Why QuickBooks not withholding federal taxes: (Here is a way to solve it instantly)

You or your employees might get the issue in this accounting software that says QuickBooks is not withholding federal taxes. For example, the state withholding on the paycheck is not calculated by QuickBooks. In such a situation, you may face the issue of QuickBooks Payroll Not withholding Taxes and may not be sure how to deal with this. But do not worry; this is common if an employee does not generate enough income to meet the maximum threshold value.

However, if you would like to have the taxes withheld from your employee's paycheck, just refer to the quick fix in the next part of the article.

But first, understand exactly why you are having the issue: QuickBooks is not withholding federal taxes.

Need help with an issue regarding your technology? Call now for approved solutions that meet your needs. Our QuickBooks pro support team can always assist you with your inquiries.

Destructive reasons that lead to QuickBooks not withholding federal taxes error

1. Your annual total salary exceeds the limit.

2. Very little amount for gross earnings in the last pay period of the employee.

3. You are using outdated QuickBooks Payroll tax tables.

4. Your QuickBooks software is overdue for an update.

Proven Solutions to fix QuickBooks not withholding federal taxes

Several solutions have been given to help our users solve the error immediately. You can follow the below methods to resolve it:

Solution 1: Update your payroll tax table

1. In Employees, choose to Get Payroll Updates.

2. To find your tax table version:

   • Under You are using tax table version: look at the number beside it.

   • To determine if that is the most current version available, check for the latest payroll news and updates.

   • To access more information regarding your tax table version, select Payroll Update Info.

3. To download the most recent tax table:

   • Choose Download Entire Update.

   • Select Update. The download is now complete and displays an informational window.

Read more: How to fix QuickBooks keeps crashing?

Solution 2: Review the new W4 information entered for the employee

1. Locate the Employees menu.

2. Choose Get Payroll Updates.

3. Put a checkmark in the checkbox Download Entire Update.

4. Click Update. A window appears after its completion.

Solution 3: Determine whether the employee is due a paycheck and how the taxes can be recalculated

1. Locate the top Employees menu.

2. Click Pay Employees and select Unscheduled Payroll.

3. Right-click the employee's name in the yellow highlight, then click Revert Paycheck. The yellow highlighted name indicates that the employee has a pending paycheck.

4. Click Open Paycheck Detail and input the details of the payroll.

5. Click Save & Close.

Conclusion

In summary, It has been discussed above that QuickBooks not withholding federal taxes error occurs due to many reasons such as annual total salary exceeding the limit, very little amount for gross earnings in the last pay period of the employee, and outdated QuickBooks Payroll tax tables is being used. This can be solved using simple resolution methods, which are provided above. Read the blog carefully and find the best-fit solution for your issue.

Recommended to read: How to resolve QuickBooks Update Error?