QuickBooks Payroll Taxes Not Being Deducted Correctly


In this article you read how to fix “QuickBooks payroll taxes not being deducted correctly“. The reason can be any. You would just need to check what could be the real cause. We here will list the potential causes that is causing QuickBooks payroll error.

How to Fix QuickBooks Payroll Taxes Not Being Deducted Correctly:

QuickBooks Payroll Taxes Not Being Deducted Correctly

Verify if you are calculating on the basis of Gross or Net.

Total Time: 10 minutes

Step 1:

🔹 Click on the list tab to choose Payroll items.

Step 2:

🔹 Now choose the deductions. Double tab on them to see a dialogue box wherein you will have to select Edit payroll items.

Step 3:

🔹 Click on the Next tab and now you will see a separate window that will show you Gross vs. Net

Step 4:

🔹 Verify if the chosen method is correct.

Step 5:

🔹 Click Next and click Finish to close the window.

Step 6:

🔹 Now check if you can figure out if you QuickBooks payroll taxes are working fine. If you did still see them then try another step.

Verify if your Calculations are based on Hours, Quantity or Neither:

Payroll items in QuickBooks are setup to calculate based on the hours or quantity or none. If you have previously set them up based on hours or quantity then you will have to manually enter each and every thing in the Quantity section. If you would ever like to change this setting then you can follow the below given steps:

  • Click on the list tab to select Payroll item list.
  • Double tap on the items and an option called Edit payroll items will be highlighted. Click on that.
  • Click on the Next You will have to repeatedly click on that until you see a new window called Calculate Based on Quantity.
  • If you don’t require payrolls to be calculated based on quantity or hours then select “neither” as your option.
  • Click Next and then Finish and now you will be able to deduct payroll taxes.

If you still face issues following the steps above then you can give us a call. To talk to our QuickBooks Payroll support get all your queries answered.