# Stop Panicking! QuickBooks Payroll Not Withholding Taxes Issue Solved in Minutes


Many times, while QuickBooks users try to process in their QB application, they get an error message saying [QuickBooks Payroll Not Withholding Taxes](https://dataservicesolutions.com/blog/quickbooks-payroll-not-withholding-taxes/). In such a case, they get confused and do not know how to proceed ahead. If you are also one of the users who is struggling with such a payroll error in QuickBooks, then your search ends here. In this blog, we will help you get the best solutions that you can opt for this payroll, not withholding taxes in QB. So, read the blog given below.

Need help resolving QuickBooks Payroll Not Withholding Taxes Issue? Call the **[phone]** and get help from the experts at Data Service Solution.

### What are the Reasons Behind Getting Payroll Not Withholding Taxes in QuickBooks?

The reasons why your QuickBooks payroll is not calculating the taxes are:
* Your total annual salary amount has exceeded the salary limit.
* Your employee's last payroll has too low a gross wage.
* You are working on an outdated payroll tax table.

### What are the Ways to Get QuickBooks Payroll Not Withholding Taxes Fixed?

Three verified ways to fix the Payroll tax not calculating in QuickBooks are as follows:

#### Step 1: Check the Federal and State Withholding Forms of Your Employees

You need to get a federal W-4 and a state withholding equivalent form for each of your employees for whom you are processing the payroll. So, you need to check if these forms are correctly done.
The calculation of the taxes may depend on the following factors:

* How much do you pay your employee
* How often do you pay the employee
* Marital status of the employee
* Number of dependents on him
* What are the other sources of income

**Read about this:** [QuickBooks Error Code 80070057: The Shocking Reason Your Company File Won’t Open](https://www.aniarticles.com/57396-quickbooks-error-code-80070057-the-shocking-reason-your-company-file)

#### Step 2: Check the Tax Setup in your Employee’s Payroll Product

Here in this step, you need to cross-check if the filing status and all other applicable fields match with your employee’s W-4 or state equivalent forms. If the filing status of your employee is set to Exempt or Do not Withhold, then withholding taxes won’t be deducted from their paycheck. An,d in case you do not wish to exempt the employee from withholding taxes, then change their filing status to the appropriate one.

#### Step 3: Revert Your Employees' Paycheck and Start Over

To revert the paycheck of your employee and start fresh, here is what you need to do:
* Go to the Employees menu, then to Pay Employees, and choose Scheduled Payroll.
* Then, click on the Resume Scheduled Payroll option.
* After that, click right on the employee name and undo the changes.
* Now, click on the Revert Paychecks option.

### To Sum Up!!

Hopefully, the steps mentioned above will help you resolve the QuickBooks Payroll Not Withholding Taxes issue. And after that, you will be able to calculate the taxes easily in your QB application. However, if you need more help in resolving the error, then call the toll-free number [phone]

### Frequently Asked Questions

Q1: Why is QuickBooks Payroll not withholding federal taxes?
A: QuickBooks Payroll may fail to withhold federal taxes if employee tax setup is incomplete, filing status is incorrect, or the software isn’t updated. Checking employee W-4 details and running payroll updates usually fixes the issue.

**Read about this:** [Frustrated with QuickBooks Update Error 1642? Try This Ultimate Solution Today!](https://dataservicesolutions.com/blog/quickbooks-update-error-1642/)

Q2: How do I fix QuickBooks Payroll not withholding state taxes?
A: If state taxes aren’t being deducted, verify the employee’s state tax information, ensure the correct work and residence state are entered, and confirm QuickBooks Payroll is updated with the latest state tax tables.

Q3: Can outdated QuickBooks cause payroll tax errors?
A: Yes, running an outdated version of QuickBooks or missing payroll updates can cause withholding errors. Always download the latest updates to make sure federal and state tax tables are accurate.

Q4: Why is my employee’s paycheck showing no taxes withheld?
A: This usually happens if the employee is marked as exempt, set to zero withholding, or hasn’t reached the tax threshold. Review their W-4 form and QuickBooks tax setup for accuracy.

Q5: Does QuickBooks automatically calculate payroll taxes?
A: Yes, QuickBooks Payroll automatically calculates taxes, but only when employee tax details and company payroll settings are set up correctly. Any missing or incorrect info can prevent taxes from being withheld.

Q6: What steps should I take if QuickBooks is not deducting taxes?
A: Start by checking the employee’s profile, W-4 details, and tax exemptions. Next, update your QuickBooks Payroll tax tables and rerun payroll. If errors persist, contact payroll support for troubleshooting.