How to Resolve Payroll issue, If QuickBooks Payroll is not Calculating Taxes?
Employers, especially small businesses in the USA are liable for FUTA and FICA federal payroll taxes. And with the help of enhanced or full-service payroll by QuickBooks, setting, calculating and paying payroll taxes becomes very easy today. How free and comfortable accounting professionals feel due to the automatic tax calculation feature of accounting software, it can be understood by taking personal feedback by them only.
Getting stuck with the accounting software due to some known or unknown reason is quite frequent for users, and this situation can not be denied. Hopefully, most of us would be familiar with the reason. Yes! the accounting software is not only built with one or two modules; It is the combination of a large number of tools and functionalities developed on the basis of complex IT mechanisms.
What to do if QuickBooks Payroll is not Calculating Taxes? The first thing which you all should know is that which payroll product you are using-As the solution to that product will be decided accordingly.
Some circumstances which can be the reason that QuickBooks Online payroll is not able to calculate taxes automatically are:
- Starting date of the employee
- Incorrect Tax code/ tax information
- Wrong Tax calculation method
Before proceeding further, you must have known that employee set up are accurate so that the tax deduction process should go on automatically. While using QuickBooks enhanced payroll, sometimes it happens when you're not able to calculate taxes; This situation is encountered when the user tries to create a paycheck. Here is the discussion on the topic, how to overcome tax calculation issue with Quickbooks enhanced payroll.
As an immediate step to overcome this issue, you should check & verify whether “payroll subscription’ is activated or not. It can be done by going to section account or billing information in My Payroll Service option under link Employees Menu. Here, if you see that payroll subscription has got inactive, then you should go for its renewal in order to make your QuickBooks capable of calculating taxes correctly.
Also, you should ensure that everything has gone right in the payroll record of employees, as sometimes a minor issue can be the reason for critical headaches. We can understand it with an example- Suppose boss looking around the payroll record knowingly or unknowingly
- Unchecked tax box
- Make payroll items inactive
- Puts an employee to “no withholding” state
Chances of this situation to occur are however very least; The major concern for discussion is the problem with last payroll update.
Managing payroll updates is not a difficult task, but sometimes it can be a boring & time-consuming task, therefore users prefer taking help from any third person who is an expert in performing these tasks efficiently. QuickBooks Online Support Phone Number is a trusted mean to get significant support on this topic.
How QuickBooks fails to download tax tables of payroll | QuickBooks payroll is not calculating taxes
While downloading payroll tax table update, the process might create hindrance when the update is not installed completely by the QuickBooks. This situation mostly occurs when the user leaves the payroll center before the complete file is downloaded.
Let's take an example of an employee whose payroll is incorrect as QuickBooks has withheld no taxes.
There might be two ways to resolve this mess. You can do it manually if a number of employees with inaccurate computation is less, otherwise, you need to:
- Change the check by reducing work hours to a single hour. After that save it in the way the accounting software computes it.
- After that, open check register and set the paycheck(with error) to "void".
- Next re-open QuickBooks and process a new paycheck with the confirmation of correct time frames for start, end & check payment dates.
Through illustration in the image, calculation of all taxes is visible now. In case you have more than one paycheck, you should follow the same process with each-reducing their hours to 1, voiding and issuing new checks. Hope, you understood the procedure to overcome the payroll tax calculation issue. In case of any doubt or misconception, feel free to contact customer service representatives on phone call.