version is correct or not.

• Tap on the Payroll Update Information.

Step 2: Update to the latest tax table

• Go to the Employees tab.

• Choose Get Payroll Updates.

• Click on the Download Entire Update option.

• Pick Update.

• After the latest payroll tax table is downloaded, you will see an informational window on the screen.

In a Nutshell

We have covered all the necessary information that will be required to eliminate the QuickBooks not withholding taxes issue. In essence, it's causes and troubleshooting methods. If you are still stuck with it, dial 1-855-888-3080 and connect with a Pro Advisor.

You may read also: How to Get Latest Payroll News and Updates in QuickBooks Desktop Payroll