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(+1(855-478-6082) What to do if QuickBooks Desktop payroll not calculating state taxes?
Understanding the Issue
Q: Why is [[QuickBooks Desktop payroll not calculating](https://forums.serebii.net/threads/1-855-478-6082-how-to-fix-quickbooks-desktop-payroll-not-calculating-state-taxes.790724/)](https://) state taxes?
A: Several factors can cause QuickBooks to fail in calculating state taxes:

Incorrect Employee Setup – If an employee is marked as exempt from state withholding, QuickBooks won't deduct taxes.

Outdated Payroll Tax Table – QuickBooks relies on updated tax tables to calculate payroll taxes correctly.

Payroll Subscription Issues – If your payroll subscription isn't active or validated, tax calculations may not work.

State Tax Setup Errors – If state tax items are missing or incorrectly configured, QuickBooks may not apply them.

Wage Limits Reached – Some state payroll taxes stop calculating after an employee reaches a certain wage threshold.

Software Updates – Running an outdated version of QuickBooks Desktop can cause payroll calculation errors.

Step-by-Step Troubleshooting Guide
Q: How do I fix QuickBooks Desktop payroll not calculating state taxes?
A: Follow these steps to resolve the issue:

Step 1: Verify Employee Payroll Setup
Open QuickBooks Desktop.

Navigate to Employees > Employee Center.

Double-click the employee whose payroll taxes aren't calculating.

Click Payroll Info > Taxes.

Under the State tab, check:

Filing status (Single, Married, etc.).

Number of allowances.

Exempt status (Ensure "Do Not Withhold" is NOT selected).

Click OK to save changes.

Step 2: Update QuickBooks Desktop and Payroll Tax Table
Open QuickBooks Desktop.

Click Help > Update QuickBooks Desktop.

Select Update Now and check Reset Update.

Click Get Updates and restart QuickBooks once the update is complete.

To update the payroll tax table:

Go to Employees > Get Payroll Updates.

Check Download Entire Update.

Click Update.

Step 3: Verify Payroll Subscription
Open QuickBooks Desktop.

Go to Employees > My Payroll Service > Account/Billing Information.

Ensure your payroll subscription is active.

If expired, renew your subscription and restart QuickBooks.

Step 4: Check State Tax Setup
Open QuickBooks Desktop.

Navigate to Lists > Payroll Item List.

Look for state tax items (e.g., State Income Tax, State Unemployment Tax).

Double-click each item to verify correct setup.

Ensure the correct tax rates are applied.

Step 5: Revert Paycheck
Open Payroll Center.

Locate the paycheck with incorrect tax calculations.

Right-click and select Revert Paycheck.

Re-enter payroll details and check if taxes are now calculated.

Step 6: Run Payroll Reports
Go to Reports > Employees & Payroll.

Select Payroll Summary.

Review tax deductions for discrepancies.

If taxes are missing, verify employee setup and tax table updates.

Frequently Asked Questions
Q: What if QuickBooks is still not calculating state taxes after following these steps?
A: If the issue persists, try the following:

Restart QuickBooks and your computer to refresh settings.

Check for conflicting payroll items in the Payroll Item List.

Contact QuickBooks Support for advanced troubleshooting.

Q: Can incorrect tax settings affect federal tax calculations too?
A: Yes, if an employee's tax setup is incorrect, it can impact both federal and state tax calculations.

Q: How often should I update my payroll tax table?
A: You should update your payroll tax table every time a new update is available, typically quarterly.

Q: What happens if my payroll subscription expires?
A: If your payroll subscription expires, QuickBooks will stop calculating payroll taxes until you renew it.

Final Thoughts
Fixing [[QuickBooks Desktop payroll tax calculation issues](https://forums.serebii.net/threads/1-855-478-6082-why-does-quickbooks-desktop-payroll-not-calculating-federal.790637/)](https://) requires a methodical approach, ensuring that employee settings, tax tables, and payroll subscriptions are correctly configured. By following the steps outlined above, you should be able to resolve the issue and process payroll accurately.