# Why is Desktop Payroll not Calculating Federal or State Taxes?


When performing operations in QuickBooks, there are times when you face [**QuickBooks Payroll not calculating taxes**. ](https://a2autocare.com/article/quickbooks-payroll-not-calculating-taxes/)This might occur when your software or payroll is not updated, or the QB company file is corrupted or damaged. This can cause trouble while creating tax tables and managing business finances. This blog will help you learn more about this issue and provide guidance on how to address it.

# Why Can’t QuickBooks Payroll Not Take Out Taxes?
There can be multiple case scenarios through which you can identify the root causes.

* The employee information is misconfigured.
* Old version of QuickBooks Desktop.
* Damage or corruption of the company file data.
* The employees are not qualified for taxable wages, or the gross salary is set at a lower level.
* If the subscription status is inactive, this error can occur.
* If the payroll tax table is outdated.

These were some principal causes for this error. Let’s look into the troubleshooting problems for this error.

# How Can You Tackle QuickBooks Payroll Not Calculating Taxes?
After learning about the causes of this error, let’s deep dive into the troubleshooting methods.

**1. Update the QuickBooks Desktop**
* Access the QB Desktop.
* Head over to the Help menu.
* Tap on the update QuickBooks option.
* Click on the "Reset Updates" option and select the "Get Updates" option.

Once the update is done, restart the system.

**2. Update the QuickBooks Payroll Table**
* Access the QuickBooks Desktop.
* Under the Employees tab, select the Get Payroll Updates option.
* Click on the Download Entire Update option.
* Lastly, update the QB Payroll tax table.

**3. Check the Employee Payroll**
* Launch the QuickBooks Desktop and move to the Employees tab.
* Under the Employees option, click on Scheduled Payroll.
* After following the steps, tap "Resume Scheduled Payroll."
* Select the Revert Paychecks option for the employees whose changes have been made.
* To verify the employee’s paycheck, look under the yellow highlighted area and click Open Paycheck Detail.
* Complete the payroll information and save the changes.

**4. Verifying the Employee’s Taxes**
* Under the Employees tab, double-click on every employee name.
* Check the Payroll Info to verify the Pay Frequency.
* Select the Federal tab and review the Allowances and Filing Status, then click on the Taxes button.
* If necessary, make the required adjustments and select OK.

**5. Check the Employee’s Payroll Tax Settings**
* Access the QuickBooks Desktop.
* Under the Employees menu, look for Employee Center.
* Double-click on the name of the employee to verify the Payroll Information.
* Check the Pay Frequency and move to the Taxes Table.
* After reviewing the Filing Status and Allowances, select the Federal option.
* Click on OK.
* These are some solutions that can help you resolve this error and tackle it in real time.

# Conclusion
This blog provides a deep dive into QuickBooks Payroll and the calculation of taxes. We have discussed the reasons why this error occurs. Moreover, we have outlined troubleshooting steps that can help you resolve this error.
**If you need assistance with this error, please don't hesitate to contact our experts at [phone] .**